About the Progressive States Network

The Progressive States Network was founded in 2005 to drive public policy debates and change the political landscape in the United States by focusing on attainable, progressive state actions. The Progressive States Network advances this agenda by providing coordinated research and strategic advocacy tools to forward-thinking state policymakers, legislative staff, and non-profit organizations. We function as a meeting space for progressive legislators, activists, and citizens, and serve as a hotbed of information exchange. We track legislation in all 50 states, helping to spark change across the country. We make it easier for people to learn more about how to get good ideas passed into law – and how to take power into their own hands.

Progressive States Task Forces

Progressive States works with the following organizations and additional allies in developing these policies. We work with these groups to provide support to state legislators and campaigns seeking to enact these policies into law.

ACORN

AFL-CIO

AFSCME

Americans for Health Care - SEIU

America’s Agenda

Apollo Alliance

Center for American Progress

Center for Housing Policy

Center On Wisconsin Strategy (COWS)

Citizens for Tax Justice

DEMOS

Economic Policy Institute

Community Catalyst

Families USA

Herndon Alliance

Northeast Action

UC Berkeley Center for Labor Research

Universal Health Care Action Network (UHCAN)

Federation of State PIRGs

Free Press

National Caucus of Environmental Legislators

Smart Growth America

Gamaliel Foundation

Labor Project on Working Families

Mobility Agenda

Moms Rising

Multi-States Working Families Consortium

National Employment Law Project

National Housing Conference

National Partnership for Women & Families

National Women’s Law Center

People for the American Way

Public Campaign

PolicyLink

Smart Growth America

Service Employees International Union (SEIU)

Urban Land Institute

Progressive States Board of Directors

Joel Barkin, Executive Director

Texas Rep. Garnet Coleman, Co-Chair

David Sirota, Co-Chair

Sen. Joe Bolkcom, Iowa Senate

Wes Boyd, Moveon.org

David Brock, Media Matters for America

Anna Burger, SEIU

Rep. Morgan Carroll, Colorado House of Representatives

Sen. Spencer Coggs, Wisconsin Senate

Steve Doherty, Former Montana Senate Minority Leader

Leo Gerard, United Steelworkers

Lisa Seitz Gruwell, Skyline Public Works

Del. Tom Hucker, Maryland House of Delegates

Steve Kest, Executive Director, ACORN

Ned Lamont, Campus Televideo

Sen. Nan Orrock, Georgia Senate

Rep. Hannah Pingree, Maine House of Representatives

John Podesta, Center for American Progress

Lee Saunders, AFSCME

Ben Scott, Free Press

Rep. Kyrsten Sinema, Arizona House of Representatives

Naomi Walker, AFL-CI0

For More Information

For more information on policy options discussed in this program or for help in your states, look for additional
details in coming months at www.progressivestates.org and feel free to contact: Nathan Newman Policy Director 212-680-3114 nnewman@progressivestates.org

 

 

 

Table of Contents

 

 

BROADBAND AND TECHNOLOGY INVESTMENTS

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Broadband – high-speed Internet – has the potential to transform the way we live, learn, work and play, and the power to be a galvanizing political tool, uniting progressives across the nation. Combined with investments in digital inclusion programs that are needed to prepare the next generation of workers, and public investments in local technology, states can incorporate technological advancement as a key part of a progressive economic growth agenda.

High-speed Internet has been one of the most transformative communication technologies in human history; just as important as other traditional public goods or infrastructure investments. It is no longer a luxury—but a public necessity. With universal and affordable high-speed Internet, states can leverage technology as an economic development tool and a means of providing better healthcare services, smarter environmental policies, and greater educational opportunities. As this packet will demonstrate, promoting increased access to and adoption of high-speed Internet, will not only provide many societal benefits, but can unite economic development experts, healthcare advocates, environmentalist, labor unions and educators.

Unfortunately, nearly 20 million Americans today do not have access to a single high-speed Internet provider, and even more are currently priced out of the market. In fact, only 50 percent of American households subscribe to broadband Internet. This number shows how unprepared Americans are for the technology age in which they live. A closer look at the numbers reveals that access and use of the Internet is heavily weighted toward the upper echelons of society. Certain demographics have effectively been left out of the digital renaissance. A study conducted in 2007 found that geography, income, ethnicity, education and age all impact high-speed Internet adoption.

Source: US 2007 Census

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While the U.S. has struggled to combat our nation’s digital divide, other countries have instituted serious deployment plans and regulatory schemes to ensure wide-spread adoption of broadband Internet. Today, our European and Asian counterparts greatly outpace us in development of high-speed Internet infrastructure. For the second year running, the U.S. ranked 15th among the 30 members of the Organization for Economic Cooperation & Development in terms of high-speed Internet adoption. Additionally, U.S. broadband Internet providers often charge higher prices for slower connection than providers in many developed nations.

