The U.S. House Committee on Ways and Means is continuing its work to develop a consensus on tax reform. Last month, chairman Dave Camp (R-MI) and ranking member Sandy Levin (D-MI) announced that 11 committee working groups would be formed to develop discussion drafts on various aspects of tax reform. Just last week, one of these working groups issued a Discussion Draft on Tax Reform for Small Businesses. While this draft does include a permanent extension of section 179 small business expensing, it limits the deduction to $250,000, as compared to the 2013 limitation of $500,000. We certainly agree that small business expensing should be made a permanent part of the income tax code. However, small businesses should be watchful that tax reform not be used as a means to scale back traditional small business tax benefits.

Besides a few provisions, such as making section 179 permanent, the major aim of the Discussion Draft is to bring consistency to the tax treatment of partnerships and S corporations. Currently, partnership taxation is controlled under Subchapter K of the Internal Revenue Code, while S corporations are guided by Subchapter S of the code. The Discussion Draft would either make some unifying changes to each subchapter or completely replace the existing tax subchapters with a single set of new rules. Unifying the tax treatment of these entities would definitely be helpful to businesses working to determine which tax form to select – partnership or S corporation. On the other hand, such an overhaul of the tax treatment of existing small businesses could result in additional compliance costs for small businesses associated with converting to the new tax regime.

What is missing in this Discussion Draft is a real attempt to lessen either small business tax compliance or burden costs. CompTIA is working to develop comments on the Discussion Draft, which are due on April 15. As always, we welcome your comments or recommendations on what Congress can do to lessen your tax compliance and burden costs. 

With the re-election of President Obama, a net one seat pick-up for Senate Democrats, and with Republicans maintaining control of the House, we can expect to see some of the same IT issues emerge during the lame duck and the 2013 legislative session that we saw in the last Congress. 

First, the issue of cybersecurity reform emerged as a post election lame duck issue.  There is a distinct possibility that the White House may issue an Executive Order on Cybersecurity that would mandate owners and operators of critical infrastructures to share their information about cyber threats and attacks with the Department of Homeland Security.  If such an order is issued it is not clear that would entirely circumvent a legislative approach.  In fact, in the Senate, Majority Leader Reid’s office stated the day after the election that he would renew efforts to push for cybersecurity reform with perhaps the reintroduction of the Senator Lieberman cybersecurity bill.  In the event that it were to be brought up for consideration, the Democrats do not appear to have the 60 votes necessary to overcome a filibuster, and so it seems unlikely that cyber legislation will pass during the lame duck session.

Second, earlier this year the National Telecommunications and Information Administration, which serves as the President’s advisor on IT public policy issues, initiated a series of meetings focused on developing a set of enforceable mobile privacy rules of conduct for the mobile app industry. (http://www.ntia.doc.gov/other-publication/2012/privacy-multistakeholder-process-mobile-application-transparency).  These efforts will continue into 2013 with the goal of launching a new regime for mobile privacy rules of conduct.

Third, during the month of July, 2012, the President’s Council of Advisors on Science and Technology (PCAST) issued a report on “Realizing the Full Potential of Government-Held Spectrum to Spur Economic Growth.”

The report cited the burgeoning demand for additional spectrum and the need for streamlining regulations for freeing it up.  Consequently, we should expect the Federal Communications Commission to move more aggressively toward expanding the availability of unlicensed spectrum and efforts to explore new models for sharing federal spectrum.

Finally, in the House of Representatives, the Chairman of the Subcommittee on Commerce, Manufacturing, and Trade in the 112th Congress, Mary Bono Mack (R-CA), lost her reelection bid.  Similarly, Congressman Dan Lungren (R-CA) who has been very active on cybersecurity matters, has not yet conceded in his re-election bid.  It appears likely that Congressman Goodlatte (R-VA) will become the chairman of the House Judiciary Committee.  Congressman Goodlatte is a tech savvy legislator and this could have impact on issues like privacy.   In addition, Congressman Cliff Stearns (R-FL), Subcommittee Chairman of the Oversight and Investigations lost his reelection bid. Therefore, there will be some shuffling around on the leadership of the various Energy and Commerce Subcommittees.

