University Initiatives Slated for Increased Funding in Arizona Budget

With a budget management plan for the current fiscal year making its way through the state legislature, Gov. Janet Napolitano announced increased funding and borrowing for university programs and research initiatives in her fiscal year 2009 budget recommendation.



Universities would receive a net funding increase of $25.4 million over the FY08 appropriation under the governor’s recommendation, including $7 million to recruit, teach and retain teachers in Science, Technology, Engineering and Mathematics areas. Gov. Napolitano recommends $3 million in FY09 to the University of Arizona (UA) and $2 million each to Arizona State University-Tempe and Northern Arizona University to expand on a student loan program for math, science and special education teachers approved by lawmakers last year (see the June 27, 2007 issue of the Digest). Additionally, UA’s budget includes $1.5 million to expand and implement programs for teacher training, entrepreneurship and commerce- and defense security-related disciplines that will meet the workforce needs of the southern parts of the state.



Lawmakers will be asked to approve a $470 million bond proposal that would be used to complete the Medical Education Building and Arizona Biomedical Collaborative at the Phoenix Biomedical Campus. This request – within the governor’s capital budget for universities – proposes establishing a Capital Acceleration Program to create a pool of funds that the universities can leverage to meet the financial obligations of two phases for the project, which totals $1.4 billion.



Under the proposal, Phase I, which requires the approval of $470 million to complete the Arizona Biomedical Campus, would be structured so that initial payments on the bonds begin in FY10. Phase II addresses remaining capital needs on each university campus and requires $966 million, with debt service payments beginning in FY11.



Gov. Napolitano’s FY09 budget offers continued support for TBED-related initiatives funded last year, including $25 million in the coming year for the Arizona 21st Century Fund and $1.5 million for the Arizona Biomedical Research Commission (see the June 27, 2007 issue of the Digest). Additional non-appropriated funds of $12 million (a decrease of $900,000) from the Health Research Fund and $4.4 million (the same level as FY08) from the Disease Control Research Fund also are included for the commission. These funds are statutorily appropriated and not subject to the annual and biennial appropriation process.

 

The University of Arizona Health Sciences Center is slated to receive $96.5 million in total funds – a slight increase over the FY08 appropriation of $95.1 million.



In October, Gov. Napolitano unveiled a newly structured model for economic development in the state through the Arizona Economic Resource Organization (AERO, see the Nov. 7, 2007 issue of the Digest). To strengthen the research administration and enable AERO to continue building a community and global-based focus, the governor recommends $774,400 for FY09 funding. This includes funding for two labor market economist positions and two previously unfunded vacant research positions to assist rural and small Arizona communities.



The funding level for the Department of Commerce is $19.8 million in total funds ($16.9 million from the General Fund), an increase over the FY08 allocation of $18.9 million, and $2 million is included for rural broadband connectivity within the Government Information Technology Agency (GITA) budget, an initiative that requires a partnership between the Department of Commerce and GITA, budget documents note.



Gov. Napolitano’s FY 2009 budget recommendation is available at: http://www.ospb.state.az.us/