USTAR, Clean Energy Zones Big Winners in Final Utah Budget

Utah's 2009 legislative session ended earlier this month with a significant boost in funding to the Utah Science Technology and Research Initiative (USTAR) for recruiting science and technology researchers at the University of Utah and Utah State University.

Lawmakers approved SB 240, allocating $33 million in one-time federal stimulus funds to the state-funded initiative to grow Utah's knowledge economy. The bill also modifies provisions relating to USTAR's Governing Authority adding the executive director of the Governor's Office of Economic Development as a member and vice chair of the authority. The appropriation grew significantly from the earlier version of the bill allocating $10 million for operating expenses and funding for research teams.

The approved FY10 budget includes $15.9 million for USTAR operating expenses with $14.1 million earmarked for Research Teams and $983,400 allotted for Technology Outreach.

The Public Education budget provides $6.2 million ($700,000 less than last fiscal year) for USTAR Centers, a program to extend the school year for math and science teachers. Lawmakers eliminated the remaining $5 million appropriated last year for differentiated performance pay for math and science teachers leaving no remaining funding for the year-old program. A portion of those funds ($300,000) will be used to establish a one-year pilot teacher compensation program based on student achievement in elementary schools.

In addition to existing funds of $250,000, lawmakers added $2 million in one-time funds for the Engineering Initiative within the Higher Education budget. This program seeks to increase the number of engineering graduates throughout the state.

To provide a competitive edge for recruiting clean-energy businesses, lawmakers passed HB 430, creating renewable energy development zones and providing a refundable tax credit on 100 percent of tax liability for alternative energy projects within the zones. The legislation stipulates that incentives are "post-performance" and businesses must meet standards set by the Governor's Office of Economic Development. These include direct investment within the boundaries of a zone, creation of new incremental jobs in the state, significant capital investment or the creation of high paying jobs or significant purchases from Utah vendors and providers, and the generation of new state revenues.

The enrolled version of the budget bill is available at: http://le.utah.gov/~2009/htmdoc/sbillhtm/sb0002.htm.