In the Senate, it is expected that Senator James DeMint (R-SC) will become Ranking Member of the Senate Committee on Commerce, Science and Transportation. Senator DeMint has a “free-market” de-regulatory perspective to technology policy which is likely to provoke interesting debates as the Committee proceeds with its work under the continued leadership of Chairman Rockefeller (D-WV). 

The 2013 legislative session should not yield any seismic policy shifts in IT as compared to the 2012 legislative sessions, but the influx of new faces on committees of relevance could spur a great deal of activity in these defined areas of debate.  The traditional partisan divides will continue to be evident on these issues. 

Last summer, Congress passed the Budget Control Act (BCA) in order to raise the debt ceiling. The BCA dictated that in the event that the Joint Select Committee on Deficit Reduction, which was created by the legislation, was unable to find $1.2 trillion in spending cuts, then across-the-board cuts, or sequestrations, would be triggered. The Committee failed to find the necessary spending cuts and thus, sequestration is currently scheduled to go into effect on January 1st, 2013. Sequestration will be applied to both defense and non-defense spending, as well as to mandatory and discretionary spending in years 2013 to 2021 (there will be limited exemptions). The automatic cuts will equal $1.2 trillion from 2013 to 2021.

Therefore, unless Congress and the Administration see fit to act during a “lame duck” session of Congress – and find an alternative – sequestration will go into effect on January 1, 2013.

The non-partisan Congressional Budget Office and the Office of Management and Budget (OMB) have both established that in order to achieve these savings there will have to be a 9.4 percent cut to defense programs and an 8.2 percent cut to non-defense discretionary spending. While OMB has outlined what programs it anticipates could be impacted, it has not yet provided guidance on how the cuts will be assigned across specific programs.

CompTIA represents the interests of small- and medium-sized IT firms and leads in the area of IT workforce development. With these constituencies in mind, we have reviewed the OMB outline regarding sequestration and have several concerns.

Government as a Consumer of and Partner in Innovation

It is widely anticipated that government contracting could be significantly impacted by sequesteration in both the defense and civilian discretionary accounts. Various estimates put U.S. government annual IT spending at approximately $80 billion. Under sequestration, institutional prime contractors to the Department of Defense may experience cutbacks in government contracts. Yet, much like the auto industry, these large firms are the tip of the iceberg, as they require support from a cadre of small- and medium-sized IT firms to provide a variety of IT services. The ripple effect of federal budget cuts in contracting seen throughout the economy could be profound.

As a consumer, the federal government helps to drive the IT industry. For example, within the last 18 to 24 months, federal agencies have started to migrate servers to cloud environments. Mobile apps for the enterprise and government sector are further behind in terms of adoption by federal agencies, while unified communications and M2M platforms are still in the experimental stages. Across the board cuts to federal agency budgets could have a direct impact on these transitions and on the IT sector’s drive to innovate. A restriction in procurement could remove incentives for firms to invest in newer, innovative, emergent technologies to meet these government technology adoptions. Many smaller firms, including CompTIA members, are developing products to meet contract specs (like mobile apps) and now could be forced to put such projects on a back burner.

Beyond the intersection of government consumption of innovation there is, of course, government investment in research and development – particularly at the basic and applied research levels. Several organizations, such as the American Association for Advancement of Science, the Information Technology Industry Foundation and others, have released reports detailing how potential federal R&D programs could be impacted by sequestration. The reports detail the alarming impact that sequestration would have on innovation, national productivity and jobs. A short-term cut in R&D could impose a long-term penalty on our national competitiveness.

Small Business Programs

Aside from the down stream effects of sequestration in relation to government contracts and R&D, there are also some specific small business programs that could be adversely impacted by the sequestration process. For example, the OMB report identifies the Small Business Lending Fund as an eligible program for sequestration cuts. This fund supports loans to community banks in order to encourage these banks to increase small business lending. While the size of cuts may not be considered large within the scope of all cuts, these types of reductions around support and lending programs are harmful because a little help goes a long way for the small entrepreneur.

