Budget Outcomes Unveiled in Several Western States

Bills have been passed and budgets approved with the close of several 2007 legislative sessions in the western states. The below article is part of the Digest's continuing coverage of the legislative outcomes of some of what governors proposed in their State of the State and budget addresses (see SSTI’s Tech Talkin’ Govs Series in the Jan. 8, Jan. 15, Jan. 29 and Feb. 19, 2007 issues of the Digest).

 

Washington

The 2007 legislative session ended last month with the approval of the first installment of $70 million over the 2007-09 biennium for the Life Sciences Discovery Fund. Created in 2005, the fund provides grants for promising life science university research within the state. The bill allocates $35 million per year from strategic tobacco settlements for 10 years beginning in 2008 (see the May 16, 2005 issue of the Digest).

 

Legislation was passed to fund Innovation Partnership Zones (HB 1091) at the request of Gov. Christine Gregoire and the Global Competitiveness Council. The fiscal year 2007-09 capital budget includes $5 million for the zones — designated areas of Washington where globally competitive companies, research institutions and advanced training are creating a special competitive advantage for the state. The $5 million allocation will fund five grants over the next two years to help pay for buildings and infrastructure. In addition, the capital budget includes $58 million for Washington State University to complete the Pullman Life Sciences Building and $5 million for broadband infrastructure in rural parts of the state.

 

Idaho

In 2006, the Governor’s Science and Technology Advisory Council - along with former Gov. Jim Risch - agreed upon a $38.8 million economic development package consisting of several recommendations to attract and grow new technology businesses that was contingent upon approval by the newly elected governor (see the Oct. 2, 2006 issue of the Digest). In his FY 2008 budget recommendation, Gov. C.L. “Butch” Otter endorsed only one of the recommendations — $15 million for the Higher Education Research Council, which could be spent on both infrastructure costs and research. However, the legislature appropriated only $1.56 million in the FY08 budget.

 

Also included in the budget is $1 million for the Business and Jobs Development Fund, with a maximum amount of $250,000 per recipient and $300,000 for the state’s Tech Connect program, the same level as FY07. The program provides assistance to technology companies with commercialization and entrepreneurial development.

 

The legislature also passed HB 222, separating the state’s departments of commerce and labor at the request of Gov. Otter, which previously were combined by former Gov. Dick Kempthorne. According to the bill, separating the departments will allow the Director of Commerce more time to focus on recruiting and retention of small businesses, international trade and other specific issues related to economic development.

 

Oregon

In March, Sen. Kurt Schrader (D-Canby) and Rep. Mary Nolan (D-Portland) unveiled the Co-Chairs’ 2007-09 Recommended Budget, which counters several recommendations offered in Gov. Ted Kulongski’s budget released in 2006.

 

Gov. Kulongoski’s budget proposal included full funding for a $38 million economic stimulus package at the request of the Oregon Innovation Council. The Co-Chair’s budget only includes half of that amount.

 

Some of the initiatives funded under the council’s plan include a continued investment of $10 million for the Oregon Nanoscience and Microtechnologies Institute (ONAMI); $10 million to support two new signature research centers; $7 million for an infectious disease drug development research center; and, $3 million for the Bio-Economy and Sustainable Technologies Center to focus on R&D in clean energy, bio-based products and green building materials (see the Dec. 18, 2006 issue of the Digest). Under the Co-Chair’s budget, ONAMI and Signature Research Centers would receive $19 million.

 

Hearings on the budget will continue until the 2007 Legislative Session closes in June.

 

Colorado

Last week, the General Assembly passed HB 07-1060, transferring $2.5 million of the general fund portion of limited gaming fund money to the Colorado Bioscience Discovery Evaluation Grant Program. The program will provide grants of up to $100,000 for an SBIR or STTR project and up to $150,000 for other research projects. Additionally, the bill increases the amount the Office of Economic Development may spend in administering the program. The program was created in 2006 with a one-time appropriation of $2 million for the advancement of new bioscience discoveries at Colorado research institutions (see the June 12, 2006 issue of the Digest).

 

Utah

The Utah Science, Technology and Research Initiative (USTAR) received $19.3 million, the proposed operating budget amount for FY08, and an additional $74,500 for compensation adjustments. USTAR was created by the legislature in 2006 to leverage the state’s research universities in creating and commercializing technologies. The legislature appropriated $50 million for start-up costs, $15 million for hiring “all-star” research teams and $4 million to provide funding for a technology outreach program.