Beginning in 2003 with its $510 million investment to lure the Scripps Research Institute (see the Oct. 31, 2003, issue of the Digest), the state of Florida has drawn national attention over the past few years for its aggressive pursuit of major life science research institutions. This year, however, it looks like that strategy will have to be put on a temporary hiatus.
 

Upbeat revenue forecasts and shared economic principles have Republican governors in four states requesting more funds for higher education tied to performance metrics or workforce outcomes. Recent budget proposals introduced in Florida, Ohio, Pennsylvania and Texas focus on competing for talent and jobs through efforts to encourage STEM learning and teaching and incentivizing outcomes such as graduating more students in high-demand fields, conducting research and more. College affordability is addressed through measures that would freeze tuition or cap increases.

Unlike last year when a wave of new governors pushed sweeping proposals to re-organize economic development activities and grow the economy, the 2012 legislative sessions brought mostly modest changes for tech-based initiatives. While many programs were level funded or received smaller increases than in previous years, a handful of states increased funds or introduced new initiatives to support economic development efforts.

To continue the momentum surrounding economic gardening, innovation and entrepreneurship efforts that began last year, lawmakers provided level funding and added funds for arts and cultural programs and community-focused workforce initiatives in the FY13 budget. Michigan's higher education institutions will receive a 3 percent increase in funding, which is tied to performance metrics that include R&D expenditures and degree granting in critical skills areas.

Lawmakers last month approved a $19.3 billion state budget for FY13, which includes funding for many of the recommendations from a task force convened by Gov. Nathan Deal to enhance the state's innovation economy. Specifically, the budget boosts funding for the Georgia Research Alliance (GRA) to recruit researchers and allocates $5 million for cancer-related research. The legislature also passed a measure expanding the Georgia Jobs tax credits and R&D tax credit.

While touting broad support from lawmakers for his 2012 legislative agenda during the regular session, Gov. Bob McDonnell also expressed concern about several economic development and education initiatives left out of the 2012-14 biennial budget passed by lawmakers during a special session that ended last month. Just in time for the deadline, Gov. McDonnell submitted $43.9 million in budget amendments, which include restoring funds for research, life sciences and teacher recruitment.

Lawmakers last week passed the 2011-13 biennial budget, providing $12 million for the state's Centers of Research Excellence program. Although it is less than Gov. Jack Dalrymple's request of $20 million to expand the program and provide additional funding for three new centers, the legislature's appropriation will allow for continued investments in infrastructure and research capacity at a time when many states are reducing funding for TBED to help fill budget deficits.

Lawmakers approved Gov. Tom Corbett's proposal to restructure the state's economic development efforts by consolidating several programs within the Department of Community and Economic Development (DCED). Total general fund spending for DCED in FY12 is $212.8 million, down from $327.5 million last year or a 35 percent reduction. Much of this is achieved through consolidating programs.

The 10 regional councils established earlier this year to stimulate economic development and improve the business climate statewide are tasked with five primary responsibilities, and can compete for funding from a pool of $1 billion to support projects they determine to be a part of their regional strategy. Gov. Andrew Cuomo recently unveiled a blueprint for how the councils will operate with information regarding resource allocation, structure and leadership, and performance measurement.

Gov. Andrew Cuomo announced plans to direct $200 million in existing funds to establish 10 regional economic development councils to allocate funds and provide business assistance programs across the state. At the same time, the governor would consolidate programs supporting high-tech companies currently administered by the New York State Foundation for Science, Technology and Innovation (NYSTAR) with the Empire State Development Corporation (ESDC) — a move he says will eliminate duplicative functions and save the state $1.9 million in the coming year.

Deep cuts to higher education and reorganizing economic development efforts are common themes in executive budget proposals across most of the country as governors seek to both reduce spending and create jobs. Iowa Gov. Terry Branstad recently introduced legislation to replace the state's existing economic development agency with a public-private partnership. Meanwhile, his budget eliminates the Iowa Power Fund, established by the legislature in 2007 to invest in private sector renewable and alternative energy industries. In Massachusetts, Gov.

Gov. Martin O'Malley last week unveiled details of his proposed $100 million venture fund announced last year during his re-election campaign as an initiative to grow the state's knowledge-based industries, particularly within the life sciences sector (see the June 9, 2010 issue of the Digest).

While seeking to spur economic growth through new investments in university-based research, Gov. Sam Brownback also proposes to consolidate the efforts of a longstanding program recognized for creating high-wage jobs and diversifying the state's economy. Under the governor's FY12 budget proposal, many of the programs currently managed by the Kansas Technology Enterprise Corporation (KTEC), which provides dedicated support for researchers, entrepreneurs and technology companies, would be transferred to the Department of Commerce.

With no significant boost in funding for Michigan's economic development efforts proposed in the executive budget, Gov. Rick Snyder outlined steps to reform the way businesses are incentivized and modify the state's approach to job creation by better supporting local and regional initiatives as a means to transform the state's economy.

Gov. Bill Haslam is the latest governor to unveil a broad-based proposal to grow the state's economy and create jobs through investments in S&T by asking lawmakers to dedicate $10 million for a research consortium that would recruit senior scientists to advance scientific discoveries into commercial applications and spur high-growth companies.

Gov. Tom Corbett's budget proposal for the upcoming fiscal year funds many of Pennsylvania's longstanding efforts to grow a technology-based economy, but at a reduced level. At the same time, the governor outlined new initiatives and investments centered on a restructured Department of Community and Economic Development (DCED) that he says will eliminate duplicative programs and better position the state to attract businesses for job creation.

The FY12 Business, Economic Development and Labor budget approved by lawmakers includes $25.7 million for USTAR, the state-funded initiative to grow a knowledge-based economy. This is the same amount recommended by Gov. Gary Herbert, but down from FY11 projected spending of $35.4 million. That amount included some ARRA funding from previous years, however. Research Teams will receive $23 million and $1.9 million is slated for Technology Outreach.

Lawmakers approved many of Gov. Bob McDonnell's proposals aimed at growing Virginia's technology and life sciences industries by dedicating about half of the funding requested by the governor to support R&D, commercialization, SBIR matching grants, and funding for early stage equity investments.

Established to focus solely on job creation and replace the state's Department of Commerce, Wisconsin's new public-private partnership would receive nearly $200 million over the next two years for operating expenses and to administer economic development programs. Lawmakers also will consider measures to improve existing tax programs focused on enhancing angel investments and eliminating capital gains taxes during the upcoming legislative session. Gov.

During the campaign trail and in speeches delivered during their first few weeks in office, governors in Florida and Nevada announced plans to overhaul economic development efforts without providing many details on how the new systems would operate. Draft legislation recently was introduced in the respective states, providing some insight on the structure and governance of the proposed agencies.

Budgets recently approved in West Virginia and Wyoming will dedicate new funds for TBED initiatives in the coming year. TechConnect West Virginia is slated to receive $250,000 for its efforts to develop immediate and long-term strategies to capitalize on the state's technology strengths.