Report offers strategies for states to thrive in `new economy'

Friday, February 25th 2000, 12:00 am

By: News On 6

WASHINGTON (AP) -- In the new technology-based national economy, state governments must reinvent themselves to keep skilled workers, entrepreneurs and private investment within state borders, a new report to the nation's governors says.

The report, being released Saturday at the winter meeting of the National Governors' Association, offers a variety of strategies for
states to compete and grow in a "new economy."

Suggestions include turning over some government functions to private companies, re-evaluating taxes and regulations that may
hamper expansion of technological businesses and establishing sites on the World Wide Web to provide government information and services to the citizens.

"It is appropriate at our first meeting of the 21st century that we examinate a dynamic new government that reflects the technological era we are living in today," Utah Gov. Michael O. Leavitt, the association's chairman, said in a written statement.

"Whether we meet the challenge and seize this opportunity will define America's
future."

During the conference, the governors will attend sessions and share ideas on how to spur state economies through technology,
ensure broadband access and examine the impact of a technology-based economy on the environment and natural resources.

The governors are scheduled to meet Monday with President Clinton and Tuesday, the final day of the four-day conference, with members of the U.S. Senate.

Some other recommendations for state governments in the report:
--Decentralize decision-making by getting local groups and institutions involved.
--Consider forming partnerships with private companies, unions, nonprofit organizations, churches and other institutions.
--Invest in higher education in a way that ensures it is market-driven and responsive to the needs of state businesses.
--Create opportunities for development and research within the state's university systems and facilitate commercialization of the
products that result by establishing so-called business "incubators."
--Support work force training to improve skills and to help citizens rise to higher-paying jobs.
--Enhance the state's physical infrastructure to ensure that transportation and telecommunications systems can keep up with
growth.