New Crop of Governors Plan Changes for TBED

This week 37 states held gubernatorial elections. In many states, technology-based economic development took on a central role in the campaign as candidates put forth their ideas on how to create jobs in a difficult economy. SSTI has collected some highlights from proposals put forth by new governors-elect that address topics related to TBED.California
California Gov.-elect Jerry Brown (D), who previously served as California governor from 1975-1983, proposed major investments in clean energy, as well as several new initiatives to spur manufacturing. The centerpiece of Brown's job creation initiative is a series of goals for clean energy productions, including the generation of 12,000 megawatts of localized energy by 2010 and 8,000 megawatts of large-scale renewables and the necessary transmission lines. Under Brown's plan, 33 percent of the state's electricity would be derived from renewable sources. A clean energy jobs czar would be responsible for ensuring that all energy jobs goals and deadlines are met and a "strike team" would coordinate worker training programs, tax incentives, and other state programs to attract and retain jobs. The team would be responsible for recruiting businesses, creating incentive packages and leveraging private and federal research dollars to target specific opportunities for California businesses and industry.

Gov.-elect Brown plans to introduce a range of incentives to encourage manufacturing jobs, such as accelerated depreciation and sales tax reduction/elimination for manufacturing equipment. His administration would also review incentives for clean tech manufacturing, including state and local purchasing preferences and remove regulatory hurdles for retrofits of existing buildings to increase energy and water efficiency, install cool roofing materials, and improve indoor air quality.

Colorado
Current Denver Mayor and Gov.-elect John Hickenlooper (D) proposed a job creation and economic recovery plan that prioritizes creating new jobs, streamlining the state's economic development offices and building regional development strategies. Hickenlooper plans to continue to support Colorado's existing business creation and investment incentives, including the Innovation Investment Tax Credit and the Bioscience Research and Evaluation Grant program. He suggested, however, that these programs are under-performing due to being spread out among several state agencies. His plan calls for consolidation and streamlining of Colorado's various state agencies that administer economic development programs and incentives. He also proposed empowering the state's Small Business Development Centers to be the first-stop for businesses to access state and federal resources.

Hickenlooper plans to help create regional strategies to support local industries around the state. His recovery strategy proposed using the newly-created Workforce Council to bring together local businesses, chambers of commerce, and economic development and workforce entities to identify local barriers to entrepreneurship and propose new initiatives.

Connecticut
Gov.-elect Dan Malloy (D) has developed a roadmap focused on innovation and entrepreneurship. Gov.-elect Malloy would develop a fund using close to a billion dollars in unused research & development tax credits to leverage new research and advanced manufacturing space, and encourage the participation of state and municipal pension funds to augment the initial investment. The secretary of the state named Malloy, the former Stamford mayor, as the winner after a contentious night at the polls. His contestant, Tom Foley, vows to dispute the election. Under the Malloy administration, the state would expand in stem cell research and other cutting edge bio-medical fields.

His education and workforce development plans would focus on ensuring that "life-long learning" strategies are in place for Connecticut students and workers. He would target development of private-public partnerships to improve links between workforce training and key competitive industries, retooling career ladders and ensuring access to affordable, and relevant incumbent worker training.

Florida
Gov.-elect Rick Scott (R), a health care executive and Navy veteran, proposed a seven-step economic plan that he says will create jobs and allow Florida to become a job creation model for the nation. In seven years, the 7-7-7 economic plan aims to create 700,000 jobs and generate $74 billion in state GDP, $41 billion in higher personal incomes, and $1 billion in total state revenues as a direct result of increased economic growth. Investing in the state's universities, phasing out the business income tax, reducing property taxes, and enacting regulatory reforms are included in the plan.

To grow and retain jobs, Scott would continue to invest in the Innovation Incentive Fund, established in 2006 under former Gov. Jeb Bush to attract major life sciences institutions and create high-tech jobs. In the past few years, the fund has lured Scripps and Burnham research labs to the state. Lawmakers recently replenished the fund with $75 million in the FY11 enacted budget (see the June 9, 2010 issue of the Digest). Scott's plan also includes nurturing new cutting-edge technology clusters, such as the biotechnology cluster in Orlando. To eliminate overlapping economic development agencies, He would designate one group to assist local economic development agencies and serve as the statewide recruitment agency.

Citing a world-class university system as necessary to establishing a workforce capable of enhancing the state's technology sectors, Scott would invest in university research, laboratories, business incubators and technology transfer. Although no specifics on funding or action items are outlined, the plan refers to connecting university research to the state's economic development process and leveraging investments in the state's medical colleges to invest in new or emerging technologies.