Workforce and Skills Gap

As the leading global provider of vendor-neutral IT workforce certifications, CompTIA sits uniquely at the intersection of innovation and education. Approximately 300,000 IT jobs are currently unfilled in this country. Policies and programs that expand lifelong education in computer sciences and basic IT skills – as well as policies and programs that lead to meaningful careers in IT – are desperately needed if the U.S. is to spur job growth, innovate and compete globally. Yet many of the federal programs that play a role in supporting workforce development are at risk of being cut under sequestration.

For example, the office in the Department of Education charged with coordinating programs in adult education and literacy, career and technical education, and community colleges is at risk. Further, the Trade Adjustment Assistance Community College and Career Training Grant Program is at risk. This program provides community colleges and other institutions funds to support those men and women who have been economically dislocated due to the vagaries of global competition and are in need of re-training to get back into the workforce. Finally, the Department of Labor’s Veterans Employment and Training office, which provides resources and expertise to assist and prepare veterans to obtain meaningful careers, maximize their employment opportunities, and protects their employment rights, is at risk.

The IT industry is united in its concern over possible sequestration consequences. All of us take seriously our nation’s fiscal position and the need to responsibly address the deficit. Nevertheless, innovation, support for our small businesses and preparation of our workforce are investments that should not be shortchanged. We hope that Congress and the White House will head off the blunt instrument of sequestration and, instead, work together with scalpel-like efficiency to cut spending wisely and not at the expense of critical investments that are at the heart of our national prosperity.

On September 26^th, in partnership with the Illinois Technology Association (ITA), CompTIA launched its second TechVoice Chapter in Illinois. The official kick-off, which was also co-hosted by the Partnership for a New American Economy, took place at the ITA offices in downtown Chicago. The aim of this first gathering was to introduce the 65 attendees to a proposal now pending in the United States Congress called the Startup 2.0 Act (H.R. 5893 and S. 3217). By hearing from one of the Congressional co-sponsors of the bill, Representative Robert Dold, and then holding a panel discussion breaking down the components of the bill, the objective was to encourage those in attendance to learn and engage in the political process to make a difference for small and medium sized tech firms.

First a recap on Start Up 2.0. The proposal has a few different provisions of interest to the tech entrepreneur:

• 100% Capital Gain Exclusion for Investments in Small Startup Companies. Investors in qualified small businesses that hold their stock for five years would qualify for a 100% exclusion of any capital gains. That is, any gains from such investments would be tax-free. Generally, to qualify, the small business must be a “C” corporation having $50 million or less in assets which the stock is issued.
  
  
• Simplified R&D Tax Credit for Small Startup Companies. This provision creates a targeted research and development tax credit for small startup companies with less than $5 million in annual receipts. These companies would be allowed a 20% R&D credit based on R&D wages. Unlike the traditional credit (with its three alternative calculations), this Startup 2.0 credit is not based on some historical base amount calculation. The credit would be 20 percent of the corporation’s W-2 R&D wages, limited to a maximum of $250,000.
  
  
• Conditional Permanent Resident Status for Foreign-Born Residents with an Advanced Degree in Science, Technology, Engineering, or Mathematics. The bill proposes to create a new visa for up to 50,000 foreign students who graduate from an American university with a Master’s of Ph.D. degree in science, technology, engineering, or mathematics. Visa recipients would be granted conditional status contingent upon their remaining actively engaged in a STEM field for five consecutive years. Once conditional status is lifted, the visa holder becomes a permanent legal resident with the option to naturalize.

While there are other provisions of the bill these three items formed the main of the conversation. Representative Dold set the tone by sharing with the audience his perspective as a small business owner and lawmaker. As part of his Main Street Jobs Agenda, Congressman Dold explained how he has joined with members of the Congress on both sides of the aisle to find ways to jump start small and medium sized business growth. In fact, he noted that the Start Up 2.0 Act follows on the heels of reauthorization of the Export Import Bank to spur on American exports; and passage of the Jumpstart Our Business Start-Up Act which encourages innovative "crowd-funding" to help finance new businesses, and is designed, among other things, to make investment rules more oriented toward helping smaller companies gain access to capital.

