SSTI Digest

Analysts Say Request Going Nowhere
The last budget request of a lame duck administration rarely musters much attention from Congress as its focus is turned toward the next administration and, for entire the House of Representatives, its own re-election. Not one of the previous seven budgets of the Bush years has been passed on time, so no one in Washington expects this one to be the exception.
 
Nevertheless, the fiscal year 2009 request provides the Bush Administration one final opportunity to outline how it would like to see the federal government spend its money. As in every previous budget request from the Bush White House, that doesn’t include much for economic development programs. “Highlights” for economic development programs include:

Four years ago, President Bush launched a nationwide initiative to increase the availability of affordable, high-speed Internet access. The Administration's Broadband Initiative, which included efforts to expand the wireless spectrum available for commercial use and new funding to support broadband research, sought to eliminate the gaps in service that existed in many areas of the country and to improve U.S. competitiveness through its broadband infrastructure. Networked Nation: Broadband in America 2007, a new report from the U.S. Department of Commerce's National Telecommunication and Information Administration (NTIA), states this initiative has "to a very great degree" accomplished this mission.

 

External groups tracking broadband policy and use disagree with that conclusion.

 

Gov. Charlie Crist outlined several new alternative and renewable energy initiatives aimed at diversifying the state’s economy and creating high-wage jobs in his fiscal year 2008-09 budget recommendation. Many of the new proposals would be financed by tapping into the state’s budget reserves and relying on casino and lottery revenues.

 

The governor’s proposal invests $200 million in energy-related research and commercialization projects, along with rebates and tax credits for consumers, that build on the policy framework of the Serve to Preserve Climate Change Summit held last summer. Funding is directed to implement new research priorities for the state, including:

Gov. Brad Henry unveiled the details of his fiscal year 2009 budget recommendation earlier this week, providing a substantial increase in funding to the state’s lead TBED agency and proposing a permanent funding mechanism for cutting-edge research through the EDGE Endowment.

 

Citing a sizable return on investment from the Oklahoma Center for the Advancement of Science and Technology (OCAST), the governor is recommending $34.5 million for FY09 – a 54 percent increase over last year’s appropriation. OCAST is slated to receive $6 million to replace one-time funding for the Bioenergy Center – established in 2007 – and $5 million to replace seed capital funds that were diverted last year for the center (see the June 6, 2007 issue of the Digest). An additional $4 million from OCAST seed funds appropriated last year would be allocated to the Bioenergy Center in FY09 for a total of $10 million. Gov. Henry also recommends $1 million to enhance existing OCAST programs.

 

Several months of debate leading into a special legislative session late last year was not enough to convince lawmakers to approve funding for two of the governor’s major TBED priorities. With the release of the fiscal year 2008-09 budget recommendation, Gov. Ed Rendell is again asserting the importance of the alternative energy legislation and the Jonas Salk Legacy Fund, urging lawmakers to quickly enact the initiatives.

 

The alternative energy legislation calls for an $850 million bond issue securitized by an electric power public benefits charge to fund energy independence programs (see the Feb. 12, 2007 issue of the Digest). Additionally, the governor’s budget recommends $500 million – a portion of the state’s Tobacco Settlement Fund – in seed funding for the Jonas Salk Legacy Fund for biosciences research, biotechnology commercialization and investment capital.

 

Measuring the strength of a state or region’s economy, particularly the elements related to tech-based economic development, is a tricky but vital tool for developing and updating TBED policies. Several challenges present themselves when deciding what information to present on the elements of the innovation system and assessing the region’s health and performance relative to appropriate surrogates.

 

Fortunately for the field, two states that have been leaders in using an index as a policy development tool, released reports last week which display an array of methods to analyze their own state’s relative TBED performance. Each report provides a unique perspective and can provide models for emulation and customization by other states.

 

Massachusetts