Maryland Budget Request Includes $43M for BIO 2020 Initiative

In his budget presentation to the legislature last week, Gov. Martin O’Malley called for continued support of his 10-year, $1 billion plan to build Maryland's reputation as a global leader in biosciences. To this end, the governor recommends $43 million in FY11 for stem cell research, tax credits for biotech companies, and support for biotechnology commercialization and translational research.

Gov. O’Malley’s budget includes $12.4 million for stem cell research administered by the Maryland Technology Development Corporation (TEDCO), about the same as last year. Although lawmakers approved $15.4 million for the Stem Cell Research Fund last year, budget documents indicate a FY10 appropriation of $12.35 million. TEDCO would receive a total $15.85 million in FY11 under the governor’s proposal, which is $115,000 more than the FY10 appropriation. This includes $3.45 million for technology development, transfer and commercialization activities through TEDCO’s University Development Transfer Fund and the Maryland Technology Transfer and Commercialization Fund. Additional recommendations in support of Bio 2020 include:

• $6 million (the same as last year) for the Biotechnology Investment Tax Credit to spur investment in Maryland biotech companies;
• $3.8 million ($900,000 less) for the Maryland Biotechnology Center to support biotechnology commercialization and translational research; and,
• $250,000 for the Incubator Support Program.

The governor’s capital budget also includes $16.1 million to construct the new Germantown Bioscience Center at Montgomery College and $5 million for the East Baltimore Biotechnology Park.

Maryland’s four-year tuition freeze on public universities will come to an end this year, reports The Washington Post. Gov. O’Malley made the announcement prior to the opening of the legislative session, adding that in-state students should expect an increase of around 3 percent. The governor’s budget includes $5.2 billion for higher education, 2.2 percent more than last year.

Gov. O’Malley also introduced legislation to make funding for the Higher Education Investment Fund (HEIF) permanent and to establish a Tuition Stabilization Account in the HEIF to avoid large spikes in tuition increases. Created as a dedicated revenue stream for higher education in 2007, the HEIF dedicates a portion of the increase in corporate tax revenues to the fund. It is scheduled to sunset at the end of FY10.

The FY11 executive budget aims to close a $2 billion deficit through more than $1 billion in budget reductions, according to the governor’s office. The FY11 Budget Highlights is available at: http://dbm.maryland.gov/agencies/operbudget/Documents/2011/FY2011BudgetHighlights.pdf.