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.
Click here to read more via the Bizjournals.