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Governor’s Budget Includes $5.9M for KTEC

January 20, 2010

Gov. Mark Parkinson last week unveiled his FY11 budget proposal, which includes $5.9 million from the Economic Development Initiatives Fund (EDIF) for the Kansas Technology Enterprise Corporation (KTEC), down $1.8 million from the FY10 governor’s estimate of $7.75 million. Many of the governor’s budget recommendations, including funding for KTEC and university research initiatives, may hinge on a tax increase proposal, however.

Proposed KTEC reductions include $600,000 in funding that the agency allocated for the Product Development Financing program to make investments in early-stage companies through KTEC Holdings, Inc., a wholly-owned subsidy of KTEC and $143,000 from the Commercialization program used to support the Entrepreneurship Centers and PIPELINE Mentoring program.

Gov. Parkinson is asking lawmakers to approve a 1 percent sales tax increase for three years and an additional 55-cent tax on cigarettes to help fill a projected $380 million budget gap. Funding for KTEC and university research initiatives are among a list slated for possible cuts or elimination if no revenue package is enacted. Last year, KTEC emerged a stand-alone entity following a proposal by former Gov. Kathleen Sebelius to consolidate the agency with the Department of Commerce (see the Jan. 21, 2009 issue of the Digest).

The governor’s budget also includes the following recommendations from the EDIF:

  • $2.4 million for University and Technology Strategic Research, five university-based research centers of excellence;
  • $1 million for the Mid-America Manufacturing Technology Center (MAMTC), which provides business assistance in improving manufacturers’ technical capabilities; and,
  • $346,904 for Kansas, Inc., which conducts economic development planning, policy research and program evaluation.

Gov. Parkinson recommends $10 million from the EDIF for aviation research, training and equipment through Wichita State University. However, $5 million set aside for research also appears on the list of budget-cutting options.

The transfer to the Kansas Bioscience Authority (KBA) is capped at $35 million in the governor’s budget, which would be reduced to $30 million in absence of the tax increase.

The executive budget is available at: http://budget.ks.gov/gbr.htm.

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