 

Table1.ai International Comparison: United States Broadband Decline; Source: OECD 2007

The lack of effective federal government action to date should compel states to bridge the digital divide. States need to create policies to promote access to and utilization of high-speed Internet and related applications. Technology is our greatest partner and asset as we work to conquer the challenges that threaten our future. Universal affordable high-speed Internet:

The key to advancing the widespread adoption of high-speed Internet in the states is to promote universal, affordable high-speed Internet, fund digital inclusion programs, educate leaders and the public on how to utilize high-speed Internet for economic and social benefits, and to support local investment in technology based growth.

The benefits of high-speed Internet, laid out in this packet, are clear and overwhelming. Yet, to achieve wide-spread adoption of high-speed Internet, resources must be provided from public funds or public/private partnerships. Despite claims by telecommunication providers that the market will deliver these benefits to everyone, the reality is that state leaders need to leverage funding and public rights of ways as a means to bring build-out to under-served and un-served areas, provide affordable access for low-income families, and to establish regulatory oversight to protect consumer rights. Further, state leaders need to make sure that all of their residents are provided with both the digital skills and capital investments needed to take full advantage of this new communication technology.

 

General Resources for Broadband Buildout and Technology Investments:

  • Free Press - Accessing the Current Digital Divide Brochure
  • Educause White Paper - A Blueprint for Big High-speed InternetOECD - OECD High-speed Internet Portal
  • Household Census Information 2007
  • National Governors Association - States Take Action to Expand Access to High-speed Internet Communication
  • Leadership Conference on Civil Rights - Solving the Persistent Problem of the Digital Divide
  • The Baller Herbst Law Group - Capturing the Promise of Broadband for North Carolina and America
  • States and Local Investments - Community-Wealth.org
  • National Association of Seed and Venture Funds

 

 

Universal And Affordable High-Speed Internet

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In the last few years there have been major changes in the telecommunications environment. There is growing recognition by the public sector, businesses and communities that telecommunications infrastructure and services play an important role in economic transformation, sustainability and social well-being. The rise of more advanced Internet technologies has increased the demand for infrastructure far beyond the level previously needed. Today, we are faced with the challenge of getting universal, affordable high-speed Internet deployed, especially to under-served and un-served areas.

In order to achieve universal and affordable high-speed Internet, states must implement intertwining policies that increase access to and adoption of high-speed Internet. To achieve this goal, states need to identify where access to high-speed Internet currently exists, develop deployment strategies to increase high-speed Internet infrastructure, implement digital inclusion programs and support policies that ensure community and consumer protections in infrastructure build-out.

Map High-speed Internet Infrastructure

Today, a major digital divide exists between those who have access to high-speed Internet and those who lack access and / or the capability to use, high-speed Internet. Too many Americans, especially those in rural areas or low-income households do not have any Internet access, let alone high-speed Internet access. Mapping high-speed Internet availability and adoption, and making that information accessible to the public is an important tool for legislators and local planning groups that wish to evaluate the current status of their states’ high-speed Internet infrastructure and utilization. Such information is key when determining where to dedicate future resources when developing
deployment strategies.

The Federal Communications Commission (FCC)—the federal government agency tasked with mapping high-speed Internet infrastructure and consumer access—has been under attack for years by critics who claim that its high-speed Internet data collection methods are flawed.

While the FCC was hesitant to change its policies, state lawmakers took matters into their own hands.

Recently, and in large part due to the momentum of state mapping legislation, the FCC finally voted to approve a new high-speed Internet data collection plan, focused on subscription information. Among other things, the FCC will require all carriers to report the number of subscribers by census tract, broken down into speed categories and separated by residential versus business usage. Despite the upcoming improvements in data collection by the FCC, certain important information, such as pricing data, is either not being collected or the Commission is still trying to figure out how to collect it. Another concern is that service providers underlying data will probably continue to be considered confidential. In addition to the subscription data collection, the FCC is now, also
taking comments about how to collect high-speed Internet availability information.

For complete information regarding high-speed Internet availability and adoption, the following information should
be collected:

Some states, such as Washington State, Kentucky, Tennessee, Ohio, West Virginia and Kansas, have created state high-speed Internet mapping programs either through executive order or legislation. These mapping programs have and will continue to pave the way for community leaders and lawmakers to develop more efficient high-speed Internet deployment strategies that focus on both increased availability and adoption. In the future, if more comprehensive information was collected, policymakers and community organizations could better address the digital divide and lack of broadband competition in their states.

