Legislative Actions & Tech Talkin' Govs 2006, Part III

The third installment to Walkin' the Tech Talkin' Gov Walk (see the April 17 and May 8 issues of the Digest) covers the outcomes of the 2006 legislative sessions for two states, Illinois and Wisconsin. Following is a synopsis of bills passed and budget appropriations relevant to tech-based economic development and the priorities outlined in respective gubernatorial addresses at the beginning of 2006.



Illinois

The General Assembly approved and Gov. Rod Blagojevich signed into law the FY 2007 budget last month. The General Assembly passed most of the governor's initiatives, including funding for new programs within the Department of Commerce and Economic Opportunity (DCEO), increases in higher education, and approval and funding for the River Edge Redevelopment Initiative. According to news reports, the legislature did not include $15 million requested by the governor for stem cell research.



The General Assembly approved funding for all of the programs within DCEO (refer to SB 1520) requested by Gov. Blagojevich, which includes funding for two new programs:

• $1 million for the Innovation Challenge Grant Program to assist companies by providing bridge funding for SBIR/STTR grants; and
• $1 million for the Entrepreneurship-in-Residence program to develop management talent and serial entrepreneurs.

Funding for existing programs within DCEO include:

• $5 million for the 20 Entrepreneurship Centers;
• $2.5 million for Small Business Development Centers; and
• $750,000 for the Illinois VENTURES Initiative to provide technical assistance and development funds for technology commercialization and research at the University of Illinois.

Also included in the budget is a $48 million increase for higher education. According to the governor's press office, universities will receive more than $426 million to help attract and retain the best faculty and increase other school programs. Community College grants will increase by nearly $7 million.



Also passed during this session is the governor's River Edge Redevelopment Initiative (see the Feb. 20 issue of the Digest). The initiative designates redevelopment zones in areas adjacent to rivers that have economic development potential. Under SB 17, zones are eligible to receive tax credits, exceptions and potentially new grant funding to support clean-up efforts that lead to revitalization.



Wisconsin

Gov. Jim Doyle won legislative approval for several of his economic development initiatives during this session. The governor signed AB 208 in April, which creates enterprise zones and provides $10 million in economic development tax credits. The program, to be administered by the Department of Commerce, will provide $10 million in refundable tax credits for businesses located in designated zones anywhere in the state that create jobs and train workers. The bill also provides several financial incentives for businesses to locate, invest, and expand in the state. Gov. Doyle issued a number of vetoes in reference to the bill, which are available at: http://www.wisgov.state.wi.us/docview.asp?docid=6740



The governor signed into law SB 352 to create the Wisconsin Aerospace Authority (WAA) to develop and operate spaceports and related facilities and services providing the authority with the power of condemnation, authorizing municipalities to develop and operate spaceports, and making an appropriation. The bill creates a nine member board, giving them authorization to issue bonds to support any spaceport, facility or service of WAA.



Also during the session, Gov. Doyle won approval from the state Building Commission for his $150 million proposal for the first phase of the Wisconsin Institute for Discovery. According to the governor's press office, financing for the plan includes a $50 million alumni gift, which will be matched by the Wisconsin Alumni Research Foundation and $50 million from the state. Approval by the commission is the final step before construction begins in December 2007. Gov. Doyle proposed the Institute for Discovery in 2004 as part of a statewide strategy to raise the state's status as a leader in biotechnology and stem cell research (see the Nov. 22, 2004 issue of the Digest).



Legislation to support the Biomedical Technology Alliance in Southeast Wisconsin, SB 372, proposed by Gov. Doyle during his State-of-the-State Address, failed to pass during this session (see the Jan. 23 issue of the Digest). However, it may be reintroduced sometime in the next session.



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