HARRISBURG – Gov. Edward G. Rendell said as more of Pennsylvania’s leading university and private bioscience research facilities sign on to his proposal to create a $500 million Jonas Salk Legacy Fund, that it’s time for the General Assembly to approve the plan and pave the way for the groundbreaking medical and scientific advances that will be discovered here.
To date, four of the commonwealth’s five academic medical research centers – Pennsylvania State University, the University of Pennsylvania, Thomas Jefferson and the University of Pittsburgh Medical Center – have endorsed the Governor’s proposal. In addition, other significant research centers, such as Allegheny-Singer Research Institute, Carnegie Mellon University, and the Children’s Hospital of Philadelphia, have expressed support for the Governor’s plan.
“The Jonas Salk Legacy Fund is the answer to building a truly great network of biomedical research and commercialization facilities,” said Rendell. “We already have some of the world’s finest hospitals, universities and advanced technology centers, but with this investment we can ensure that we remain on the cutting edge of scientific and medical research. If we are to lead the way in developing the cures and medical devices of tomorrow, we must provide these institutions with the resources they need to reach the next level.
“Other countries in Europe and Southeast Asia, not to mention other states, are making similar investments, and they are attracting attention. With this investment, Pennsylvania can continue to attract top scientific talent, lured by the substantial investment made in state-of-the-art facilities that offer the tools to conduct their advanced research. Having this cutting edge research done in Pennsylvania not only advances medical science, but creates new economic opportunities in the commonwealth.”
The Jonas Salk Legacy Fund will provide $500 million in accelerated funding to spur medical innovation and life-saving treatments—at no expense to taxpayers. The fund will help draw world-class researchers to Pennsylvania by fueling the expansion of bioscience laboratories, incubators and research parks, and help colleges, universities and academic medical centers nurture entrepreneurship in the life sciences.
Two major types of investments for these institutions will be available through the Legacy Fund:
-Starter Kits will provide grants to renovate, furnish and equip research facilities, including the acquisition of equipment and advanced instrumentation to assist in attracting highly rated research faculty to the state; and
-Bricks and Mortar Grant Financing to cover projects that will expand, remodel, renovate, alter or construct biomedical research facilities, including in-demand amenities such as wet, dry and special-function laboratories.
The Governor had proposed creating the Salk fund in his budget last year. The version he unveiled today went beyond the earlier proposal by proposing to use additional Tobacco Settlement Funds to help ensure that the work performed at Pennsylvania’s research centers gets translated into the medical products of tomorrow. The plan to wrap the state PACE program around the federal Medicare Part D drug benefit has been so successful that some of the tobacco funds which had been used to supplement Lottery’s support for PACE are no longer needed.
The revamped Salk proposal would take $13 million annually in tobacco funds to help bring research into the marketplace. Half of these funds would support the commercialization of products funded by the three state Life Science Greenhouses and the other half would be invested in venture capital funds to support emerging Pennsylvania bio-tech businesses.
“This continuing investment in making sure that the research done in Pennsylvania’s laboratories today benefits the consumers of tomorrow is a significant enhancement of the Salk proposal,” Rendell said. “This initiative is the most comprehensive strategy in the nation to fuel scientific research and stimulate the development of new medical products.”
The Governor said his proposed budget also builds on Pennsylvania’s economic progress of the last four years and positions the state for future growth in the new economy.
“Pennsylvania has seen a tremendous economic turnaround in the last four years because we were willing to make the investments necessary to grow our economy,” said Governor Rendell. “We’ve added 162,000 jobs and Pennsylvania now has more jobs than it ever has had. We’ve also revitalized towns and cities across the state and trained our workers to meet the competitive demands of a global economy.
“We could be content with these accomplishments; satisfied with our growth thus far; or we could do more. The economy is changing and it’s presenting new opportunities and new challenges at every turn. To me, the choice is clear: we must act now with new investments that will build on Pennsylvania’s progress and position the commonwealth for a leading role in the new economy.”
As part of his 2007-08 budget, Governor Rendell proposed two initiatives to strengthen Pennsylvania’s competitive position in high-growth industries—alternative energy and the biosciences.
“Pennsylvania is internationally recognized as a leader in areas that are defining the new economy, like life sciences and renewable energy,” Rendell said. “In the coming years, these two areas are poised for tremendous growth and I believe we must take steps now to capitalize on this potential. That’s why I’ve proposed the Energy Independence Strategy and the Jonas Salk Legacy Fund so Pennsylvania can establish the infrastructure and attract the talent that will help lead the way in these exciting fields.”