Most existing high-speed Internet mapping programs could be improved by relaxing the strict confidentiality provisions that typically prevent the public release of data collected from high-speed Internet service providers. Many advocates and community organizations feel providers cannot be held accountable for assuring that the data collected is fully accurate without some form of public oversight. In California, underlying mapping data was aggregated by a neutral third party entity. The California task force alleviated service providers’ concerns that any public release of their underlying high-speed Internet infrastructure data would be given as trade secrets to competitors negatively affecting their business, yet preserving some public oversight, by having data collected by a third-party agency, not the public.

State efforts should therefore focus on mapping the data that the FCC is missing, creating user friendly websites, preferably with searchable databases, that will allow the public access to the information collected, using the federally collected data to develop deployment strategies and working with service providers to establish some form of authentication or public release of the collected data.

 

See Also:

FCC Mapping Order

Progressive States, Mapping and Deploying High-Speed Internet

California Broadband Taskforce

Communication Workers of America - SpeedMatters: Affordable High-Speed Internet for All

Connected Nation

 

Deployment Plans and Partnerships

Once under-served populations are determined, affordable high-speed Internet needs to be deployed to these individuals. The first step to successful deployment of broadband Internet infrastructure is for states to create deployment advisory councils, consisting of diverse stakeholders, to develop a smart deployment strategy.

High-speed Internet advisory councils provide a forum for public/private collaboration and “big picture” policy direction. Any legislation establishing an advisory council should require the council consist of diverse members representing various stakeholders and experts with the express purpose of protecting municipalities’ rights, and establishing clear deployment goals and accountability metrics.

An advisory council should have strong representation from a range of community members, including local community planning groups, public interest organizations, education professionals, health care providers, public safety employees, labor groups, and state and local government leaders. It is crucial that legislation ensures that if telecommunication and service providers are included as part of an advisory council that they are balanced fairly by community voices. Providers should not have enough seats to constitute a voting quorum, since this would open up the possibility of biased findings, and hinder the committee’s ability to protect the public interest. This past legislative session, a few states created high-speed Internet deployment councils, although some of these advisory boards included too many industry representatives:

Further, broadband Internet deployment councils should include language to protect municipalities’ ability to build their own networks. For example, Illinois Senate Bill 2244, the High Speed Internet Services and Information Technology Act of 2008, included a specific statement making it clear that nothing in the deployment council enacting legislation should be construed to limit the ability of any municipality, county, or other unit of local government to undertake local high-speed Internet projects and related functions.

 

See Also:

Final Report of the California High-speed Internet Task Force - State of Connectivity: Building Innovation Through High-speed Internet

Progressive States - Mapping and Deploying High-Speed Internet

Educause White Paper, A Blueprint for Big High-speed Internet

 

Fund Deployment

Many states have created funds to help encourage private sector investment in high-speed Internet infrastructure. These states typically employ matching grants to improve the financial feasibility for service providers to expand operations to previously un-served areas. Other states have issued direct funding
for projects or research, including the creation of public sector entities that use state funds to construct and lease high-speed Internet infrastructure.

Another way states could potentially fund high-speed Internet development and adoption, especially in under-served and un-served areas, is through the use of universal service funds. In the telecommunications context, universal service refers to the practice of providing a baseline level of telecommunications services to every resident of the country. States collect a portion of universal service funds fees on intrastate phone services to help keep phone costs down in rural and urban areas. High-speed Internet is the next generation of telecommunications. It can support telephone services and more advanced applications. Therefore, states should redirect portions of the state universal funds towards supporting high-speed competitive and technology neutral Internet connections, or to help subsidize households who cannot afford a high-speed Internet subscription.

 

See Also:

Progressive States - Mapping and Deploying High-Speed Internet

Educause White Paper - A Blueprint for Big High-speed Internet

National Governors Association - States Take Action to Expand Access to High-speed Internet Communication

Annual Report on the Activities of the ConnectME Authority

California Advanced Service Fund

Vermont Telecommunications Authority, http://www.telecomvt.org/

e-NC Authority

 

Protect Municipal High-speed Internet Networks

Wireless and wired technologies allow municipalities to offer a means to bridge the digital divide. Communities are now building their own wired and/or wireless “Community Internet” systems to provide dependable high-speed Internet connections to homes all across America.