Following his remarks, I had the pleasure of moderating a panel featuring local businessmen Andrew Hoog of viaForensics, and Jeremie Bacon of Backstop Solutions; as well as Robert Feldstein from New York City Mayor Bloomberg’s office who has launched the Partnership for a New American Economy, a non-partisan organization dedicated to achieving meaningful immigration reform, particularly in the area of STEM.

Andrew Hoog noted that he was particularly interested in the R&D provision of the bill. The existing R&D tax credit is based on the revenues of a firm and has a complicated calculation process. As a consequence, Hoog noted that his firm was not able to take advantage of the credit until a couple of years after the launch of his company, when it started to turn a profit, and that it was quite costly to calculate “backwards” to derive credit. The prospect of an R&D tax credit based on R&D wages is appealing because it would simplify the accounting process and make the credit available earlier in a company’s growth curve, with less transactional cost, thus potentially spurring growth sooner in a companies evolution.

While Hoog saw less specific benefit for his company with regard to the 100% capital gains exclusion, Jeremie Bacon noted that an important beneficiary of this proposal would be venture capital and investment firms. By making resources more available to this segment of the business cycle, he noted that VCs would be more inclined to make early stage investments in tech start-ups, thus enhancing a “virtuous cycle” of growth.

Bacon also shed light on the immigration proposals in the bill. Backstop Solutions has about 49 engineers and a significant proportion of those are foreign born. He explained that going through the current H-1B visa process is costly and time consuming. Now, the company has honed the process so that it costs roughly $4,000 to $6,000 per applicant. He also noted that the difficulty of navigating the H1-B process is one more hurdle to jump over in attracting smart individuals to come work for them. Backstop is competing for talent against peer companies in the United States as well as companies overseas. The proposed new STEM visa category could make it easier for his company and for smaller firms to attract STEM talent.

Robert Feldstein provided a broader perspective on the importance of immigration by noting that five additional jobs are created for every high-skilled visa (h1b) because immigrants often work in R&D and exports. Feldstein also pointed out that there is a meaningful correlation between immigration and innovation. For example, according to the Partnership’s research more than three out of every four patents at the top 10 patent-producing US universities (76%) had at least one foreign-born inventor. These are but a couple of data points developed by this organization that supports the notion that expanding visa categories and encouraging retention of skilled immigrants is not a zero sum game pitting American workers against foreign. Just the opposite is true.

This was a terrific kick-off for the Illinois TechVoice chapter. The hope is to build off this impressive launch to keep local entrepreneurs informed and engaged. Meetings and events to follow!

Earlier today, the White House issued a letter addressed to Senator Jay Rockefeller, Chairman of the Senate Commerce, Science, and Transportation Committee, signed by John O. Brennan, Assistant to the President for Homeland Security and Counterterrorism.

The letter states “the President is determined to use existing executive branch authorities to protect our nation against cyber threats.” This letter makes clear that in the absence of comprehensive cybersecurity legislation the White House will issue an Executive Order aimed at owners and/or operators of critical infrastructures. The order would require owners and operators of critical infrastructures to develop best practices in coordination with the federal government to protect against cyber threats and attacks.

The letter clarifies that the White House supports an information sharing and “best practices” approach between the federal government and the private sector. It does not shed light on whether penalties and/or liabilities would be imposed on those providers and/or owners who fail to comply with such as Executive Order. The issue of mandates, penalties, and liabilities is a key point of contention between Democratic and Republican Leadership, and it is not surprising that the letter is silent on the issue. Nevertheless, for those critical infrastructure providers and/or operators that “are already meeting these recommended best practices, nothing more would be expected.”

The release of this letter now shifts the focus to Republican Leadership in both Chambers to await their response to the first salvo from the White House on the cybersecurity debate. By all accounts, securing passage of a major cybersecurity bill would be a herculean effort prior to the November election. We will wait and see how things unfold and will report back as details emerge.

As we have been reporting, the Republicans and Democrats both held their conventions and formalized the nominations of President Barack Obama and Governor Mitt Romney.  While we would have liked to have seen additional focus on the tech sector and policies to ensure it remains globally competitive, CompTIA had a significant presence at each convention.  

