Reaction to Eliminating Emerging Technology Fund

A funding source for multiple economic development projects in the biocorridor and Texas A&M is proposed to go away.

Governor Abbott has proposed abolishing the Emerging Technology Fund (ETF) and using the remaining money to recruit university researchers and woo new business and industries through the Texas Enterprise Fund (TEF).

The ETF provided assistance to create among other things, biocorridor vaccine producer Kalon Biotherapeutics, a wind energy farm through the Texas A&M Energy Institute, and a center operated by the A&M vet school and the Texas Heart Institute to address diseases that result in cell and organ failure in both humans and animals.

Texas A&M System Chancellor John Sharp issued a statement that did not address eliminating the ETF. As for creating a fund to recruit university researchers, Sharp considered that “a brilliant way to move life-changing and game-changing research to Texas.”

The president of the Research Valley Partnership (RVP), Todd McDaniel, says they received $380,000 thousand dollars in state support and have met performance milestones. The RVP has served as one of the state’s regional centers to consider ETF funding requests. McDaniel says the RVP has no ETF requests at this time.

McDaniel estimated the ETF has a fund balance of $100 million.

Click below for comments from Todd McDaniel, visiting with WTAW’s Bill Oliver.

 

Click HERE to learn more about the Emerging Technology Fund:

Here are details of Governor Abbott’s proposal as released by his office:

1. Eliminating the Emerging Technology Fund (ETF) and transferring the ETF’s existing portfolio to the Texas Treasury Safekeeping Trust Company, which is chaired by the Comptroller of Public Accounts and employs professional money managers who will work to maximize returns to the State;

2. Reallocating 50% of the ETF’s unexpended balances to the Higher Education Coordinating Board to fund the Governor’s University Research Initiative, which would help fund the recruitment of Nobel Laureates and Members of the National Academy (or equivalent) to Texas public universities;

3. Reallocating 50% of the ETF’s unexpended balances to the Texas Enterprise Fund to enhance the State’s ability to recruit and retain businesses and job opportunities to Texas.

Under Governor Abbott’s proposal, which requires legislative approval, the Governor’s University Research Initiative would be available to provide matching funds to Texas public universities for the recruitment of Nobel Laureates and National Academy members. Governor Abbott particularly urges Texas colleges and universities to focus on recruiting nationally and internationally recognized researchers in fields of science, technology, engineering and math. Because there are substantial start-up costs associated with recruiting nationally-renowned researchers, the Governor’s University Research Initiative would be available to help ensure Texas public universities have access to additional recruitment resources. Any Texas public institution of higher education seeking to recruit a Nobel Laureate, Academy Member, or their equivalent would be eligible to seek matching funds on a dollar-for-dollar basis from the Governor’s University Research Initiative. The Initiative would not be available to fund the recruitment of researchers from another Texas public university.

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