Municipalities seeking to provide affordable high-speed Internet to their residents have had to deal with special interest legislation at the state level designed to shut down municipal networks. In an effort to stifle competition and protect their profits, service providers are pushing bills in state legislatures that would prohibit communities from setting up high-speed Internet networks, prevent competition and undercut local control–even in rural and low-income areas not currently served by large providers. More than a dozen states now have laws on the books
restricting cities and towns from building their own high-speed Internet networks.

New technology is making it ever more possible for cities and towns to improve access to information, provide education and job training, enhance public safety, foster technological innovation, and bolster local economic development. State laws should protect, not block, the development of municipal systems, public private partnerships, and other alternatives that promise to bring the benefits of high-speed Internet to more people.

 

See Also:

Free Press - Community Internet Background

Institute for Local Self-Reliance - Municipal Broadband: Demystifying Wireless and Fiber-Optic Options, Minneapolis Wireless Project

Common Cause - Community Broadband

Digital Access

State Statewide Video Franchising Reforms

 

Statewide video franchising agreements, enacted in many states, have undermined consumer protections previously provided by local franchising agreements. Analysis of the effects of statewide video franchises found that consumers in states that have enacted statewide franchising laws have seen their cable service bills go up 8 to 50 percent, depending on the level of service. Further, consumer’s complaints, in states with statewide video franchising, remain high with 74% of survey respondents reporting no reduction in the level of complaints.

Despite the evidence to the contrary, service providers have argued for years that the streamlined process of statewide video franchises, instead of local franchising agreements, could have benefits for the public; such as slightly increasing competition or facilitating a more strategic statewide universal deployment plan. These providers with interests in breaking into the TV industry, have put intense pressure on legislatures to adopt statewide video franchises. The problem is that industry players oppose the public interest requirements that always have gone hand-in-hand with franchise deals.

In the 2008 session, lawmakers in both Tennessee and Louisiana, joined 17 other states, who have enacted legislation since 2005, to allow statewide video franchises. The legislation in both states reflect the worst of the bad policies from franchise legislation enacted in other states, including minimal, if any, build-out requirements, limits to municipal power and insufficient support to PEG stations.

The negative results of statewide video franchising emphasize how crucial it is that franchise agreements protect consumers and ensure affordable access to high-speed Internet. States must protect community services, build-out requirements and PEG stations.

Build-out Requirements: As legislatures consider franchising legislation, they must confront how companies will be required, over time, to offer service to all communities. The best method to ensure that discriminatory redlining does not occur — and to bring video competition to every household — is to require franchise holders to build-out their services on a reasonable timetable. It is important that states not only specify build-out requirements, but also establish oversight mechanisms to ensure negotiated build-out actually occurs. Some of the best build-out requirement language was proposed in New York A03980, which would have required video service to be provided to half of the state’s consumers within three years and to 85% percent within five years. Companies selecting the state franchise were not allowed to reduce existing service and redlining could bring on fines.

Public, Educational and Governmental Channels: Public Educational and Government (PEG) channels are often the only remaining media outlets that broadcast local voices, cover local issues, and show exactly how local governments work. They also allow for targeted programming to reach particular segments of the community that might not be served by major outlets. In order to protect PEG stations, states must first ensure that statewide video franchises do not reduce or eliminate PEG funding and support. It is also important that states include regulations in statewide video franchising to ensure providers carry PEG channels on the most basic tier of service so that the channels are accessible to any individual with a television, regardless of income level or cable package. Michigan legislators, in an attempt to keep PEG on the basic tier, drafted HB 5693, to require that cable providers keep their government channels available to subscribers without requiring the need for additional equipment (unfortunately the provision would only apply until 2009 when all channels go digital, and thus customers would be at risk to lose access to PEG stations on a basic service level after the digital transition). Michigan’s amendment uses language similar to that in California’s state video franchising legislation,
AB 2987, which required that PEG channels be receivable by all subscribers.

Protecting Municipality Power, Community Benefits and Consumer Protections: Statewide video franchising legislation should protect municipalities’ rights to provide high-speed Internet to their residents, allow local communities to collect or share in franchising fees, and provide consumer protection mechanisms that provide fair outlets for customer service complaints.

Some state legislators have taken steps to rebut the negative trend of statewide video franchising legislation. In Minnesota SF 3337 directs the Department of Commerce to request a study to analyze the impact of enacted statewide video franchising legislation in at least three states. This thoughtful approach ensures that before Minnesota takes any action, legislators have accurate information on the potential effects of statewide franchising and what consumer and municipal protections must be included. In Maine, legislators developed Model Municipal Franchise language that has a large portion of the terms
already agreed upon by telecommunications companies and ensures that local communities negotiate for important consumer protections. The model bill is an attempt to streamline the franchising process without circumventing municipal power and community benefits.

