On April 20, the Virginia General Assembly sent three economic development-focused bills (HB 1343, HB 846, and HB 834) to Gov. Terry McAuliffe. The bills include the creation of a new research fund and the creation of a network of regional economic development councils. Although the bills have yet to be signed, Gov. McAuliffe has publicly supported each of them. This package of economic development initiatives was originally proposed in the governor’s economic development strategy as well as his recent budget proposal. However, it took some compromise between the governor’s original proposals and the General Assembly to reach a final package.

Virginia Gov. Terry McAuliffe announced the creation of a pay-for-performance workforce training program that will help Virginia workers acquire the industry certifications and occupational licenses that meet the needs of key businesses in each region of the state.

Educational initiatives continue to dominate in state of the state, budget and inaugural addresses, with governors in North Carolina, New Hampshire and Oregon all acknowledging its importance in the workforce development sphere and the future competitiveness of the states.

While many universities maintain startup investment funds targeted at growing university-affiliated startups, several universities are looking beyond their walls for investment opportunities that will create a return on investment (ROI), but also support economic prosperity. Through these investment funds, universities are able to make strategic investment in startups that will contribute to the future growth of their community, region and state. Massachusetts provides a recent example where MIT will invest $25 million in local startups.

Noting a growing need for additional education to meet workforce needs, several states have announced programs focusing on education and workforce needs, channeling state funding to grants that will focus on aligning learning opportunities with business and industry needs, or creating new initiatives in the private sector. Reaching a higher educational attainment among a greater percentage of the workforce by 2025 is also a goal set by several of the states.

While the recent Job Openings and Labor Turnover Survey (JOLTS) has some economists concerned that the U.S. economy is running out of qualified workers to fill existing openings, several states have announced workforce programs that are intended to address the skills-gap and build the talent pipeline in their respective states.

In June, Virginia Gov. Terry McAuliffe announced that Virginia businesses can offer registered apprenticeships to individuals in three cybersecurity occupations – Information Security Analyst; Cyber Security Analyst; and, Incident Response Analyst. The Virginia Apprenticeship Council approved the three new registered apprenticeships as well as the criteria that registered apprentices in cybersecurity must learn and demonstrate through the program for the necessary proficiency in the cybersecurity field.

Kentucky and New Hampshire recently have announced job training initiatives to address the needs of key industries at both the local and state levels. The Kentucky Work Ready Skills Initiative, a $100 million statewide bond program, is intended to meet “the needs of employers and promote sustainable incomes for Kentuckians.” Meanwhile, the launch of New Hampshire’s Manufacturing Sector Partnership, a statewide collaboration for industries to address their workforce needs, was announced.

A month after a federal court ruled that high-speed Internet service can be defined as a utility, four states have announced commitments to expand high quality, reliable broadband services to rural areas and other underrepresented groups. Two Midwest states, Wisconsin and Minnesota, will provide funding to help support projects that improve access to broadband and spur economic prosperity.

Funding for TBED programs took a hit under Massachusetts Gov. Charles Baker, who vetoed millions of dollars in programs that the legislature had approved in the FY 2018 state budget. Michigan programs fared better with funding maintained to diversify the state’s economy and funding for entrepreneurship ecosystems getting a boost. And in Virginia, after a messy budget process addressing an addendum to its biennial budget, many innovation programs saw increases.

Massachusetts

With a July 1 start to the fiscal year in most states, several states that were at an impasse over their budget faced at least partial shutdowns. Last minute negotiations restarted services in both Maine and New Jersey, while Illinois, which has been operating without a budget since 2015, faces threats of a downgrade in their credit rating if a deal cannot be reached. This week we present our findings of innovation funding from seven states, including $2 million in funding for a new public-private economic development organization in Delaware, an increase in funding in Louisiana for the state’s scholarship program for higher ed, and cuts to higher ed funding in Missouri, which also saw a severe drop in its funding to the Missouri Technology Corporation. Efforts in Maine, New Hampshire, Vermont and Washington are also detailed below.