Lawmakers Approve Funding for TBED Initiatives in State Budgets

Three states recently wrapped up their 2008 legislative sessions, resulting in the passage of operating and capital budgets for the upcoming fiscal year. State lawmakers approved funding for new and existing TBED initiatives aimed at diversifying the states' economies through increased investments in energy programs, higher education research initiatives and science, technology, engineering and mathematics (STEM) fields. 



South Dakota

Lawmakers agreed to Gov. Mike Rounds’ recommendation of a one-time appropriation of $3.8 million for construction-related expenditures and $887,000 in operating costs to supplement an $8 million grant for a high speed data network connecting universities and research centers across the state (see the Dec. 12, 2007 issue of the Digest).

 

The legislature also supported a bond proposal for science facility and laboratory upgrades at the state’s six public universities. HB 1085 authorizes the South Dakota Building Authority to finance up to $74.5 million through the issuance of bonds for projects that are part of an overall strategy to boost the state’s research capabilities.

 

The fiscal year 2009 approved budget includes $25.4 million in total funds for the Division of Economic Development within the Department of Tourism and State Development, the same level requested by the governor. The recommendation for the Division of Research and Commerce is $4 million from the general fund, and the South Dakota Science and Technology Authority is slated to receive $19.2 million in other funds, a slight increase over FY08.



A $3 million increase was approved for the state's four postsecondary technical institutes -- $2 million for program enhancements and equipment purchases and $1 million for maintenance and repairs. Gov. Rounds opposed the measure and criticized lawmakers for providing funding for the technical institutes while rejecting his proposal of $2.9 million for the third year of the Classroom Connections program, which provides laptop computers to high school students, reports the Associated Press. Lawmakers also rejected the governor's proposal for a mobile computing environment for the state university system and failed to pass a bill that would require the Department of Education to develop a framework for a high school for the 21st century with project-based curriculum in STEM fields.



A bill to provide a 2-cent tax reduction for biodiesel blended fuel supported by the governor was passed by the legislature. Gov. Rounds has until March 17 to veto the bills.



Utah

Lawmakers passed the FY09 budget and FY08 supplemental appropriations last week, providing additional funds for the Utah Science, Technology and Research Initiative (USTAR) and directing any remaining funds from last fiscal year to the governing agency. The USTAR Governing Authority is slated to receive $19.3 million in general funds, which includes $11 million for research teams and $4.9 million for Technology Outreach. An additional $2.5 million is included for a one-time expenditure for USTAR research teams and $12 million is earmarked in the capital budget for USTAR research buildings. Another $6.9 million is included in the Public Education budget to establish USTAR Centers, a program to extend the school year for math and science teachers.



Lawmakers also passed SB 103, providing more than $20 million to the state's institutions of higher education from the Education Fund for FY 2008-09 enhancements, according to the Utah Daily Chronicle. This includes funding to advance math and science fields, promote regional economic development, improve laboratories, and hire more science faculty. Additional higher education initiatives slated for funding within the budget include:

• $4.7 million in total funds for the Higher Education Technology Initiative;
• $1 million for the Utah College of Applied Technology Jobs Now Campus Initiative to expand existing and implement new training programs;
• $800,00 for Weber State University Aerospace Defense Employment to help respond to the need for qualified employees in the aerospace and defense industries; and,
• $250,000 in one-time funding for the Engineering Initiative to increase the number of engineering graduates throughout the state.

Within the Public Education budget, lawmakers approved $4.6 million for differentiated pay for math and science teachers, providing additional compensation to teachers who meet defined education level qualifications. The budget also provides $400,000 for the Utah Science Center and statewide outreach services for informal science education enhancement providers, an Office of Education initiative that provides opportunities for students to experience science and practice science skills through outreach programs and class field trips.



Additional legislation to pass during the 2008 session of interest to the TBED community includes:

• SB 11 – Utah Venture Capital Enhancement Act Amendments authorizes the Utah Capital Investment Corporation to receive loans and issue debt obligation on behalf of the Utah Fund of Funds and increases the current Fund of Funds backing of $100 million in tax credits to $300 million.
• HB 52 – Research Activities Tax Credits amends the corporate franchise and income taxes chapter and the individual income tax act to address tax credits for research activities. The bill modifies the tax credit percentages from 7 percent to 5 percent.
• HB 37 – Utah Business Resources Centers Act creates a partnership between the Governor’s Office of Economic Development and the state’s institutes of higher education. The centers will coordinate economic development activities and measure economic impact. The budget includes $125,000 to establish the centers.
• SB 185 – Economic Development Incentives Act modifies the process and criteria for granting economic development incentives to business entities for new commercial projects and replaces cash economic incentive payments with tax credits to qualifying businesses.

Wyoming

The FY 2009-10 biennial budget bill signed into law last week by Gov. Dave Freuenthal provides funding for several energy-related projects across the state. The legislature appropriated funding for specific energy development projects in anticipation of grants from the state of Wyoming's share of abandoned mine land funds (see the Dec. 12, 2007 issue of the Digest), including:

• $20 million for the University of Wyoming (UW) School of Energy Resources for the development, construction and operation of a high plains gasification facility and technology center;
• $17.4 million for the UW School of Energy Resources for the advancement of energy resources;
• $10 million for county road and bridge construction necessary for the proposed construction of a coal-to-liquids conversion facility in Carbon county;
• $3.8 million for clean coal technology research; and,
• $1.2 million for evaluation of potential carbon dioxide sequestration sites and activities related to the advancement of clean coal and carbon management activities.

Additionally, lawmakers appropriated $1.8 million from the clean coal research account to fund research projects recommended by the Clean Coal Research Task Force to the Joint Minerals, Business and Economic Development Interim Committee. The legislation stipulates that funds are not to be appropriated until the university has received the full matching amount specified for a particular project.



The task force is required to issue a report to the governor and interim committee by Sept. 30 of 2008 and 2009 with recommendations regarding funding for specific proposals for research into clean coal technologies. The budget also directs $2.5 million from the general fund to a separate account for clean coal technology research that must be matched dollar-for-dollar with non-state funds. Gov. Freudenthal also signed legislation this session (HB 89 and HB 90) to establish a comprehensive regulatory framework for carbon capture and sequestration.



The FY 2009-10 budget allocates $123.6 million to the Wyoming Business Council, a slight increase over the governor's recommendation of $123.5 million. The Community College Commission is slated to receive $244.9 million, down from the governor's recommendation of $245.3 million. Another $4 million from the general fund is included for the community college endowment challenge fund.



The budget also provides $135,000 over the biennium for the Community Colleges Task Force Planning Study. The task force is charged with evaluating the existing community college system and developing recommendations in conjunction with the statewide college system strategic plan. The study, due to legislators on Nov. 1, 2008, will determine student population projections and projected state academic and workforce needs to ensure a skilled workforce.



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