SSTI Digest

State lottery would be leased to private company to finance fund, scholarships

Two initiatives recently proposed by Gov. Mitch Daniels would keep graduating college students in-state and lure world-class researchers to Indiana's public universities. However, a lottery lease plan that would, in part, finance the initiatives may be more the center of attention with Indiana legislators.



The initiatives: (1) a forgivable loan of up to $20,000 for students who attend four-year colleges or universities in Indiana and stay in the state for three years, else repay the loans, and (2) a fund that would create endowments to cover salary and start-up costs to draw the aforementioned researchers and scholars from outside of Indiana.



The financing: Lease the Hoosier Lottery for a fixed term to a contractor that would operate the lottery and continue an annual payment of $200 million to the state. The state would then license and regulate the operator, which would provide an up-front payment to support the education initiatives, and possibly receive an ongoing percentage of the operator's revenue that is above a certain amount.



If the state achieved up-front proceeds of $1 billion, for example, 60 percent or $600 million would be directed to the Hoosier Hope Scholarships. That amount would enable some 1,700 Indiana high school graduates to receive financial assistance each year. The other 40 percent, or $400 million, would be used for the World Class Scholars Fund. Each year, $50 million would be available and leveraged to at least double that amount through required university matching funds and federal grants. Each awarded grant, which universities would place into an permanent endowment, could range from $500,000 to $3 million.



The annual payment amount of $200 million is just above the average of the last four years of lottery returns. It would continue to fund police, fire and teachers pensions; local motor vehicle excise tax replacement; and state and local capital projects, as it does in Indiana's current lottery earnings stream.



Students attending two-year colleges and universities such as Ivy Tech Community College also would be eligible under Gov. Daniels' plan, but for a lesser amount -- $5,000 total, with the opportunity to receive an additional two years of funding at a four-year institution.



"This proposal is vital as we focus on the workforce needs of Indiana," said Gerald Lamkin, president of Ivy Tech, which has 23 campuses throughout the state. "Specifically, this franchise concept will allow us to address the immediate life science and bio science workforce needs in Bloomington and central Indiana, where we need more than 2,000 trained workers in the next five years."



Forty-five percent of all Indiana public postsecondary graduates leave Indiana after graduating, according to the governor's press statement. Indiana also is said to rank 44th among states for its share of population over the age of 25 with a bachelor's degree, behind such states as South Carolina, Georgia, Tennessee and New Mexico.



The goal of the higher education initiatives, as touted by the governor's office, is to transform higher education in Indiana and to enhance the state's key knowledge-based industries, yet Indiana lawmakers are skeptical. A Dec. 14 Associated Press article cites the concerns of those who feel Gov. Daniels' proposal "pushes" privatization and allows the private company running the lottery "to expand gambling to make a bigger profit."



The State Student Assistance Commission of Indiana would administer the Hoosier Hope Scholarships, which would be based on merit. Scores on the SAT or ACT exam, cumulative grade point average (GPA) and class rank would be key award criteria. Once awarded, students would be required to maintain a 3.0 GPA and complete studies in the time specified by their degree program, to continue to receive awards each year.



The number of scholarships awarded annually would be based on the endowment's annual earnings, but a specified number would be reserved for those who enroll in a two-year degree program.



Though the faculty grants could be accessed only by public colleges and universities, Indiana's private colleges could participate through collaborative proposals. The World Class Scholars Fund would be amortized over 10 years, and all grants would require matching contributions from the institutions that receive them.



The state's Public Finance Office soon will issue a request for qualifications to begin to identify interest in the transaction. Gov. Daniels also will seek legislation to franchise the lottery operation and to specify the uses of the two trust funds.



The governor's press release is available at: http://www.in.gov/apps/utils/calendar/presscal?PF=gov2&Clist=1_3_4_6_11_16_61&Elist=87845

Complete descriptions of the position openings described below are available at http://www.ssti.org/posting.htm.



Griffin Analytical Technologies, LLC, a producer of premium chemical detection systems, is seeking a research specialist. Griffin serves U.S. Departments of Defense and Homeland Security applications, environmental health and safety monitoring, and research and teaching laboratories. The research specialist will assist the science team with R&D efforts related to Griffin's products and will be responsible for exploring new applications for Griffin's technology. A Master of Science degree is preferred; however, a Bachelor of Science degree accompanied by five or more years of experience will be considered. Applicants also should have two or more years of applicable experience in mass spectrometer operation and development.



The Penn State Industrial Research Office is seeking a senior technical specialist to facilitate long-term relationships with industry and government and enhance the university's potential for contract research and technology transfer. This person must maintain a thorough understanding of university expertise by interacting with faculty and center directors and supporting proposal development, negotiations and the marketing of licensable technology. The position requires a master's degree or the equivalent in a technical field, plus three years of progressive experience in industry in a marketing or sales environment.