Last week, Rendell unveiled his $850 million Energy Independence Strategy, which will cut energy costs for consumers, expand the production of homegrown energy solutions, and reduce the commonwealth’s reliance on foreign fuels. The plan — among the most aggressive and comprehensive in the nation — is expected to save consumers $10 billion over the next 10 years.
The Energy Independence Strategy calls for steps to help lower energy consumption for consumers by installing smart meters that will regulate electricity usage during peak rate periods, and providing rebates to households that replace old air conditioners and refrigerators with more energy-efficient models. The plan also helps businesses by enabling large energy consumers to secure stable rates through long-term contracts, thus avoiding price spikes that drain resources.
Pennsylvania’s energy producers will also get a boost under the Governor’s strategy. More than $100 million will be made available—on a dollar-for-dollar matching basis—in the form of venture capital, loans and grants so Pennsylvania can attract private-sector investors to grow existing companies and draw other cutting-edge energy firms to the commonwealth. An additional $500 million will be directed to infrastructure improvements, construction projects and equipment purchases that will support energy-related economic development projects like solar manufacturing, advanced coal technologies, biofuels, and energy demand management efforts.
In supporting expanded domestic production, Rendell renewed his call for developing more homegrown energy solutions.
“Each year, we purchase $30 billion worth of on gasoline and liquid fuels from sources outside of Pennsylvania,” the Governor said. “Imagine what we could do if we put that money to work here and purchase fuel alternatives produced within the state. We would not only make substantial progress toward our goal of an energy-independent Pennsylvania, we would put thousands of people to work in a rapidly growing industry.
“We can realize that potential through the ‘PennSecurity Fuels Initiative.’ By replacing one billion gallons of imported gasoline with clean and renewable homegrown fuels, we can create new opportunities for the ethanol and biodiesel companies that have setup shop here, the many more that are in the works, and for our farmers who grow the agricultural commodities fueling this renewable-energy revolution.”
The Governor said investments in these two areas—renewable energy and the biosciences—are essential if Pennsylvania is to compete in the new economy. He added, however, that the state will not abandon the tenets of economic development that have helped the commonwealth realize the revitalization and turnaround of the last four years.
Included in the Governor’s new budget proposal were increases to vital programs that benefit community development projects, fund infrastructure expansion and upgrades, and provide the capital financing needed to create new business opportunities.
The Governor highlighted five programs where targeted increases in annual appropriations will complement and expand on the work of his economic stimulus package. Those programs include:
-Infrastructure Facilities Improvement Program ($7.5 million) Every $10 million of funding for this program creates approximately 20,000 new jobs, but the number of eligible projects currently exceeds the state’s resources. Without new funds, the program, which provides multi-year grants for debt service on infrastructure and facilities improvements, will be unable to assist any new projects;
-Housing and Redevelopment Assistance ($5 million) Bolstered by Governor Rendell’s economic stimulus package, this program helps fund bricks-and-mortar projects in Pennsylvania’s core communities, making it an important tool in the state’s ongoing revitalization efforts;
-Municipal Rightsizing Fund ($1.9 million increase to Land Use Planning and Technical Assistance appropriation and $2 million new Community Action Team appropriation) These new resources will provide planning funds for core communities pursuing downtown revitalization projects, with special funding for communities considering mergers or consolidation;
-Keystone Innovation Zones ($2 million) The KIZ program provides technical support to early-stage companies located in specific growth areas. To date, the commonwealth has created 21 Keystone Innovation Zones, with another four to six zones possible with additional funding;
-Film Production Grant Program ($10 million increase) Film production is a growth industry in Pennsylvania, with a nearly 160-percent increase in economic activity in just three years. With more production companies considering the commonwealth, additional funding is necessary to meet demands. Each dollar invested by the state in this program generates $7.50 of economic impact for Pennsylvania.
More than $2 billion has been invested to date from the 19 programs included in the Governor’s $2.8 billion economic stimulus package total. This critical investment has helped companies retain more than 300,000 jobs and has benefited nearly 3,000 development projects that are designed to nearly 200,000 new jobs.
“While we identify the new and emerging areas that will drive our economy in the future, we cannot ignore the importance of continued investment in our businesses and communities,” Rendell cautioned. “We have accomplished so much in the last four years by putting our resources to work where needed, such as projects that benefit our people, our communities, and our employers.
“We’ve revitalized large cities and small towns across Pennsylvania, bringing people and businesses back to our core communities. Additionally, we’ve provided the capital our businesses need to grow and compete, ultimately putting more hard working men and women to work. Now we must act to continue that momentum, not pull back and ignore the needs that remain.”