Budget Proposals Produce Mixed Bag for TBED Programs

As governors across the nation seek to fill record deficits, many new and longstanding TBED initiatives are facing challenging cuts or elimination. At the same time, governors are shoring up support for critical, targeted investments in the economy that they say are needed now more than ever. Using the platform of the state of the state, budget and inaugural addresses, several governors have announced new or increased investments in workforce innovation, bioscience, and alternative energy (see the Jan. 7, 14, and 21 issues of the Digest). Summarized below are executive recommendations from budget proposals in Georgia, Idaho and Vermont outlining new plans and proposed cuts to ongoing TBED efforts.

Georgia
Gov. Sonny Perdue unveiled his fiscal year 2010 budget earlier this month alongside a $1.2 billion bond proposal focusing on infrastructure projects to boost the state's economy. The governor is seeking to fill a projected $1.2 billion deficit in the current fiscal year.

Within the Board of Regents, the Research Consortium would be reduced by $9.2 million in FY10. This includes elimination of funding for the Traditional Industries Program ($3.1 million), reduced funding for Vaccine Initiative Collaboration grants ($1 million) and Technology Partnership Grants in the Georgia Research Alliance program. Another $400,000 would be eliminated for the bio-refinery.

The governor's budget also reduces by $498,910 funding for Innovation and Technology within the Department of Economic Development, which provides leadership for the recruitment, growth and marketing of the bioscience and technology industry.

Gov. Perdue is requesting $2.9 million for the Math and Science Mentor subprogram and the Teacher Success/CLASS Keys program, which provide salary bonuses to teachers in exchange for mentoring other teachers in science and math. However, two programs aimed at increasing student interest in science, technology, engineering and mathematics (STEM) are slated for elimination within the Department of Education. This includes $750,000 for the National Science Center and Foundation and $250,000 for the Georgia Youth and Science Technology Center, a program that seeks to generate interest in STEM fields for elementary and middle school students and teachers.

The capital budget includes a $10 million proposal for science-based economic development equipment and infrastructure.

Gov. Sonny Perdue's FY10 executive budget is available at: http://www.opb.state.ga.us/media/9848/2009-01-26_web_fy2010_state%20of%20georgia%20budget.pdf.

Idaho
To grow the state's Gross Domestic Production from $51 billion to $60 billion over the next six years, Gov. Butch Otter is asking lawmakers to support a new initiative that targets growth in the areas of energy, high technology, medical technologies, agribusiness and the food industry. The project seeks to establish a highly skilled workforce and capitalize on technology transfer activity at the state's institutions of higher education.

The governor's FY10 proposed budget includes $850,000 for the initiative, called Project 60, within the Department of Commerce. Other TBED initiatives, however, do not fare so well within the executive budget. Gov. Otter recommends eliminating $150,000 for the TechConnect Centers, which support entrepreneurship, university-industry collaboration and technology commercialization. No new funding is recommended for Business and Jobs Development, which received $600,000 last year; budget documents note spending authority to use the interest generated from FY09, which equals $120,000. The governor's proposal also eliminates funding for Small Business Assistance Grants, which received $100,000 last year.

Within the Colleges and Universities budget, the governor recommends $1.6 million for the Center for Advanced Energy Studies. Last year, lawmakers restored funding of $1.6 million for the Center at University Place in Idaho Falls after the governor recommended eliminating the funds (see the March 26, 2008 issue of the Digest). This is a partnership between Idaho universities and the federal government through the Department of Energy and the Idaho National Laboratory. The governor's recommendation includes $1.3 million in ongoing general funds plus $312,000 for operating expenses.

The governor recommends $26.25 million in total funds (down from $28.3 million approved in FY09) for the Agriculture Research and Extension Service, which supports agricultural research and extension programming at 13 university centers throughout the state.

Gov. Butch Otter's FY10 executive budget is available at: http://dfm.idaho.gov/cdfy2010/Index2010.htm.

Vermont
During his inaugural address earlier this month, Gov. Jim Douglas urged lawmakers to pass a proposed multi-part strategy for economic development that focuses on encouraging emerging industries to locate or expand in the state. The Economic Growth Plan unveiled in September consists of seven strategies, including R&D tax credits for Vermont businesses that mirror the federal R&D tax credits, a Vermont Innovation Challenge to facilitate the development of new ideas and products by companies and entrepreneurs, and creation of Green Growth Zones. Within these zones, a renewable energy source will serve as the hub around which businesses can locate and create jobs with special incentives such as financing, expedited permitting and lower electric rates, according to the governor's office. The entire zone will be considered a 10-year tax-increment financing zone under the proposal.

To meet the needs of the changing economy, Gov. Jim Douglas is asking lawmakers to approve $7.3 million in FY10 for the Next Generation Initiative, which funds scholarships, loan forgiveness and workforce initiatives linked to higher education. Lawmakers approved $8 million for the initiative in FY09. The governor's budget recommends $3.2 million for workforce development programs, including $237,500 for acquiring patents and commercializing technology created at the University of Vermont.

The FY10 budget includes $760,000 to the Vermont Telecommunications Authority for operating expenses related to the e-State initiative, the governor's plan to provide universal access to broadband and wireless technology anywhere within the state's borders (see the Jan. 8, 2007 issue of the Digest). Another $1 million is included in the capital budget for continuation of the broadband grant program. This partnership between the state's electric utilities will provide high-capacity broadband and support Smart Grid energy technologies, according to budget documents.

Within the Department of Agriculture, Gov. Douglas is proposing $300,000 for renewable energy grants to accelerate development and deployment of renewable energy technologies.

Gov. Jim Douglas's FY10 executive budget is available at: http://finance.vermont.gov/sites/finance/files/pdf/state%20budget/FY2010ExecBudRec.pdf.