The Maryland General Assembly passed a bill that would establish a Maryland Technology Development Corp. (TEDCO) fund to promote job growth and minority inclusion in the sciences.
Both chambers passed House Bill 781 earlier this month, which establishes the Equitech Growth Fund to send state funding to projects that expand the economy through infrastructure investment and create a diverse workforce through job training programs. The bill, which is awaiting Gov. Wes Moore's signature, would require $5 million annually in the state budget from 2025 through 2033 to pay for the fund. A spokesperson for the governor did not immediately say whether Moore would sign the bill when contacted Thursday.
The fund would invest in public, nonprofit and private entities to attempt to stimulate employment opportunities in the technology industry. The specific mechanics of the fund, such as what stage of companies it will focus on, and whether the fund will give out money in a specific ratio of loans, grants and/or equity investments, is still undecided, TEDCO CEO Troy LeMaile-Stovall said.
A 2023 report by TEDCO found that Maryland's job growth in the high tech industry lags behind other states, ranking 28th in the country in annual job growth rate in the sector at 1.6% annually over the past 10 years. The report says that, while Maryland is the country's 15th largest economy by gross domestic product (GDP), the state's GDP growth is below the national average and "Maryland's high-tech industry will need to grow much faster to increase Maryland's real GDP growth rate over the next 10 years."
"The governor has said it best: We are asset-rich, but strategy-poor," LeMaile-Stovall said.
The bill will also create an Equitech growth commission that will oversee the fund and develop wider strategies for Maryland job growth. The commission will be made up of government officials from TEDCO and the public school system, along with university leaders and members of the state’s business community. The bill requires the commission to develop a long-term plan and 10-year goals for growing the state’s technology economy.
The state's investment of a total of $40 million over eight years is much less that the original budget in the bill of $250 million and TEDCO’s previous goal of a $500 million fund. LeMaile-Stovall hopes to leverage private investment to grow the fund alongside the state money.
“We need to make sure that the private sector is fully engaged. It's just not about money from the state,” LeMaile-Stovall.
In its report, TEDCO calls for Maryland to pivot its focus toward manufacturing in the high-tech industry, as research and discovery jobs do not employ people without college degrees in large numbers. Manufacturing jobs can be easier to obtain because applicants can be trained through certification programs and not just college degrees.
LeMaile-Stovall emphasized that the fund will be led by the private sector, as with Maryland being a smaller state, much of its land is already in the hands of private entities.
“They know where the opportunities are,” LeMaile-Stovall said.