At the Republican and Democratic conventions, CompTIA joined a number of tech associations in sponsoring events highlighting the contributions of technology to the nation’s economy.  Several members of the Senate and the House of Representatives attended the gatherings. 

Here are a few key speeches from each convention:

Governor Mitt Romney                 President Barack Obama

Rep. Paul Ryan                                  Vice President Joe Biden

Ann Romney                                      Michelle Obama

Senator Marco Rubio                    Former President Bill Clinton

Tech in the Party Platforms

As we noted in our prior postings, one of the official responsibilities of a political convention is to adopt a party platform, which provides a general framework for where each party stands on key policy issues (determined by each party).  While we had hoped there would be more of a focus on tech issues by both parties, there were various sections of each platform that are of interest to the tech community: 

Democratic Party Platform

Taxes:  “We are also committed to reforming the corporate tax code to lower tax rates for companies in the United States, with additional relief for those locating manufacturing and research and development on our shores, while closing loopholes and reducing incentives for corporations to shift jobs overseas.” 

Education and Innovation: “The President also proposed to double key investments in science to educate the next generation of scientists and engineers, encourage private sector innovation, and prepare at least 100,000 math and science teachers over the next decade.”

Immigration: “And to make this country a destination for global talent and ingenuity, we won't deport deserving young people who are Americans in every way but on paper, and we will work to make it possible for foreign students earning advanced degrees in science, technology, engineering, and mathematics to stay and help create jobs here at home.”

Internet: “President Obama is strongly committed to protecting an open Internet that fosters investment, innovation, creativity, consumer choice and free speech, unfettered by censorship or undue violations of privacy.”

Education and Research: “Democrats are committed to preparing math and science teachers and training workers with skills for the future, and doubling funding for key basic research agencies. We support expanding and making permanent the Research and Experimentation Tax Credit.”

Small Business: “President Obama and the Democratic Party are committed to continue cutting red tape for small businesses, helping them sell their goods around the world and access the capital they need to grow. This includes tax cuts for small businesses that make new investments, hire more workers, or increase wages.”

Cybersecurity: “We will continue to take steps to deter, prevent, detect, and defend against cyber intrusions by investing in cutting-edge research and development, promoting cybersecurity awareness and digital literacy, and strengthening private sector and international partnerships. President Obama has supported comprehensive cybersecurity legislation that would help business and government protect against risks of cyber attacks while also safeguarding the privacy rights of our citizens. And, going forward, the President will continue to take executive action to strengthen and update our cyber defenses.”

Republican Party Platform

Taxes: To level the international playing field, and to spur job creation here at home, we call for a reduction of the corporate rate to keep U.S. corporations competitive internationally, with a permanent research and development tax credit, and a repeal of the corporate alternative minimum tax.

Immigration:  “We can accelerate the process of restoring our domestic economy-and reclaiming this country’s traditional position of dominance in international trade-by a policy of strategic immigration, granting more work visas to holders of advanced degrees in science, technology, engineering and math from other nations. Highly educated immigrants can assist in creating new services and products. In the same way, foreign students who graduate from an American university with an advanced degree in science, technology, engineering or math should be encouraged to remain here and contribute to economic prosperity and job creation. Highly skilled, English-speaking, and integrated into their communities, they are too valuable a resource to lose. As in past generations, we should encourage the world’s innovators and inventors to create our common future and their permanent homes here in the United States.”

Regulation: “The bottom line on regulations is jobs. In listening to America, one constant we have heard is the job-crippling effect of even well-intentioned regulation. That makes it all the more important for federal agencies to be judicious about the impositions they create on businesses, especially small businesses. We call for a moratorium on the development of any new major and costly regulations until a Republican Administration reviews existing rules to ensure that they have a sound basis in science and will be cost-effective.”

Technology and Communications: “We call for an inventory of federal agency spectrum to determine the surplus that could be auctioned for the taxpayers’ benefit. With special recognition of the role university technology centers are playing in attracting private investment to the field, we will replace the administration’s Luddite approach to technological progress with a regulatory partnership that will keep this country the world leader in technology and telecommunications.”