The two position opportunities described below were recently posted on the SSTI Job Corner. More information, including complete details on responsibilities, qualifications and application deadlines (when available), is available at http://www.ssti.org/posting.htm.



Purdue University seeks an individual with vision and demonstrated leadership skills to serve as the Avrum and Joyce Gray Director of Purdue University's Burton D. Morgan Center of Entrepreneurship (BDMCE). The mission of the BDMCE is to facilitate the commercialization of promising Purdue University and Discovery Park intellectual property and technology, to involve and familiarize Purdue undergraduate, graduate, and postdoctoral students with all aspects of entrepreneurship, and to enhance entrepreneurial activities throughout the state of Indiana. The director should hold a doctorate degree, and/or an MBA or its equivalent, and must have demonstrated success in entrepreneurial activities.



The Rosen Center for Advanced Computing (RCAC), a research computing center at Purdue University, seeks a managing director to lead the daily computing activities of RCAC, support Purdue researchers and provide general guidance for a variety of administrative processes. A Master of Science degree in science or business related field is required; a Ph.D. degree is preferred. This position also requires 10 years of progressively responsible experience in science, technology or high-performance computing, with at least five years of experience in a managerial role.

Nathan Feltman was named Secretary of Commerce and president of the Indiana Economic Development Corp. (IEDC). Feltman, the organization's executive vice president and general counsel, replaces outgoing IEDC President Mickey Maurer.

Indiana Economic Development Corp. President Mickey Maurer will resign at the end of 2006, fulfilling his pledge to Gov. Mitch Daniels to serve two years.

Griffin Analytical Technologies, LLC, a producer of premium chemical detection systems, is seeking a director of laboratory operations and applications development. Griffin serves U.S. Departments of Defense and Homeland Security applications, environmental health and safety monitoring, and research and teaching laboratories. The director will manage the workflow of Griffins labs, manage a staff of five, support research programs, and support sales and marketing efforts. A Ph.D. degree is preferred. Applicants also should have experience in mass spectrometry, seven or more years of related laboratory work, and at least three years of laboratory management experience. More information on this opportunity is available through the SSTI Job Corner at http://www.ssti.org/posting.htm.

Purdue University has hired Mark Smith as its new Workforce Innovations in Regional Economic Development project administrator.

Griffin Analytical Technologies, a producer of premium chemical detection systems, is seeking a proposal coordinator to generate research proposals in response to federal and state funding solicitations. Griffin serves U.S. Departments of Defense and Homeland Security applications, environmental health and safety monitoring, and research and teaching laboratories. The proposal coordinator will work with Griffin's R&D and management teams and will report directly to the companys vice president of research and development. Applicants should have a Master of Science or Ph.D. degree in a scientific discipline, or a bachelor's degree with five or more years of applicable proposal writing experience. More information on this opportunity is available through the SSTI Job Corner at http://www.ssti.org/posting.htm.

With assets totalling more than $15 billion, the Indiana Public Employees Retirement Fund (PERF) has decided to place $100 million into higher-risk equity placements through its first Indiana Investment Fund. The fund will exclusively target venture capital deals within Indiana, according to the PERF news release. Like pension funds in many states, PERF has a requirement to place a certain percentage of its assets in private equity. The PERF goal is 5 percent and includes real estate deals as well. The new fund will help, as only one-half percent of PERF assets presently are invested in a manner to meet the requirement.



The Indiana Investment Fund I will be managed by Credit Suisse, which is chipping in $5 million to raise the total available for placement to $100 million. Indiana business investment opportunities in the $1 million to $15 million range will be targeted. PERF's traditional investment decisions, for comparison, are typically in the $50 million to $100 million range.



Indiana Investment Fund's launch more than doubles the amount of investment capital specifically targeted at Indiana ventures. Also, managed by Credit Suisse for BioCrossroads, the $73 million Indiana Future Fund is a fund of funds seeded by Indiana's public pension funds, Eli Lilly and Company, WellPoint Inc., Indiana University, Indiana University Foundation, Purdue University, Ball State University Foundation, American United Life Insurance Company, Indiana State University Foundation and Guidant Corporation.



The Indiana Future Fund targets life science and biotech opportunities and has made five investments since its launch in 2003. No technology or industry emphasis has been designated for PERF's Indiana Investment Fund I. More information is available at: http://www.in.gov/perf/agency/Indiana_Investment_Initiative.html

The Purdue Center for Regional Development has appointed Ed Morrison to the position of economic policy advisor.

Just over a year since its creation, the Indiana Economic Development Corporation (IEDC) has released a strategic plan calling for the state to potentially increase its support for several new tech-based economic development initiatives. IEDC's Accelerating Growth: Indiana's Strategic Development Plan outlines nearly two dozen action items along three themes: innovation, talent and investment.

The 82nd Annual Congress of Cities in Charlotte, N.C., elected Jim Hunt, a councilmember of Clarksburg, W.Va., as the new president of the National League of Cities. Hunt follows Washington, D.C., Mayor Anthony A. Williams.