Georgia
Gov.-elect Nathan Deal (R) proposed a five-point plan that includes proposals to enhance economic competitiveness such as creating a CAPCO program to fuel R&D, maximizing access to capital for small businesses, and exempting startup companies from corporate income taxes for the first ten years. A portion of Deal's blueprint for economic development in Georgia is centered on growing the biotech and medical device industry in order to create high-paying jobs.

Deal wants to establish Georgia as a leader in biotechnology, leveraging the resources of the state's world-class universities and research institutions. Georgia currently is ranked among the nation's top ten states in biotechnology, but Deal says growth in the industry is hampered when compared to competitor states because of challenges in obtaining venture capital for startup companies. To bring in new businesses and encourage entrepreneurship, Deal wants to cut corporate income taxes by one-third and exempt startup companies from corporate income taxes for the first ten years.

Part of his plan for increasing access to capital for small businesses included establishing a CAPCO program, which relies primarily on the private sector to invest in targeted geographies or industries, according to his campaign website.

Hawaii
Gov.-elect Neil Abercrombie (D) released several proposals that focus on improving the state's efforts to support technology and innovation. Abercrombie plans to create a new Governor's Technology Council, which would include entrepreneurs, investors, businesses, researchers, government and others to implement and oversee the state's technology agenda. This council would set statewide goals for technology initiatives and make recommendations for state action. He proposed a new regime of tech incentives for companies at all states of development. These would include R&D incentives, state follow-on funding for commercialization, implementation of a State Private Investment Fund and the designation of a larger portion of local investment funds into venture capital.

Gov.-elect Abercrombie has also made innovation and commercialization a major component of his higher education plan. His recommendations include a new fund to support faculty entrepreneurship and help them seek outside funding for research and innovation. New public-private innovation labs would support technology and entrepreneurship education at the K-12 level, while universities would be encouraged to engage more with local technology businesses. Abercrombie also would continue to support for major university research projects, such as the Thirty Meter Telescope, the School of Ocean and Earth Science and Technology and Honolulu's Cancer Research center.

Kansas
Gov.-elect Sam Brownback (R) plans to implement a Strategic Economic Development Plan that is not detailed on his campaign website. Brownback places education reform as a high priority for continued growth in state's science and technology sectors. His plan calls for promotion of K-12 STEM education to support Kansas' current success in science and technology. In higher education, Brownback supports innovative programs at the state's community colleges to meet future industry needs and development of top-notch research institutes in the biosciences.

Iowa
Gov.-elect Terry Branstad (R), a former Iowa governor serving four consecutive terms from 1983-1999, issued a policy proposal aimed at eliminating what he refers to as excessive government interference in new job creation by requiring a small business jobs impact statement for any new administrative rule in Iowa. Branstad also would sunset all regulations affecting job creation and retention and replace the state's current economic development agency with a public-private partnership tasked with promoting and marketing the state to attract new investments and jobs.

Pledging new regulations to increase job opportunities in the state, Branstad proposed to sign an executive order, which would require any proposed administrative rule be accompanied by a small business and jobs impact statement. The legislature would be asked to adopt a similar requirement for proposed legislation. The statement would include projections of how many small businesses would be affected by the proposed law or regulation, its impact on employment, and the effect on the cost of doing business in Iowa. Another proposal would create a four-year rolling sunset of all state regulations affecting job creation and retention in the state.

To help meet an ambitious goal of creating 200,000 new jobs in Iowa over the next five years, Branstad proposed replacing the current Iowa Department of Economic Development with the Iowa Partnership for Progress, a public-private partnership led by a chief executive officer. The partnership would be governed by an independent board of directors and chaired by the lieutenant governor.

Maine
Gov.-elect Paul LePage (R) proposed initiatives that would increase opportunities for entrepreneurship in Maine including a speedier permitting process, immediate capital expensing, and additional tax deductions for business purchases. He also would eliminate the statewide fees on startups. LePage's plan promoted development of the state's green energy capacity (e.g., Biomass, wind, co-generation, nuclear, solar, tidal and hydro sources) to reduce the burden on consumers.

Michigan
A key part of Michigan Gov.-elect Rick Snyder's (R) 10-point plan for reinventing Michigan involved reforming the Michigan Economic Development Corporation. Snyder formerly served as the first chair of MEDC and later as the first chair of Ann Arbor SPARK. Under his reform plan, MEDC would reduce its state-level staff and lean more heavily on regional partners to provide service at the local level. The organization would take on an increased role in making capital available to entrepreneurs and second-stage companies. His plan would increase partnerships with the state university system and the business community, including private sector leadership of MEDC itself. Snyder would reform the MEDC Executive Board to include professionals with business experience.

Gov.-elect Snyder also plans to launch a statewide program to accelerate the development of startups by offering assistance through regional incubators and accelerators. These centers would work closely with the state's university to commercialize new technologies.