 

See Also:

New Rules Project - Information Sector Policies

Educause White Paper - A Blueprint for Big High-speed Internet

National Association of Telecommunications Officers and Advisors (NATOA) - Understanding the Impact of State Video Services Legislation

Free Press - Video Franchising

Telecommunications Advocacy Coalition - Why Local Control?

Alliance for Community Media

Consumers Union, Elements of Consumer Friendly State Franchising Legislation

 

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Increase Technology Literacy & Inclusion

The digital divide is a term commonly used to refer to the gap in high-speed Internet access between the general population and certain demographics, particularly low-income households and racial minorities. The term, however, also refers to imbalances
in the resources and skills needed to effectively participate as a digital citizen.

In order to accomplish digital inclusion, states need to look beyond simply investing in physical infrastructure. Low income individuals and people of color, groups that are frequently disenfranchised in other parts of society, often have fewer opportunities to gain essential digital skills. Aside from being left out of the technological age, individuals without necessary digital skills may soon find themselves unqualified for many employment opportunities. Most workforce professionals acknowledge the critical role that IT skills—everything from basic literacy to more dynamic “knowledge economy” skills—play in successful job seeking. Today, according to Department of Labor statistics, over 80% of new jobs will require computer skills. Past studies have shown that there is a great mismatch between adults entering the labor market and the technology skills that are required for work.

Along with high-speed Internet adoption, states need to address the issues ofdigital empowerment and digital opportunity. By funding community technology centers, residents can gain essential digital literacy skills, crucial work force training, increased utilization of alternative media and greater access to civic information. These technology literacy programs have the potential to bridge not only the digital divide, but the social and economic divide in states.

 

See Also:

WorkOne Employment Centers to offer digital literacy skills

Workforce Development & Community Technology Programs

 

Core Policies to Increase Technology Literacy & Inclusion:

Fund Community Technology

Prepare Children for the 21st Century

Support Alternative Media

 

Fund Community Technology

Strengthening the national network of community technology centers will create real-world technology training for the next generation. Community Technology (CT) is the purposeful use of computers, Internet, and digital communication systems by non-profit and community-based organizations to enhance the delivery of mission in a way that helps people develop technology literacy skills through beneficial, hands-on interaction with technology.

Some states such as California, Illinois and North Carolina, have established a fund or council to address the digital divide. Washington State has recently taken aggressive steps to increase digital literacy. The Washington State legislature allocated $500,000 to support Washington’s Community Technology programs. Senate Bill 6438 created a statewide high-speed Internet development process and established the Community Technology Opportunity Program (CTOP) that will provide resources for capacity-building for and grant-giving to Community Technology programs that provide hands-on technology access and training to residents. Additionally, the legislation calls for a work group to develops a high-speed Internet deployment and adoption strategy through a multi-sector work plan, as well as the development of a statewide web directory of public facilities that provide Community Technology programs.

In order to ensure residents obtain the necessary training to be successful in the 21st century, states should:

 

See Also:

 

Prepare children for the 21st century

Children are tomorrow’s workforce. Therefore, it is imperative that in their education, they receive instruction on necessary digital skills. In order to ensure that children from all backgrounds receive the necessary training to be able to participate in an increasingly digital world, states should promote digital skills as a priority for children. Digital literacy programs should be integrated into classrooms, after-school programs, and at libraries or other places children spend their time. In order to increase digital literacy among children, states should:

Equip children with digital tools at home. Provide financial incentives to help low-income families acquire home computers and affordable high-speed Internet; and encourage their use at home to pursue educational, health, and other opportunities for youth.

Support parents in today’s technology-based world. Support the development of model digital literacy efforts, and other technology training to help parents guide their children wisely in the online world.

 

See Also:

 

Support Alternative Media

State money should support public access channels and alternative online media to amplify the voice of marginalized and under-represented communities in our democracy. Continuing support for public, educational and governmental (PEG) access channels, some of the only remaining media outlets that broadcast local voices and cover local issues, will allow for targeted programming by and for particular segments of the community that might not be served by major outlets. States should also teach residents how to utilize new technological mediums as a vehicle to be heard. Advances in high-speed Internet technology will open up ways for local communities to create online content, with dozens if not hundreds of audio and video streams. Unfortunately, much of the legislation being proposed in statehouses threatens the existence of such a potentially powerful local medium.

