$130.6 Million NYSTAR Created

Most of New York’s science and technology initiatives have been consolidated into the New York Office of Science, Technology, and Academic Research (NYSTAR), which has received an annual budget of $130.6 million as a result of the Jobs 2000 Plan or “J2K” signed by Governor George Pataki in mid-November.

The new office incorporates the programs, functions, and staff of the NY State Science & Technology Foundation. The foundation, established in 1961, was one of the oldest continuously running state S&T programs. The Foundation had been part of Empire State Development Corp. since 1995; NYSTAR will be a separate entity.

With a total price tag of $522 million, J2K provides funding for projects ranging from NYSTAR and public venture capital to local water development projects.

As part of J2K, the 1999-2000 state budget includes a $156.5 million investment in high-tech academic research; $280 million in venture capital funds to invest in emerging businesses in New York State; $34 million to retrain employees to operate new high-tech equipment; and $51.5 million for infrastructure improvements to supply water to accommodate business growth.

Specific components of the J2K Plan include:

NYSTAR

NYSTAR will increase the state's investment in research universities and help turn that research into new jobs. The office will administer a Research Development Program to develop and recommend policies that encourage research and economic development involving colleges and universities; develop policies where the state may more effectively share in royalty and licensing fees generated from the development of new technologies for use in future high-tech initiatives; and organize informational resources to assist prospective researchers and universities in the preparation of successful grants.

The NYSTAR office will oversee the following:

• Faculty development program ($7.5 million) -- a program to attract the brightest research minds to New York State.
• Capital facilities program ($95 million)-- a research capital initiative to finance state-of-the-art laboratory space.
• Technology Transfer incentive program ($5 million) -- an incentive fund to help campuses strengthen technology transfer efforts.
• Centers for Advanced Technology development program ($10 million) - a development fund to expand the 14 current Centers for Advanced Technology, which already receive $1million annually each.

NYSTAR also will provide $2.5 million for business assistance through the New York Institute for Entrepreneurship at Empire State College.

NYSTAR will receive advice and oversight from a new advisory council, which will consist of 11 members: seven appointed by the Governor and two each by the Temporary President of the Senate and the Speaker of the Assembly.



Venture Capital

The New York State Venture Capital Program will provide for a $250 million investment in businesses in New York. This program will exist within the New York State and Local Employee's Retirement System.

J2K also expands the CapCo program to provide tax credits for certified capital investments in New York by $30 million. The CapCo program provides tax credits to insurance companies that make capital investments in emerging technology companies.

Job Retraining

The Strategic Training Alliance Program will be amended to address the need for private sector job retraining to enable the state's established workforce to upgrade their skills to handle new technology to help businesses remain competitive. The program will receive $34 million.

A copy of the J2K legislation (Senate Bill 3) can be found on the New York Assembly’s website: http://assembly.state.ny.us