Small Business: “We will reform the tax code to allow businesses to generate enough capital to grow and create jobs for our families, friends and neighbors all across America. We will encourage investments in small businesses. We will create an environment where adequate financing and credit are available to spur manufacturing and expansion. We will serve as aggressive advocates for small businesses.”

STEM: “We advocate the policies and methods that have proven effective: building on the basics, especially STEM subjects (science, technology, engineering and math) and phonics; ending social promotions; merit pay for good teachers; classroom discipline; parental involvement; and strong leadership by principals, superintendents and locally elected school boards. Because technology has become an essential tool of learning, proper implementation of technology is a key factor in providing every child equal access and opportunity.”

Cybersecurity: “The government and private sector must work together to address the cyberthreats posed to the United States, help the free flow of information between network managers, and encourage innovation and investment in cybersecurity. The government must do a better job of protecting its own systems, which contain some of the most sensitive data and control some of our most important facilities. As such, we encourage an immediate update of the law that was drafted a decade ago to improve the security of government information systems. Additionally, we must invest in continuing research to develop cutting-edge cybersecurity technologies to protect the U.S. However, we acknowledge that the most effective way of combating potential cybersecurity threats is sharing cyberthreat information between the government and industry, as well as protecting the free flow of information within the private sector.”

Now that the Conventions Are Over, Who Is Winning?

According to the most recent Rasmussen daily tracking poll of likely voters, President Obama seems to have had a significant “bounce” in polls since the Democratic convention.  The President currently leads Governor Romney 49 percent to 45 percent among likely voters (with 3 percent favoring another candidate and 3 percent undecided).  According to Rasmussen, this reflects President Obama’s largest lead since mid-March.

But the real answer is that the election is still incredibly close, and voters have a chance to make their voices heard – on technology and other issues.

It’s been a whirlwind of political activity for CompTIA’s staff these past two weeks. This week, we joined the Democratic National Convention in Charlotte to spotlight the contributions of innovation to our economy.  We’ve been working on-the-go to ensure that the views – and contributions – of the tens of thousands of small and medium sized tech companies and entrepreneurs are recognized.

This week in Charlotte, the Democratic Party focused on several policy provisions significant to CompTIA and the industry at large:

Democrats Push for Open Internet, Cybersecurity – On the Sunday before the Democratic National Convention, Democrats included a special focus on open Internet policies and stronger cybersecurity laws in their platform, says the Washington Post. The platform hinted that President Barack Obama would take executive action soon, due to slow progress on legislation in Congress.  Additionally, the platform indicates the President is willing to do what it takes to strengthen our defenses and protect the country.

SBA Chief Defends Obama’s Small Business Record at Convention – The Small Business Association’s top official, Karen Mills, defended President Obama’s record regarding entrepreneurs and business owners at the convention, the Washington Post reported. She maintained Obama has repeatedly sought to ease regulations, lower taxes and make it easier for businesses to hire and grow.

Democrats Call for Internet 'Freedom,' Cybersecurity Laws – Heading into the convention this week, Democrats praised the Obama administration’s cybersecurity victories, says Computerworld. Outlined in their platform, they wrote that Obama backed the first military command dedicated to cybersecurity and even conducted a review of the federal government’s own efforts. 

Missed our coverage of the RNC last week as Republicans teed up their positions on tech policies?  Check it out here.

The next milestone in this critical national election will be the debates.  The first of three Presidential debates will take place on October 3rd in Denver and will be focused on domestic policy matters.  We will follow this and the subsequent debates for matters impacting the technology industry.

This election cycle CompTIA has joined several of its tech association peers and several IT company sponsors in hosting receptions in Tampa and Charlotte honoring the contributions of innovation to our economy. Our objective is to continue to highlight to policy-makers the diversity of the industry and the fact that it is driven not just by large OEMs and service providers but also by tens of thousands of small- and medium-sized tech companies and entrepreneurs.

This week in Tampa, the Republican Party focused on several policy provisions significant to CompTIA and the industry at large. Here’s a media round-up:

GOP Platform Seeks More Aggressive U.S. Cyber Deterrence Policies – The Republican Party adopted calls for more stringent cybersecurity legislation as they pertain to government and civilian targets – calling President Barack Obama’s current policies too defensive and ineffective – says Computerworld. The comments contained in the manifesto that expresses these frustrations are significant “as they mark the first time either party has focused on cybersecurity in their election-year manifestos.”