 

See Also:

 

Core Universal and Affordable High-speed
Internet Policies:

Map High-speed Internet Infrastructure

Deployment Plans and Partnerships

Fund Deployment

Protect Municipal High-speed Internet Networks

State Statewide Video Franchising Reforms

 

Leverage Technology For Economic Development, Health,

Energy And Educational Opportunities

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Finding funding for high-speed Internet in state budgets can be a daunting task, but the rewards of potential greater economic growth, more accessible health care, energy savings and increased educational benefits make the investment more than worth it.

Core Policies to Leverage Technology:

Economic Development

Telehealth

Energy Savings

Distance Learning

Invest in “Domestic Emerging Markets”

Strengthen Regional Cooperation

 

Economic Development

Wide-spread adoption of affordable high-speed Internet can be a key tool to rejuvenate lagging economies and sustain state commerce. It is estimated that widespread adoption of high-speed Internet will add $134 billion to the U.S. economy annually and create 1.2 million new jobs per year. Further, high-speed Internet can be key to drawing new businesses to an area, no matter how remote or small. As evidence of the impact of high-speed Internet on individual communities, a recent study found that for every 1% point increase in state high-speed Internet penetration, employment is projected to increase by 0.2% to 0.3%. Further, the availability of high-speed Internet in communities added over a 0.5% increase in the growth of business establishments.

The following are a few programs working to leverage this economic benefit from high-speed Internet:

 

See Also:

 

States can help make health care more accessible and affordable by utilizing modern day technology. By merging technology and health care, state policymakers can create new opportunities for medical professionals and patients to interact in more efficient ways. The use of technology in health care – often called telehealth – employs high-speed Internet applications to remotely monitor patients, facilitate collaboration between medical professionals, exchange medical data and images, and instantaneously provides efficient emergency service to remote areas. The potential benefits of telehealth include saving lives, increasing access to and quality of medical services, providing better treatment for chronic illness and reducing medical costs.

Although telehealth has been around for years, its promises have not been truly realized. The obstacles to achieving the full potential of telehealth include the lack of widespread high-speed Internet technology, the way in which Americans pay for health care, and how physicians are regulated by the government.
Key policies that address these barriers to the adoption of telehealth include:

 

Pic2.psdSource: the.honoluluadvertiser.com

 

See Also:

 

High-speed Internet can be a crucial tool in cutting Americans’ energy costs through promoting telecommuting and more efficient energy use at home and in the office. Interactive monitoring of homes and offices can help to reduce greenhouse gas emissions and our carbon footprint while offering large economic payoffs.

For example, optimizing the management of energy supply and demand means a reduction in the likelihood of crippling regional blackouts or the need for keeping costly reserve power plants online. It is predicted that wide adoption and use high-speed Internet applications can achieve what many estimate is a net reduction of one billion tons of greenhouse gas over ten years, which, if converted into energy saved, would constitute 11% of annual U.S. oil imports.

States should promote telecommuting: High-speed Internet access is essential for enabling more Americans to occasionally work from home, commonly referred to as telecommuting. It is estimated that telecommuting may create over $20 billion of savings annually across the economy, by allowing businesses to save on physical space and related expenses and employees to spend less time commuting (better for environment and productivity). For example:

A number of states are moving policies that recognize the benefits of telecommuting:

In Virginia, lawmakers codified the Office of Telework Promotion and Broadband Assistance, which aims to encourage telework as a family-friendly, business-friendly public policy that promotes workplace efficiency and reduces strain on transportation infrastructure.

New Mexico Governor Bill Richardson signed an executive order creating the State of New Mexico Telework and Alternative Work Schedule Program. The executive order called for technology improvements to increase productivity and support teleworking in State government.

Connecticut, Vermont, and New York considered legislation, which if passed, would have required states to study, develop or implement guidelines authorizing telecommuting and work-at-home programs for state employees or study the benefits and other impacts of teleworking.

States considering legislating telecommuting and alternative work programs should ensure that such policies are structured to protect workers against violations of overtime or other labor laws.

 

See Also:

 

Reduce energy usage with smart technology: Interactive control of home appliances and their interaction with the overall power grid, can produce significant energy savings. Electricity that flows in the home and workplace are currently device-focused, so more precise control and “time shifting” can significantly lower demands on the power grid. Consumers could save nearly $23 billion a year if they shifted just 7 percent of their usage during peak periods to less costly times, according to research by Carnegie Mellon University.

With new technology, appliances can be turned off during periods of high electrical demand and give customers real-time information on constantly changing electric rates. The goal is to use advanced, information-based technologies to reduce consumers utility bills, increase power grid efficiency, reliability, and flexibility, and reduce the rate at which additional electric utility infrastructure needs to be built. States are promoting use of smart technologies and innovative utility pricing mechanisms are currently being used by several utilities in small applications, mainly for testing purposes.

