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Budget Proposals Focus on States' Investment in Research, Workforce Training

December 10, 2008
Despite projected deficits in several Western and Great Plains states, governors in Montana, South Dakota, and Wyoming recently unveiled budget proposals for the upcoming fiscal year, providing level or increased funds for research priorities and workforce training central to each state's economic vitality. The following is an overview of the budget recommendations outlined by the respective governors.

Montana
Last month, Gov. Brian Schweitzer unveiled a two-year budget that provides several one-time appropriations for workforce training to ensure the state remains competitive in the global economy and sets aside $250 million in reserves.

The fiscal year 2010-11 budget proposal includes $73.2 million over the biennium for the Department of Commerce. Included in the governor's request is $100,000 each fiscal year to seed the Montana Fund of Funds, which was created in 2005 under the Montana Equity Capital Act but never funded (see the Dec. 19, 2007 issue of the Digest). New proposals within the Department of Commerce include $8 million over the biennium to provide workforce training grants under the New Worker Training program and $1.6 million over the biennium to support tribal business development projects, workforce training projects, and entrepreneurial training.

To ensure Montana's workforce is up to par in emerging technology fields, the governor is recommending $1.9 million over the biennium for a dual-faceted approach that reorganizes the Department of Labor and Industry. The proposal also will identify gaps and respond to emerging workforce demands by helping workers receive necessary training in a variety of circumstances, according to budget documents.

Under the plan, the Jobs for Montana Graduates program, the Apprenticeship and Training Program, the WIRED program and the Statewide Workforce Investment Board is moved into the 21st Century Workforce Technology, Apprenticeship, and Training Bureau. The proposal adds $950,000 over the biennium for administration of a Worker Development and Training Fund, which includes a community college student growth account to quickly respond to rapid growth in high demand fields.

Gov. Schweitzer's FY 2010-11budget is available at: http://www.mt.gov/budget/budgets/2011_budget/2011_budget.asp.

South Dakota
With projected revenues falling $6.3 million short in the current fiscal year, Gov. Mike Rounds urged South Dakota lawmakers not to promise new or expanded state programs without identifying additional revenue sources, according to a Rapid City Journal article. Likewise, the governor is not recommending new funds in the FY10 budget to support key economic development initiatives, including $6 million to advance the state's mission to become a recognized leader in research and technology under goal three of the South Dakota 2010 Initiative.

An advisory council convened last spring by the governor outlined its recommendations earlier this year, calling for $6 million in state spending to recruit and develop researchers, develop shared user facilities and resources supporting the state's R&D efforts, provide matching funds for commercialization in targeted sectors, and support for the Dakota Seed internship program. Spending for these initiatives was included in a list of priorities that are unable to be funded in FY10 as a result of the state's projected deficit. Additionally, the governor left out $2.5 million for year four of the Classroom Connections program, which provides laptop computers to high school students.

The governor's budget proposal maintains current funding for economic development initiatives within the Department of Tourism and State Development, including $25.5 million in total funds for the Division of Economic Development - a slight increase over last year's appropriation (see the March 12, 2008 issue of the Digest) and $4 million for the Division of Research Commerce. The South Dakota Science and Technology Authority would receive an increase of $7.7 million ($27.7 million total) under the governor's proposal.

To view Gov. Rounds' FY10 budget, please visit: http://www.state.sd.us/bfm/budget/rec10/SD_Gov_Rec_2010_Entire.pdf.

Wyoming
Gov. Dave Freudenthal outlined additional spending for university-based research initiatives and entrepreneurship in his FY 2009-10 supplemental budget proposal presented to lawmakers last month. Specifically, the supplemental budget appropriates $440 million in existing carry-over revenues, rather than relying on estimates of future revenues, according to the governor's office.

The governor's budget directs continued spending of federal Abandoned Mine Lands (AML) funds to support research and implementation efforts involving the state's energy resources put into place last legislative session (see the March 12, 2008 issue of the Digest).

Gov. Freudenthal recommends using $30 million in carry-over funding for the University of Wyoming (UW) School of Energy Resources (SER) partnership with General Electric to complete the High Plains Gasification Advanced Technology Center. In total, $70.6 million in AML funds will be available for appropriations during the 2009 legislature session. Additional recommendations outlined by the governor include:
  • $13.6 million to the SER for the Clean Coal Task Force to provide matching funds for research;
  • $10 million for carbon dioxide sequestration research and demonstration projects in partnership with industry;
  • $2 million for the UW College of Agriculture Reclamation Ecology program, of which $1.5 million will be used to seed a proposed $20 million endowment;
  • $1.9 million for the SER's Uranium Production Program; and
  • $734,616 to continue the efforts of the Wyoming State Geological Survey to identify potential carbon dioxide storage sites.
The supplemental budget recommendation includes $17 million in one-time funds for UW's Endowment Match program and $100,000 outside the UW block grant for a brucellosis vaccine R&D program at the university. This initial funding will be used to identify key participants in the research project and establish an agenda, according to budget documents.

The Wyoming Business Council is slated to receive an additional $287,500 in FY10 for entrepreneurial development, business expansion and recruitment efforts.

Gov. Freudenthal's FY 2009-10 supplemental budget is available for download in two volumes at: http://ai.state.wy.us/budget/.
Montana, South Dakota, Wyoming