Small Business a Common Theme at Republican Convention – Republicans highlighted the growing national debt, sluggish economic recovery and the need to loosen regulatory burdens on small businesses as they sought to court the small business community, says the Washington Post. National polls show a dead heat between President Obama and former Governor Mitt Romney for votes, although a recent Washington Post survey shows 61 percent of small business owners plan to vote for Romney in November.

Tax Policy and Low Regulation Drives Tech Innovation for Romney Backers – A panel of prominent Republicans at the Republican National Convention say that American technological innovation will be the result of reduced regulation and corporate tax reform, according to the National Journal. Additionally, Mitt Romney has talked about his plans to attract highly skilled workers and innovative entrepreneurs from foreign countries, “offering legal immigration status to students who earn Ph. D degrees in the U.S.”

Look for more coverage of both parties’ stances on small business and tech policies following the DNC in Charlotte next week.

A look at the week of August 28 in public advocacy for the IT channel: Michelle Obama announced in Florida last week that 2,000 businesses have trained or hired more than 125,000 military veterans and spouses, exceeding the White House goal of 100,000 for 2012, says the Associated Press. Federal regulators warned yesterday through a statement that our existing federal laws may not protect “against fast-moving cybersecurity threats,” says CNET. Former senior director for cybersecurity to President Obama Sameer Bhalotra has announced that he is starting a new gig as chief operating officer at Impermium, a cybersecurity start-up based in California, according to the New York Times.

Michelle Obama Makes Veteran Hiring Push in Florida – Michelle Obama announced in Florida last week that 2,000 businesses have trained or hired more than 125,000 military veterans and spouses, exceeding the White House goal of 100,000 for 2012, says the Associated Press. Those same companies also recently committed to hire or train an additional 250,000 by the end of 2014.

Power Grid Vulnerable to Fast-Moving Cybersecurity Threats – Federal regulators warned yesterday through a statement that our existing federal laws may not protect “against fast-moving cybersecurity threats,” says CNET. The Federal Energy Regulatory Commission issued a statement yesterday in response to questions from two senators in July as to allegations that industry standards for digital signatures were insufficient.

Former White House Cybersecurity Official Joins Start-Up – Former senior director for cybersecurity to President Obama Sameer Bhalotra has announced that he is starting a new gig as chief operating officer at Impermium, a cybersecurity start-up based in California, according to the New York Times. Bahlotra is the latest in a spring of cybersecurity experts leaving the public sector to focus on start-ups. Bahlotra’s new company’s aim is to “clean up the social Web using so-called big data techniques.”

As the 112th Congress quickly comes to a close and with only a few legislative days left on the calendar (and I think I heard something about an election), we are not likely to see much action from the House or Senate for the rest of the year. This is the perfect time to reflect on what the last Congress focused on and to make an action plan of where we want to see Congress focus its energies in the next term.

Improvement to the quality of and access to STEM (science, technology, engineering, and mathematics) education in the K-12 range should be high on our list. There were a total of 33 bills introduced in this Congress that focused on STEM education, and not a single one saw any floor action. Not only must the next Congress introduce a series of bills on this topic, they must fight for action to be taken on them. Although the introduction of legislation is critical for the sake of evolving the conversation, it will not help move the U.S. from 31st and 23rd among developed countries in math and science, respectively, in the rankings.

Furthermore, it is crucial that the dialogue around STEM education make the connection to career and technology education. The STEM conversation has tended to focus on the need for the U.S. to produce more advanced STEM degree graduates. Without a doubt, this is true. However, there is more to it. A STEM foundation in K-12 can produce graduates from technical and community colleges who are trained, certified and ready to enter the IT workforce. Despite the high unemployment rate in the U.S., there is on average about 300,000 IT jobs that are currently available. We just don’t have the workforce to fill the demand.

We applaud those who introduced STEM legislation in the 112th Congress and are grateful for their efforts. We remain hopeful, however, that we can take the next step, from conversation to action, in the 113th Congress.