UT Budget Provides $25.7M for USTAR in FY12; $750,000 for Economic Clusters

The FY12 Business, Economic Development and Labor budget approved by lawmakers includes $25.7 million for USTAR, the state-funded initiative to grow a knowledge-based economy. This is the same amount recommended by Gov. Gary Herbert, but down from FY11 projected spending of $35.4 million. That amount included some ARRA funding from previous years, however. Research Teams will receive $23 million and $1.9 million is slated for Technology Outreach.

USTAR's recent annual report points to impressive returns for the state, especially over the last six months, during which time USTAR researchers increased grant funding by 50 percent. Since its inception in 2007, USTAR researchers have received $66 million in out-of-state funding. In the last two years, the outreach team helped Utah companies secure $35 million in outside investment, the majority coming from angel and venture capital investors.

The approved budget for Higher Education includes a one-time appropriation of $750,000 under the Governor's Excellence in Education Task Force to expand the Utah Cluster Acceleration Partnership (UCAP). UCAP initiates and formalizes partnerships between institutions of higher education and industry clusters vital to Utah's economy (see the Jan. 5, 2011 issue of the Digest).

Lawmakers approved a measure authorizing a one-time tax credit for the life sciences industry in the amount of $1.3 million for FY12. The Technology and Life Science Economic Development Act also authorizes a one-time appropriation of $200,000 to the Governor's Office of Economic Development to implement provisions of the bill.

The FY12 enacted base budget for Business, Economic Development and Labor is available at: http://le.utah.gov/~2011/bills/hbillenr/hb0005.pdf. The 2011-12 supplemental appropriations act is available at: http://le.utah.gov/~2011/bills/sbillenr/sb0002.pdf.