This week we continue our series on state legislation pertaining to the innovation economy that has been enacted this year around the country. This second installment of the States of Innovation 2017 series deals with free tuition.

A number of states took action to increase the education and skills of their workforce by implementing free or greatly reduced tuition programs at either community colleges or state colleges. The move to increase access to higher education while not new, took up increased urgency this year. With Arkansas, Florida, Kentucky, New York, North Carolina, Rhode Island and Tennessee all taking action this past year, Maine and North Carolina were among others considering other options but as of today’s publication not moving the proposals forward.

Connecticut and Wisconsin both ended their protracted budget negotiations with the governors signing budgets in late September and late October. Faced with budget constraints and uncertainty about the spending plan, Connecticut’s funding for economic and community development is decreasing along with funding for the state’s MEP center and Manufacturing Supply Chain program, with no general funds provided for them in the second year of the biennium. Wisconsin appears to be maintaining its status quo on TBED-related initiatives and has increased funding to universities that increase enrollments for “high-demand” degree programs, making $5 million available on a competitive basis.

Due to the effectiveness of employer-sponsored training program, U.S. states are working to build partnerships with industry partners that leverage public resources to help develop a 21st century workforce that addresses specific industry needs. Over the last month, partnerships have been announced between states and key industry leaders including AGCO, CVS, Tesla, and the U.S. Chamber of Commerce Foundation. Some of those collaborations are detailed below.

The ability of states to deliver the services promised to its residents relies on their fiscal soundness. With most states beginning their fiscal year in July, SSTI has reviewed the current fiscal standing for each state and here presents a snapshot of our findings.

Most states ended their fiscal year with a surplus and continue to recover from the Great Recession, with a growing economy and job gains. However, they face continuing demands on their budgets, with expanded Medicaid payments and the growing opioid crisis confronting nearly every state. Such decisions affect the state’s ability to fund innovation efforts, from the amount of support available for higher education and STEM programs, to funding for entrepreneurship, and forging public private partnerships to strengthen innovation programming that the private sector cannot fully support.

Our analysis found that some states that rely on the energy sector to fund their spending priorities continue to struggle, while others are already factoring in anticipated revenues as a result of new Supreme Court rulings involving gaming and online sales tax collections.

As part of an official kick-off for a yearlong Policy Academy, interdisciplinary teams from around the country met in Washington, D.C., last week to advance policies that strengthen their manufacturing sectors. The four state participants – Kentucky, New Jersey, Puerto Rico, and Utah – are comprised of leadership from governor’s offices, state economic development departments, Manufacturing Extension Partnership centers, manufacturing trade associations, and other manufacturing centers. In addition to facilitated working groups, the event featured speakers from Deloitte, The National Center for the Middle Market, NIST, MForesight, New America, and the National Governors’ Association.