The innovation economy is a featured component of both newly elected governors’ agendas, with each showing support for TBED-related initiatives in their platforms. In New Jersey, Governor-elect Phil Murphy (D) has pledged to reclaim the state’s innovation economy while in Virginia Governor-elect Ralph Northam (D) proposed a new workforce development plan focused on “the new-collar jobs of the 21st century.”

New Jersey is considering a state program for free tuition for community college which would be phased in over several years and Virginia is proposing money for a customized workforce recruitment and training incentive program in newly proposed state budgets. Both states have new governors who have revised their predecessors’ budgets, resulting in some additional TBED initiatives in the states.

The last of the governors’ state of the state addresses for this year have been delivered, and New Jersey’s governor presented his first budget address. SSTI has continued to review the addresses for news on TBED initiatives and presents excerpts of their addresses concerning such initiatives below. Louisiana’s governor is focused on addressing a fiscal cliff while preserving education gains in the state. New Jersey’s governor laid out a vision embracing green energy in the state and growing high school STEM-focused programs.

Governors are continuing their annual address to legislators and constituents and workforce development continues to take center stage, with the governor of Oregon rolling out a new five-step plan she hopes will invigorate the economy and close the skills gap while Oklahoma acknowledged difficult times and Tennessee says it may achieve an education goal two years ahead of schedule.

Workforce development programs and apprenticeships continue to win favor in many of the governors’ state budget proposals. In our latest review of TBED initiatives being proposed in state budgets, we found Kansas asking for additional funds for research, worker training and apprenticeships; Massachusetts is looking to double community college scholarship funding and increase several workforce development initiatives; and in Michigan, skilled trades training would receive a boost.

Kansas

Over the last several months, economic development organizations, universities, and their partners have announced new efforts to create the building blocks for entrepreneurial development in rural communities. Examples include i2e announcing new efforts to expand entrepreneurial support services to rural communities in Oklahoma and three Indiana universities partnering to support startup growth in rural regions across the state.

SSTI has reviewed the ballot initiatives across the country that affect innovation. Several states have energy initiatives on their ballots, while higher education funding is at play in Maine, Montana, New Jersey and Rhode Island. Utah could become only the second state to fund its schools through gas taxes, if a measure there is passed. At the same time, four states have ballot issues addressing redistricting commissions which could have a significant impact on state legislative makeup when lines are redrawn after the 2020 census.

Arizona

Over the past few weeks, Delaware, New Jersey, and Tennessee have proposed, announced or expanded investment tax credit programs to spur job creation and innovation. In Delaware, Gov.

Inclusive workforce development, downtown revitalization, and an influx of funds for venture capital are among the proposals in an economic development strategy unveiled by New Jersey Gov. Phil Murphy earlier this week. In an effort to focus on bottom-up development rather than a package of tax incentive programs favoring big businesses, the strategy seeks to build the nation’s “most diverse and inclusive innovation economy.”

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.

New Jersey, long considered a state-leader in technology-based economic development prior to the Great Recession, has committed to reinvesting in its innovation economy. In addition to the legislature overwhelmingly approving a bill to reconvene the New Jersey Commission on Science and Technology — the state’s primary technology-based economic development organization — Gov. Phil Murphy also announced several other initiatives to support innovation and entrepreneurship in the state.

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.

New Mexico Gov. Michelle Lujan Grisham became the latest governor to propose a plan for free tuition, with what has been called the “one of the most ambitious attempts to make higher education more accessible.” If approved, the plan would allow in-state students to attend any of the 29 state public colleges or universities, regardless of income. It is designed as a “last-dollar” program.

In general, the effect of the pandemic on states’ budgets due to the wave of business, retail, and commerce shutdowns, as well as other reduced economic activity across the nation, is not entirely known, or too early to forecast; however, a number of states are beginning to experience the initial impacts of a substantial downturn. With several states having already enacted their 2020-21 budgets, special sessions are expected later this year to deal with declining revenues. Others ended sessions early without a new fiscal year spending plan in place.

As the economic fallout continues from the coronavirus pandemic and associated shutdown, states are still uncertain as to what their financial situations might be as they attempt to craft their new spending plans for a quickly approaching new fiscal year, which for most states start July 1. Last month, New Jersey state leaders took a unique approach to the situation by extending the current fiscal year from June 30 to September 30. The extension addresses a number of issues.

Proving that innovation is appealing to states regardless of their size or political leanings, new initiatives in both Democratic and Republican states, as well as large states like California and small states like Vermont, are driving innovation agendas into action in areas ranging from clean energy and aid for students and colleges, to new venture capital investments and bond financing to support business collaborations with higher education to help translate cutting-edge research into products and companies.

New Jersey Gov. Phil Murphy signed multiple bills late last month that may help position the state as a leader in technology-based economic development. One bill increases the tax credit for angel investors in qualified technology companies, with even larger credits available for investments in women- and minority-owned businesses and those located in low-income areas. Meanwhile, the state’s approved FY 2020 budget includes $1.0 million for the New Jersey Commission on Science, Innovation, and Technology.

Research universities and their partnerships with industry, including an institution’s research capacity, are important elements to building a state’s economy as well as the national economy and talent pipeline and workforce.

As voters head to the polls next week, some will be deciding the fate of innovation and development-related initiatives, while voters in Kentucky, Louisiana and Mississippi will be voting in gubernatorial elections. The initiatives include a possible additional $3 billion in Texas for cancer research. And in Louisiana, Mississippi, New Jersey and Virginia, legislative chambers are holding regular elections. Those races and initiatives are covered below.

State ballot initiatives  

Colorado

In 2019, the administrations and legislatures in many states grappled with if and how to adjust state economic development initiatives to leverage the federal Opportunity Zone (OZ) program. The actions of 12 states that implemented new activities are described below.

Governors are continuing to roll out their state of the state addresses and this week’s SSTI review highlights differences in the states economies: while Arizona is enjoying population growth Vermont is struggling to attract workers. More states are focusing proposals on climate change and clean energy initiatives, with New York proposing a $3 billion bond initiative to build resiliency, and Colorado, New Jersey and Vermont proposing clean energy and climate initiatives as well.  Rural broadband, higher education and workforce initiatives also are throughout the state addresses.

With nearly 40 of the state governors now having given a state of the state or budget address, innovation themes continue to echo in their reviews of past accomplishments and plans for the coming year.

When Gov. Janet Mills addressed the United Nations General Assembly on Sept. 23, it was the first time a sitting governor of Maine has been asked to address the body. She had been invited as part of her participation in the UN Climate Action Summit 2019, and has made tackling climate change and embracing renewable energy key priorities of her administration. She is not the only governor stepping into the role where the federal government has backed out.

Faced with the sudden, unprecedented fallout from the COVID-19 pandemic, Gov. Ned Lamont last month launched a new resource to provide workers and businesses in Connecticut with career tools, including partnering with Indeed and workforce training providers.

Educating the next generation of workers, ensuring they will have the skills necessary for the jobs of the future and paying attention to the actions that will affect the climate are all on the agendas of the latest round of governors giving their state of the state and budget addresses. A focus on skills can be seen in addresses from governors in California, Maine, Michigan, Oklahoma and Pennsylvania. States are also continuing with initiatives to forward attention on climate change, as reflected in Maine’s climate agenda and Michigan joining other states in the Climate Alliance.