Pennsylvania Budget Includes $208 Million for Tech-based ED, Research

Pennsylvania has been a leader in tech-based economic development for more than two decades. With more than $208 million for tech-based economic development initiatives, the 2001-02 Budget Request submitted by Governor Tom Ridge this week shows why the state remains at the forefront of the field. Coupled with the $61 million in education technology, "Brain Gain," and digital divide initiatives proposed (see Pennsylvania's entry under this week's Tech Talkin' Govs article below), the state is developing a cradle-to-grave strategy for competing in the New Economy. 



The technology-based economic development proposals include: 

• $56.4 million to be provided through a proposed Ben Franklin Technology Development Authority Fund that would merge the four regional Ben Franklin Technology Centers and the Pennsylvania Technology Investment Authority. 
• Use part of a one-time tobacco settlement surplus to make a new investment in Pennsylvania's health -- a statewide BioTech Greenhouse program to be patterned after the Pittsburgh Digital Greenhouse (see related SSTI Weekly Digest story). Seeded with a $90 million investment and sustained by grants from the ongoing settlement, Pennsylvania's BioTech Greenhouses will be research centers of discovery and magnets for talent.
• An additional $33.9 million from tobacco settlement funds to support health-related research proposals at Pennsylvania research institutions. 
• $8.2 million for SciTech and Technology scholarship programs to work in conjunction with the “Brain Gain” initiative to better prepare Pennsylvania’s workforce for the 21st century. Eligible students studying in technology-intensive fields can receive scholarships of up to $3,000 a year under SciTech, in return for committing to stay in the state. The Technology scholarships would provide grants of up to $1,000 to current workers seeking two-year degrees. 
• A $2.5 million increase to the $20 million annual cap on total job creation tax credits, providing additional $1,000 per job tax credits to employers that create new jobs and demonstrate the development or deployment of leading technologies in their industry, to be effective July 1, 2001 

In addition, tech companies would benefit from Governor Ridge's proposals to phase-out the capital stock and franchise tax (cost to state $172.3 million) and expand the sales tax holiday for personal computer purchases to include computer peripherals and Internet access devices. 

More information on the Governor's budget request can be found at: http://www.state.pa.us/PAPower/ under "What's Hot in PA"