BROCK VERGAKIS - The Associated Press | Posted: Monday, March 13, 2006 11:00 pm
SALT LAKE CITY -- Utah's public research universities will receive more than $69 million to expand their commercial research capabilities in an effort to spur economic development in the state.
The bill, signed into law Monday by Gov. Jon Huntsman Jr., establishes the Utah Science Technology and Research Governing Authority to oversee the construction of a bio-research institute at Utah State University and a neuroscience and biomedical technology research building at the University of Utah.
The USTAR initiative is one of the cornerstones of Huntsman's economic development plan and is estimated to create more than 120,000 new jobs at 422 companies that university officials believe will be formed as a result of commercial research conducted at the two campuses.
"USTAR is part of grasping the future. This is all about the next 20 years," Huntsman said.
Huntsman also wants to make the state more competitive in recruiting business by revamping the state tax code. An effort to create a single income tax rate of about 5 percent, reducing it from the 7 percent most people in Utah pay, failed to gain approval during the Legislature earlier this year. Huntsman is expected to call a special session to revisit the tax code in May.
The USTAR research project had the backing of many of the state's businesses. Scott Anderson, CEO of Zions Bank, said business leaders were concerned that Utah workers' salaries are about 82 percent of the national average. Attracting research and companies that spin off from it, he said, would keep the state's economy and Utah workers' pocketbooks growing.
The bill allocates $50 million for construction of research buildings at Utah State University and the University of Utah. Another $15 million will be spent to attract research faculty to the two schools and $4 million to establish a technology outreach program. The technology outreach program will consist of five campuses placed throughout the state to assist businesses and colleges in developing commercial applications for their research. All research buildings will be owned by the USTAR Governing Authority.
Utah State University President Stan Albrecht said the USTAR initiative is essential to put Utah in a competitive position in a global economy.
"This bill has enormous potential," Albrecht said.
The bill calls for splitting the revenue created by new patents at the research campuses between the scientists, the universities and the USTAR Governing Authority.
University of Utah President Michael Young said he expects $4.9 billion in research and grant money to flow into the universities as a result of the new technology centers.
Young said the good that medical discoveries and treatments that will be created will be "simply incalculable."
This story appeared in The Daily Herald on page D1.