 

Pic3.psdSource: http://www.energy.gov.on.ca/images/ami_diagram_june06.

 

Create a Smart Grid: State leaders are increasingly focused on creating a smart energy grid, which would integrate advanced functions into state’s electric grids in the hope of reducing carbon emissions. These advancements will be achieved by modernizing the electric grid with information-age technologies, such as microprocessors and advanced computing technologies. Such changes will help the system “self-heal” during power disturbances or physical attack, accommodate alternative generation and storage options, and enable new services and markets.

 

See Also:

 

Distance Learning

States should promote distance learning programs to increase educational opportunities for residents. With ubiquitous high-speed Internet access, students from any geographic location and income level can take advantage of otherwise unattainable educational and job training opportunities. One strong model was in Idaho where HB 543 was enacted in part to promote a statewide coordinated and funded high-bandwidth education network. Legislators hope, among other things, that the “Idaho Education Network (IEN)” can be a coordinated, statewide telecommunications distribution system for distance learning in each public school, including two-way interactive video, data, internet access and other telecommunications services. Further, the Idaho Digital Learning Academy (IDLA), a state sponsored, accredited, on-line virtual school created through the Idaho state legislature, is designed to increase educational opportunities and choices to all Idaho students regardless of learning ability, income, or geographic location. IDLA provides a high quality public school education, aligned with state achievement standards, utilizing the Internet and innovative educational methods of delivery.

 

See Also:

 

 

Local Investments for Technology-Based Growth

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In an increasingly global economy, states struggle to decide which policies will encourage the growth of high-value local jobs and high-technology industries that can compete on the international playing field. Too often, state economic policy reduces to desperate bidding by states to offer tax subsidies to businesses that will relocate to their state, a failing strategy that usually accomplishes little other than draining state budgets.

Investing in 21st century broadband infrastructure is a far better use of public funds. States can capitalize on infrastructure build-out through local investments that nurture existing firms and local industry startups that, with the right support, can become the anchors of long-term economic growth. Technology transfers from local universities and community investments can tie together industrial “clusters” of firms that, in turn, can encourage the kind of long-term, high-value jobs needed in our communities to compete in the global economy. Further, by directing some of those investments to the “domestic emerging markets” of low-income communities and better coordinating overall economic development, states can assure that technology investments deliver economic prosperity for everyone.

 

Core Policies for Local Investments for Technology-Based Growthy:

Invest State Funds in Technology Startups

Encourage Technology Transfer from Universities

Strengthen Industrial Clusters

 

 

Invest State Funds in Technology Startups

States are increasingly unwilling to rely on volatile global investment markets to spot local opportunities for growing new businesses, but instead are acting to directly invest themselves in technology opportunities. As of 2006, all but six states had state venture capital funds, putting $5.8 billion annually into in-state business ventures, according to the National Association Seed and Venture Funds (NASVF).

The great advantage of such direct investment is that, instead of just raiding the state treasury to give away corporate welfare, states can use such venture funds to create a financial stake in firms. If these businesses are successful, they will return equity to the taxpayers that can then be reinvested in additional firms. Such investments also can cement those firms in a web of local relationships that encourage broader spin-off effects for the local economy.

State venture funds come in a variety of forms, usually involving some combination of state investments, university involvement and cooperation with private firms.

An emerging key source of venture capital for such investments are state pension funds:

See Also:

 

Encourage Technology Transfer from Universities

Many state venture funds are part of policy programs aimed at encouraging university research to spin-off into business startups and jobs in surrounding communities. As a National Science Foundation study recently emphasized, even smaller universities are playing a vital role in local job creation. Technology transfer licenses have doubled in the last 10 years and universities have had $1.6 billion in income from licenses to corporations and startups in 2005.

These local university ties can create businesses loyal to the local economy far more effectively than typical tax giveaways. States are using a number of tools to encourage technology transfer on a more regular basis, from creating dedicated tech transfer investment vehicles, to encouraging university research parks, to special tax credits related to technology transfer.

Dedicated Technology Transfer Investments: The Maryland Technology Development Corporation (TEDCO), was established by the Maryland General Assembly in 1998 to provide seed capital and business assistance to encourage technology transfer from research universities and federal laboratories to local startups. The program has been so successful that TEDCO was recognized as the most active early/seed stage investor in the nation in the July 2007 issue of Entrepreneur Magazine. Similarly, Florida has been investing directly in attracting new biotech research organizations, and Arizona has appropriated $135 million for five years of funding for the Science Foundation Arizona, which is aimed at leveraging state technology resources to spur innovation and new high-technology jobs.

