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Mixed Results for TBED in State Budget Proposals

January 16, 2008

Coinciding with a plethora of state-of-the-state addresses delivered over the past week, several governors have released budget recommendations for the upcoming fiscal year. The following states’ budgets include crucial TBED investments and reductions in programs.



California

Upon declaring a fiscal emergency and calling a special legislative session to address the current-year budget deficit of $3.3 billion, Gov. Arnold Schwarzenegger unveiled his fiscal year 2008-09 budget recommendation to lawmakers alongside the proposed budget stabilization plan aimed at reducing the deficit.



The proposal calls for 10 percent reductions to nearly all general fund departments and programs, boards, commissions and elected officials, with limited exceptions.



Gov. Schwarzenegger’s fiscal year 2008-09 budget does include funding for the Science and Math Teacher Initiative. Under the governor’s proposal, the workload budget includes an ongoing $2.7 million for California State University and $1.1 million for the University of California to continue its efforts to address the shortage of math and science teachers in public schools. Assuming proportional reductions are made to the programs, $3.4 million would remain available for the effort, according to budget documents.



Idaho

Last week, Gov. Butch Otter announced the Governor’s Science and Technology Advisory Council would be disbanded after eight years in existence. The group was created by former Gov. Dirk Kempthorne and tasked with developing a strategic S&T plan for the state, which was unveiled in 2001 (see the Jan. 19, 2001 issue of the Digest). The recommendations failed to garner legislative support, and the council identified new areas for state investment in 2006 (see the Oct. 2, 2006 issue of the Digest), which also failed to receive funding. Idaho Commerce Director Jim Ellick said it was possible the council could be replaced with an innovation-focused council or advisory group, according to an article in the Idaho Statesman.



Gov. Otter’s FY09 budget recommendation removes one-time funding of $300,000 – the level of funding appropriated the last two fiscal years – for the state’s TechConnect Centers, which assist entrepreneurs and technology businesses. Additionally, there is no funding included for the Entrepreneurial Fund, an initiative to provide high-tech entrepreneurs with training and development assistance.



The budget includes $1 million in one-time general funds to the Business and Jobs Development Fund within the Department of Commerce – the same funding level as last year. Gov. Otter also is proposing the creation of the Office of Energy Resources, directing $3.6 million to the effort in FY09. The Broadband Fund is slated to receive $4.3 million and would be moved from the Department of Commerce to the Department of Labor.



Gov. Otter’s capital budget proposal allots $10 million toward a new $35 million research center at Boise State University to support education, research and outreach involving environmental science and economic development. Ongoing funding of $5 million is included for the Community College of Western Idaho, which is expected to open in 2008.



New Mexico

Gov. Bill Richardson’s FY09 budget recommendation includes only a fraction of the funding for TBED initiatives included in last year’s budget proposal (see the Nov. 20, 2006 issue of the Digest).



The Technology Commercialization Program under the New Mexico Development Department would receive $263,000 – 1.5 percent less than the FY08 appropriation. The governor recommends $2.3 million – a $174,000 decrease over last year – for the Renewable Energy and Efficiency Program due to anticipated loss of federal funds. The program promotes renewable energy and the use of alternative fuels and transportation.



The Spaceport Authority would receive a substantial boost in FY09. Gov. Richardson recommends $826,000 – a 126 percent increase – for the development of spaceport facilities to actively promote and assist private and public sector infrastructure development to attract new business industries and create new jobs. Additionally, the governor recommends two performance measures for the Authority in FY09, including annual aerospace jobs created due to Spaceport Authority efforts.



South Carolina

Gov. Mark Sanford proposed increasing the Palmetto Fellow Scholarship by $5 million and the LIFE Scholarship by $14 million in his FY09 budget recommendation. Both scholarships are merit-based, and beginning last fall, students receiving the scholarships were eligible for additional money if they pursued degrees in science, mathematics, computer science, informational technology, engineering, science and math education, and healthcare-related disciplines. The goal is to increase the number of college graduates in math and science to support the knowledge-based economy.



Under the new program, LIFE scholarship recipients who major in math and science are eligible for up to $7,500 per year beginning their sophomore year – up from $5,000 per year. Palmetto Fellow Scholarship recipients meeting eligibility requirements can receive up to $10,000 per year – up from $7,500.



Gov. Sanford’s FY09 budget proposal includes $3.4 million – current level funding – for agricultural biotechnology research at Clemson Public Service Activities. Efforts are coordinated with the South Carolina Biotechnology Incubation Facility and the Department of Commerce to recruit companies and assist with new company start-ups.



The governor’s budget also would maintain current level funding of $2.3 million for the Center for Accelerated Technology Training. Recurring funding of $2 million is requested for the International Center for Automotive Research at Clemson University and $367,640 for start-up and ongoing expenses for a statewide Hydrogen Fuel Cell Coalition.

California