Idaho governor's technology budget short of council proposal

DATELINE: BOISE Idaho

Gov. C.L. "Butch" Otter has recommended more money in his state budget to boost Idaho's science and technology industry than any previous governor, but the request is less than the amount recommended by the Governor's Science and Technology Advisory Council.

The council, which spent two years working on a proposal to make Idaho more competitive with other states, recommended nearly $50 million, including $25 million to improve research and development efforts at the state's public universities.

In his first proposed budget, Otter requested $15 million overall one-time funding to improve research and development at universities.

Otter spokesman Mark Warbis said the governor is committed to growing Idaho's technology industry. After technology developed at the universities is evaluated, more investment could follow, he said.

"The governor wants things to be proven and show they'll result in economic benefits," Warbis told the Idaho Statesman for a story Monday.

Idaho's current budget allocates $550,000 for programs directly related to the technology industry.

The council also requested $50 million $10 million a year over the next five years in state income tax credits for investors in Idaho bioscience and technology companies. The council's other unbudgeted requests: $10 million to improve broadband access, $2 million to promote Idaho as a technology-friendly state, $300,000 for Idaho's Tech Connect program and $100,000 to continue the Idaho Small Business Innovation Research Program.

Phil Syrdal, president of the Idaho Bioscience Association and co-chairman of a state task force that worked last summer to develop the tax credit, said the association will ask the Legislature to approve the tax credit even without the governor's support.

The proposed bill would give investors a 45 percent transferable credit on state tax liability if they invest in bioscience companies and a 35 percent credit for technology companies.

"We have a state and a governor who indicates he wants to operate in a fiscally conservative manner, and many agree with that approach," Syrdal said. "But on the other hand, we have a serious problem. Budding new businesses and spinoffs from tech companies aren't getting money."

Syrdal said the tax credits could generate more than $125 million in new investment in Idaho companies over five years.

The governor didn't support the tax credit because he wanted to focus instead on the grocery tax credit, Warbis said. He declined to say whether Otter would support the credit if it passes.

"He is not expressing opposition to the investment tax credit, but it is not something he is promoting in the Legislature this year," he said.

Dan Berglund, executive director of the State Science and Technology Institute, a Washington, D.C.-based organization that tracks state spending on science and technology, called the $15 million in Otter's budget a start for Idaho.

"It's a good start, but as a one-time appropriation I'm not sure that's really going to move Idaho forward in comparison with other states," he said. "Most other states make long-term commitments to support research and development in science and tech."

Berglund said Utah spends $19.3 million annually on the Utah Science Technology and Research Initiative program, which is expected to create 123,400 new jobs and generate $5 billion in revenue over the next 30 years. North Dakota spends $10 million a year for its Centers of Excellence program, and South Dakota allocates $19.2 million annually for research.

Information from: Idaho Statesman, http://www.idahostatesman.com