Other regional groups, such as the Midwest Research Universities Network, help universities share best practices on working with venture funds to develop local technology transfer.

University Research Parks: 300,000 workers in North America are employed at a university research park and generate an additional 2.57 jobs in the broader economy, according to a report by the Association of University Research Parks. These research parks encourage businesses to take advantage of university research assets and employ university graduates, thus helping to nurture startup firms and ideally integrate them into the broader local economy.

Tax Credits for Technology Transfer: While many state tax credits end up being little more than corporate tax avoidance schemes, Oregon recently introduced a creative new approach– a 60% income tax credit for donations to state university programs that commercialize university research. A number of businesses have given donations to state universities based on the program. The bonus for the state’s taxpayers is that any credits that result in income for the universities through royalties and licenses will be repaid to the state, feeding an “evergreen” endowment to fund future tax credits and thereby limiting the long-term expense of the tax break to state taxpayers.

 

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Strengthen Industrial Clusters

Beyond supporting individual technology firm startups, states are increasingly looking to support interrelated “clusters” of firms that reinforce innovation in a region around specialized industries, much as the car industry grew up in Detroit, the film industry in Los Angeles, finance in New York City, and as a paradigm of the high-tech economy, Silicon Valley became a source of ongoing computer-related innovation.

States can play a critical role in promoting such clusters beyond supporting university research and funding new startups by identifying key local assets, facilitating relationships among firms, deepening the talent pool, and encouraging investments that reinforce those cluster needs—a point emphasized by the National Governors Association in a recent report, Cluster-Based Strategies for Growing State Economies,.

A recent example includes “life sciences clusters”, such as Massachusetts Gov. Deval Patrick’s ten-year $1 billion Massachusetts Life Sciences Initiative and new hubs of “clean tech” alternative fuel clusters in Silicon Valley.

States need to avoid the danger of quickly endorsing the latest technology fad and handing out tax credits without real returns or accountability provisions, rather than carefully assessing their own local strengths and supporting the specialized industries
that can give their regional businesses a unique advantage in the global economy.

 

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Invest in “Domestic Emerging Markets”

Policy leaders should be critically concerned with using these new tools to revive areas devastated by deindustrialization and chronic poverty. Around the world, “emerging markets” are hotspots for investment, so many states are treating their low-income domestic areas as “domestic emerging markets” that just need a bit of patient capital in order to be revived.

Back in 2000, California State Treasurer Phil Angelides laid out the philosophy that is the basis for the new wave of tough-minded investment in “The Double Bottom-Line: Investing in California’s Emerging Markets.” Whether the investments are in high technology or in urban revitalization, these state investments deliver economic returns that are measurable on the financial bottom-line. One study found that eight large public pension funds had more than $3 billion invested in urban development projects, and have helped leverage private equity partners that have validated their economic returns.

State government and public pension investments are part of the broader trend of expanding investments in a range of community-based investment vehicles, from Community Development Banks to Community Venture Capital Funds, all designed to increase capital access in communities often starved for the financial capital needed to revive local businesses. The Social Investment Forum highlights the quiet revolution as the assets of community investment institutions have grown from $4 billion in 1995 to $19.6 billion in 2005, a growth of 388 percent in a decade.

In a multi-trillion dollar economy, even these amounts have not been enough to revive all of the communities undermined by deindustrialization and poverty, but their initial success and growth set an encouraging precedent for positive strides in
public policy.

 

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Strengthen Regional Cooperation

Finally, states need to foster cooperation between local jurisdictions to ensure mutual gains from growth, not play a zero-sum game of wasting development dollars luring businesses to move a few miles. Good Jobs First in a series of reports, most recently on Minnesota and Michigan, has highlighted how funds are wasted as development dollars from wealthier suburbs are directed towards raiding jobs from urban centers rather than creating new jobs.

A number of efforts have been launched to encourage more cooperation in regional growth strategies.

In Northeast Ohio, the Fund for Our Economic Future was created by more than 100 foundations, organizations and individuals to work with state and local governments to overcome fragmented economic development in favor of more shared strategies for growth.

With $250,000 in federal grant help, the Golden Capital Network will establish eight regional networks of “angel investors” to support startups. “A lot of economic development activity is city versus city, or it is county versus county. This is a better approach,” said Sandy Baruah, U.S. assistant secretary of commerce, as he awarded the grant.

After bouts of destructive regional revenue loss as municipalities competed in business tax giveaways, Arizona in 2007 enacted HB 2515 to stop towns in Maricopa and Pinal counties from offering tax subsidies to move jobs around from other locations within the region.

 

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Local Investments For Technology-Based Growth

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