Florida Gov. Wants $100M for Innovation Incentive, $32.6M for Space Florida

Replenishing the Innovation Incentive Fund and investing in space industry, public research, and green energy technologies are among Gov. Charlie Crist's FY11 budget recommendations to grow the state's innovation economy and establish Florida as a pre-eminent global hub. The governor's budget includes $100 million for the Innovation Incentive Fund, which was established in 2006 to attract R&D companies and create high-wage jobs. The fund was depleted in 2008 (see the May 7, 2008 issue of the Digest).

Space Florida would receive a total $32.6 million, of which $20 million is slated for business recruitment activities in order to provide the necessary resources that align with a new national approach to space exploration, according to budget documents. To provide financing for new and expanding space businesses, the governor recommends $10 million. Another $3.8 million is set aside for general operations, $3.2 million for workforce development, and $3 million to fund targeted projects for business development and recruitment.

The remaining $12.6 million is slated for development and management of facilities for space industry businesses. This funding would be used for investment in Exploration Park, a 60-acre technology and commerce park, to refurbish Launch Complex 46, a multi-use commercial launch facility, and to provide for the renovation of facilities for use by entities fulfilling NASA and Air Force contracts.

The governor's budget also includes funding to support technology commercialization through Florida Biomedical Research Programs and the Florida Institute for Commercialization of Public Research. The budget recommendation includes $50 million total ($25 million apiece) in recurring budget authority in the Biomedical Research Trust Fund for the James and Esther King Biomedical Research Program and the William G. Bankhead and David Coley Cancer Research Program. Awards from these grant programs are based on scientific merit determined by open competitiveness peer review. This restores $50 million in budget authority that was appropriated in FY10 on a nonrecurring basis, according to budget documents.

The Florida Institute for Commercialization of Public Research would receive $15 million in FY11. Established in 2007, the institute serves as a one-stop-shop for investors, entrepreneurs, and corporate partners seeking to develop new ventures based on research performed in Florida. No funding for the institute is reflected in the current year budget.

Enterprise Florida, a public-private partnership serving as the state's primary organization devoted to statewide economic development, would receive $6.95 million in FY11, an increase of $450,000. Other economic development incentives include:

• $25 million for the Quick Action Closing Fund ($11.5 million increase) to help the state attract new and expanded existing high-impact businesses; and,
• $21.4 million, including $17.1 million in nonrecurring general revenue and $4.3 million from the Economic Development Trust Fund, to support the Qualified Target Industries Tax Refund Incentive, and the Qualified Defense Contractors Tax Refund Incentive. This is a cumulative decrease of $230,500 from last fiscal year.

To continue the Economic Gardening pilot program implemented in FY09, the governor recommends $3 million. The goal of the program is to identify companies with up to 50 employees and help them expand by offering services such as market information, leadership development, and assistance in digital media applications. FY11 funding would be directed to helping local communities create their own programs. The University of Central Florida would receive $250,000 for administration of the grant program and training for grant awardees.

Funding for the State University System would increase by $100 million in FY11 with the funds aimed at building research and education capacity in science, technology, engineering, mathematics and medicine. Dubbed the "New Florida Initiative," the goal is to increase the number of state university graduates and researchers in these fields to address critical workforce and economic development needs.

The governor's FY11 environmental budget dedicates a portion of federal funding received last fiscal year to developing green energy technologies. Specifically, $126 million is slated for the State Energy Program to deploy renewable energy and energy-efficient technologies. Another $36 million is slated for the Florida Energy Opportunity Fund and $10 million would be used for Florida Clean Energy Grants.

The FY11 executive budget is available at: http://www.ebudget.state.fl.us/.