Minnesota
Mark Dayton (D) currently has an unofficial lead to replace term-limited Gov. Tim Pawlenty (R). Dayton's Jobs plan revolves around a new "State-Local Economic Development Plan" focused on expanding state's "Star Cities for Economic Development" program, which trained local Economic Development Corporations throughout the state in effective business recruitment and job creation strategies. Dayton also would promote small business development through establishment of a micro-lending fund and a "Buy Minnesotan" preference for state contracts. Finally, he would focus on increasing funding for education at every level to fuel long-term economic growth. He would specifically emphasize STEM education initiatives. Dayton also calls for a strong focus on growing the state's green economy by attracting green technology companies to Minnesota and cultivating the current green economy.

Nevada
Gov.-elect Brian Sandoval (R), a former state assemblyman and former state attorney general, hopes to expand career and technical opportunities, according to his education plan. Additionally, Sandoval hopes to incentivize college readiness by creating tax incentives for businesses that contribute to a scholarship fund for high school students seeking dual enrollment programs for college and/or that provide continuing education opportunities for their employees.

New Mexico
Govenor-elect Susana Martinez (R), replacing term limited Democrat Bill Richardson, issued a plan to revive New Mexico's energy industry and position the state as a leader in this sector. Specifically, Martinez would reduce "unnecessary and costly" regulations on energy producers to encourage investment in new technology that would provide additional environmental protections. She also would reverse the pit rule, which she refers to as a scientifically unnecessary regulation that imposes an additional cost of $250,000 per well in New Mexico. To help improve the business climate, Martinez wants to streamline and expedite state government loan programs to small businesses.

New York
Andrew Cuomo (D) proposed the New NY Agenda: A Plan for Action focused on a "jobs now" tax credit of up to $3,000 for each unemployed New Yorker hired for a new job; a new strategy organized around regional industry clusters; reducing the high costs of doing business in the state and supporting small businesses by increasing access to capital and streamlining regulatory barriers. Cuomo also proposed continuation and creation of tax cuts targeted at attracting and retaining businesses.

His proposal focuses on regional industry clusters to drive the New York economy under a single authority. The authority for economic development programs would be consolidated under a single office that reports directly to the governor. This office would oversee the creation of regional economic councils to facilitate the clusters. The clusters will focus on leveraging regional assets to grow individual industries. Cuomo's plan also incorporates workforce development strategies and higher education reform into developing and strengthening regional clusters.

Ohio
John Kasich (R) called for creating a business environment that rewards investment and transforming Ohio's education system to meet the workforce demands of tomorrow's economy. He also proposed the privatization of the Ohio Department of Development. The proposal, according to the Columbus Dispatch, calls for the development of JobsOhio, which would include an appointed 12-member board of directors to oversee economic development efforts by the state. Kasich said that JobsOhio would focus on "attracting and retaining companies, linking businesses with customers, suppliers and researchers and helping them identify financing." Third Frontier, Ohio's $700 million dollar bond package to expand S&T, would also be privatized, according to the Dayton Daily News.

Oklahoma
Oklahoma Gov.-elect Mary Fallin (R), a current congresswoman and former lieutenant governor, supports targeted investment in strategic industries, a review of the state's business incentives and increased investments in STEM education in her economic plan. Fallin plans to target the aerospace, biotech and military industries to spur job creation and high-tech development. This support would come, in part, from the state's EDGE program. The EDGE program, which invests in technology-based research and development projects, would become the state's primary engine for support and growth of tech jobs under Fallin's plan.

Fallin has also proposed a comprehensive review of the state's tax credits and the elimination of those credits that do not produce new jobs. She has, however, called for the introduction of new tax credits and incentives to support the production of alternative energies.

Oregon
Gov.-elect John Kitzhaber's (D) plan for Oregon's economic development revolves around the green economy, workforce development, small business development and knowledge-based industries. In the green economy, Kitzhaber would focus on large-scale constructions and upgrades to the state's public schools through a bonding initiative. Long-term, Kitzhaber would invest in green energy development through a bonding initiative that targets renewable energy projects — specifically biomass energy. His Oregon Business Plan calls for a "40-40-20" education goal: 40% of adults would have a bachelor's degree or higher; 40% would would have an associate's degree or technical degree; and the remaining 20% would have a high school diploma that prepares them for the workforce. To grow small business and the knowledge-based industries, he proposed strengthening private sector research efforts, creating a good entrepreneurial climate and increasing access to capital for businesses.

Pennsylvania
Gov.-elect Tom Corbett (R) developed a five-part economic development plan that includes expanding innovation, reforming the state's job climate, developing a world-class workforce, growing small businesses and expanding Pennsylvania worldwide. Corbett's economic development program would be heavily focused on sustainability by driving green solutions across all sectors, including healthcare, agriculture, transportation, energy, technology, infrastructure and government.

