Tech-based ED Prominent in Illinois Governor's '07 Budget Request

Stem cell research, an expanded tax zone redevelopment initiative and faculty/researcher recruitment are all beneficiaries in the fiscal year 2007 budget proposal submitted by Illinois Gov. Rod Blagojevich last week. In addition, while overall funding for the state Department of Commerce and Economic Opportunity (DCEO) is down 16 percent from the FY 2006 appropriation, the governor's request includes several new programs to assist technology entrepreneurship. Highlights of the economic development portions of the budget are provided below.

$15M More for Stem Cell Research

During his Feb. 15 budget address, Gov. Blagojevich announced a new initiative for funding stem cell research. By executive order in July 2005, Gov. Blagojevich created the Illinois Regenerative Medicine Institute and awarded $10 million in grants to support stem cell research (see the July 18, 2005 issue of the Digest). Under the governor's new initiative, $100 million over five years would be dedicated to the institute to continue research efforts. Funding would be made available by using a portion of the state's share of tobacco settlement funding. The budget request includes a $15 million grant for FY07, which would increase by $2.5 million annually.

River Edge Redevelopment

The governor also unveiled the proposed River Edge Redevelopment Initiative, which is part of his Opportunity Returns economic development strategy. The initiative includes the designation of redevelopment zones across the state that will be eligible to receive tax credits, exemptions and $20 million in new grant funding to support clean-up, remediation and redevelopment efforts leading to economic revitalization.

SBIR, Tech Entrepreneurship

The general fund budget request for DCEO is $67.8 million, down from the enacted $80.8 million in FY06.  Funding for new programs within DCEO includes $1 million for the Innovation Challenge Grant Program to assist companies by providing bridge funding for SBIR/STTR grants and $1 million for the Entrepreneur-in-Residence Program to develop management talent and serial entrepreneurs. Funding requests for existing programs within DCEO include:

• $5 million for the 20 Entrepreneurship Centers, up from $4 million in FY06;
• $2.5 million for Small Business Development Centers, the same level as FY06; and
• $750,000 (no change) for the Illinois VENTURES Initiative to provide technical assistance and development funds for commercialization of technology and research at the University of Illinois.

Gov. Blagojevich's Budget Plan for FY 2007 is available at http://www.illinois.gov/.