Texas Governor Wants $300M Boost for Emerging Technology Fund

Texas Gov. Rick Perry unveiled his budget proposal for fiscal year 2008-09 with an additional $300 million to recapitalize the state’s Emerging Technology Fund (ETF). The program provides loans and grants to commercialization projects with ties to state universities, and to create research centers in key technology areas. The funding would represent a significant expansion of the program, which received $200 million when it was established in 2005 and no new funding in 2006.

 

Another program, the Texas Enterprise Fund, would receive $182 million to continue its activities. The Enterprise Fund was the predecessor of the ETF and was created in 2003 to attract larger employers to the state. High-tech employers, such as SEMATECH, Samsung, and Texas Instruments have been a particular focus of the program. The program was initially viewed as the state’s leading initiative to create new high-tech jobs. However, the perception may be changing. In 2003 and 2005, the fund received $300 million, the amount proposed for the ETF this year. The increase in funds for ETF, which focuses on smaller, early-stage deals, may represent a shift in priorities for the state.

 

The proposed budget calls for $21.6 billion for business and economic development, an 11.4 percent increase over FY 2006-07 levels. Additionally, the governor has proposed to sell the state lottery, a move that could generate an estimated $14 billion to invest in secure trust funds. Gov. Perry has suggested that the interest from one of those funds could provide $300 million annually for the state’s new Texas Cancer Research Initiative. The initiative, which would receive $130 million under the governor’s FY 2008-09 budget, provides funds to attract cancer researchers and pay for research projects and facilities.

 

For more information on Gov. Perry’s FY 2008-09 budget, visit: http://www.governor.state.tx.us/divisions/bpp/budget/files/budgetsummary2008-09.pdf