Lawmakers 'squeamish' over bonding for buildings

The leader of the Utah House of Representatives said Wednesday that while a big-budget science and technology initiative has broad support, some lawmakers are "squeamish" about bonding for new buildings that are a key component.

Speaking at a Utah Information Technology Association breakfast, House Speaker Greg Curtis, R-Sandy, said bonding is an issue when the state has unprecedented revenues — $640 million in ongoing revenue is projected.

The Utah Science, Technology and Research initiative, also known as USTAR, is the subject of a bill calling for $50 million in one-time funds to a newly created governing body for USTAR, as well as almost $20 million in ongoing funds and authorization of a $111.1 million bond for new buildings at the University of Utah and Utah State University. Funds also would be used at five innovation centers elsewhere in the state, including on private university and college campuses.

The concept features the recruitment of research teams to Utah that would develop technologies that would spin off into newly formed companies.

Gov. Jon Huntsman Jr. supports USTAR, and the initiative is UITA's top priority during the 2006 session.

"There is some fiscal impact associated with that, obviously," Curtis said. "One of the sticking points in that right now, at least in the discussions I'm in with people, is that it has some bonding authorization for up to $100 million. . . . A lot of my colleagues are very squeamish about authorizing bonds at a time when you have unprecedented revenues . . . Those are some of the issues that we're working through, but I think there's broad support of the concept."

The USTAR bill, SB75, is through the Senate and now ready for House consideration.

"I don't know what the revenue stream is to pay back the $100 million bond, and if the revenue stream is simply based on the success of USTAR — well, we're going to get more grants and get more businesses," Curtis said. "Is it going to come fast enough in doing that, or should we just look at it and say if we're going to do it . . . just fund it and do it?

"I don't think there's an opposition in the sense of 'No, we're not doing USTAR, we don't want to do USTAR.' It's more a function of the structure and trying to bring that."

Senate President John Valentine, R-Orem, said the Senate dealt with those same concerns.