To expand innovation, Corbett would work to make Pennsylvania a leader in rolling out a fiber and wireless 4G broadband infrastructure through the development of an integrated statewide broadband strategy that leverages both public and private investment. The plan also called for accelerating innovation through collaboration. To achieve this goal, Corbett would establish the "Discovered in PA — Developed in PA" program — a public-private partnership — among Pennsylvania's universities and representatives of the governor's office, Department of Community and Economic Development and Department of Education to increase innovation within the higher education community with a focus on best practices. Angel investment tax credits and other capital investment programs also would be instituted to spur investments in innovation. However, his site does not provide specific detail on these programs. These innovation and high-tech infrastructure developments are intended to expand the state's manufacturing base.

The development of a highly-skilled workforce is priority of Corbett's plan. It would include improvements in the state's 22 regional Workforce Improvement Boards and the state's overall Workforce Improvement Board. Under the Corbett administration, private-sector involvement would be cultivated. The board would develop a curriculum that would identify businesses' current needs and prepare new and incumbent workers for these opportunities. This includes working closely with the Pennsylvania Center for Advanced Manufacturing Careers.

Rhode Island
During his gubernatorial campaign, Rhode Island Gov.-elect Lincoln Chafee (I), a former Republican U.S. senator, released 100 Days for Jobs Plan that would guide his administration's economic recovery plan during his first 100 days in office. As outlined in the plan, Chafee would make the governor's office the center for planning and marketing new development opportunities, particularly investments in infrastructure that attract high-quality businesses and technology companies. One of these investments would be the rollout of ultra high-speed Internet connectivity for Rhode Island businesses. He also would instruct the director of the Rhode Island Economic Development Corporation (RIEDC) to develop a small and medium-size business plan within 30 days, and introduce reforms to make the state more friendly to freelance workers.

The 100 day plan includes a new Middle College Program, modeled on plans in other states, to provide career training for students to become skilled workers. Chafee also called for an audit of all the state's economic development tax deals to make these programs more transparent and to verify their effectiveness.

Chafee released a separate 10-point economic development plan that would leverage Rhode Island's $125 million Loan Guaranty Fund to encourage new business startups. Under the new program, the state would conduct a nationwide business plan competition to attract innovative new businesses from around the country. The competition would focus on key technology industries, including green energy and the life sciences. Qualifying teams would be eligible for loan guarantees between $250,000 and $6.25 million (or amounts larger only with sufficiently compelling job creation opportunities). The plan would offer loan guaranty support for 50 or more new or existing businesses.

South Carolina
Gov.-elect Nikki Haley's (R) economic development strategy revolves around enhancing the workforce development process, strengthening the South Carolina's Department of Commerce and advancing and expanding technical education programs. The Haley administration would expand the existing Ready SC program, which pairs graduates of technical colleges with industry to match business needs with trained workers.

Tennessee
Gov.-elect Bill Haslam (R)'s economic development plan includes creating regional economic development strategies that would leverage each region's unique assets, focusing on small business growth, increasing educational achievement and creating a highly-skilled workforce. He promised to work with community colleges, technology centers and universities to develop a comprehensive workforce development strategy focused on creating a 21st workforce.

Vermont
Vermont Gov.-elect Peter Shumlin (D) has announced his intension to continue funding the state's Entrepreneurial Seed Capital Fund and to expand broadband coverage into rural areas. The seed capital fund provides agricultural, technology and green startups with access to early stage capital and other entrepreneurial support services. Shumlin's A Vision for Vermont lays out a plan to extend broadband coverage to every part of the state in order to promote the creation of new startups and energy companies. He would establish a public-private partnership to service Vermont's underserved areas by 2013 so that high-speed data and mobile coverage are available everywhere. Shumlin's energy strategy for the state is based on support for utility-scale and community-scale renewable energy projects.

Wisconsin
Gov.-elect Scott Walker's (R), the first republican governor in Wisconsin since 2002, economic development plan includes workforce development and clean energy components. Walker's workforce development strategy will integrate the private sector's interests with the state's educational institutions. This includes the crafting of curriculums by universities and technical colleges to align with industry clusters' needs. Internships and apprenticeships for high school and college students also will be expanded to fill the need for highly skilled workers in all industries. As governor, Walker also pledges to diversify the state's energy supply, including nuclear power, and to position Wisconsin as a transmitter of energy to surrounding states.

Wyoming
Gov.-elect Matt Mead's economic policy would support entrepreneurship through the reduction of red tape and paperwork and expansions of workforce development program statewide to foster skilled workforce development. Mead also would focus on promoting technical colleges that provide training for many of the jobs needed in Wyoming.