Funds sought for university projects
The Appropriations Committee heard testimony March 3 on a variety of proposals that would provide funding to the University of Nebraska for a range of projects.
LB154, introduced by Kearney Sen. Galen Hadley, would appropriate $10 million in general funds in fiscal year 2015-16 and $20 million in FY2016-17 to the Board of Regents of the University of Nebraska for economic competitiveness initiatives.
The board would distribute the funds to advance strategic, multi-campus initiatives intended to advance Nebraska’s economic competitiveness, including but not limited to:
• Peter Kiewit Institute;
• Nebraska Innovation Campus;
• Building a Healthier Nebraska Kearney Health Science Programs;
• Rural Futures Institute;
• National Strategic Research Institute;
• Science, Technology, Engineering and Mathematics (STEM) initiatives;
• Nebraska Advanced Biomedical Technology Innovation and Discovery Institute;
• Nebraska Business Development initiatives; and
• Veteran workforce development initiatives.
Hadley said the bill represents an investment that would result in new companies, jobs and profits that would provide the state tax revenues for future growth. Traditionally, he said, Nebraska has used tools such as infrastructure development and tax incentives to encourage economic growth.
“In a lot of states, the model has shifted from tax incentives … to economic development through the technology that universities have,” Hadley said.
Interim University of Nebraska President Jim Linder testified in support of the bill, saying the funding would impact every part of the state. He cited a study done by the University of Nebraska at Omaha, which projected that 1,100 jobs and $58 million in labor income would be produced by the bill.
“[The] analysis points to a five to one return on our $20 million investment,” Linder said.
The committee also heard joint testimony on LB532 and LB533.
Introduced by Omaha Sen. Robert Hilkemann, LB532 would appropriate $25 million in general funds and $5 million from the Cash Reserve Fund in FY2015-16 to the university to design and build the Global Center for Advanced Interprofessional Learning at the University of Nebraska Medical Center (UNMC).
The bill also would authorize a $20 million transfer from the cash reserve in FY2016-17, conditioned on evidence provided by the Board of Regents that $20 million in private or other funds have been received for the project.
LB533, introduced by Gering Sen. John Stinner, would appropriate $1.5 million in general funds in FY2015-16 and $3 million in FY2016-17 for start-up operations for the center. The bill also would state legislative intent to provide $5 million in general funds in FY2017-18 and FY2018-19 for ongoing operations.
Hilkemann said the center—a $105 million project at UNMC—will include a virtual learning center where medical students can safely practice procedures. The center will employ a “hub and spoke” model, he said, which will engage health profession students in rural parts of the state as well.
“This is really going to transform the way we do medical education,” Hilkemann said.
Stinner said adequately funding the operation of the center is key to the future of health care provision in Nebraska.
“The training provided will not only improve health care provider performance,” he said, “but also lower costs and, most importantly, improve the outcome for patients.”
UNMC Chancellor Jeffrey Gold testified in support of both bills, saying they would help ease the state’s health care provider shortage. He said the bills would allow UNMC to leverage federal dollars and private investment for the center.
“This is a truly transformational investment in the future of health care education and commercialization,” Gold said.
LB560, introduced by Gothenburg Sen. Matt Williams, would appropriate $25 million in general funds in FY2015-16 to the university for building projects at the Nebraska Innovation Campus. The bill would transfer $25 million from the Cash Reserve Fund to the General Fund to finance the project.
The bill also would create the Nebraska Innovation Campus Building Acceleration Fund as a repository for proceeds from the sale of projects funded as a result of the appropriations made in the bill and any private funds received. The fund could be expended for new building projects at Innovation Campus on the same basis as the initial funding.
Williams said innovation campus is a “startup company” that needs state dollars to leverage private funds in order to benefit all of Nebraska through research and development.
“Our role as legislators should be to use the limited assets at our disposal in a manner to help grow our state by linking great students with great faculty, with great private companies,” he said.
UNL Chancellor Harvey Perlman testified in favor of LB560, saying it is difficult to attract private sector partners to innovation campus without the proper facilities.
“We began this project on a clean slate,” Perlman said. “The former state fair grounds lacked any usable infrastructure or buildings.”
No opposition testimony was offered on any of the bills.
The committee also heard testimony on the following proposals:
LB110, introduced by O’Neill Sen. Tyson Larson, which would appropriate $500,000 in general funds in FY2015-16 and FY2016-17 to the university for pediatric cancer research and clinical care at UNMC;
LB417, introduced by Omaha Sen. Jeremy Nordquist, which would appropriate $1.8 million in general funds in FY2015-16 and $1.8 million in FY2016-17 to the university for pediatric cancer research at the UNMC;
LB593, also introduced by Nordquist, which would appropriate $250,000 in general funds in FY2015-16 to the university to fund a study of current health data systems;
LB108, introduced by Bellevue Sen. Sue Crawford, which would appropriate $250,000 in FY2015-16 and FY2016-17 to establish 12 one-year behavioral health, master’s level internships in rural and underserved areas of Nebraska;
LB436, introduced by Omaha Sen. Tanya Cook, which would appropriate additional general funds to the university to establish a pilot program to expand pediatric dental residencies from eight to 10; and
LB496, introduced by Heartwell Sen. John Kuehn, which would appropriates $1.25 million in general funds in FY2015-16, FY2016-17 and FY2017-18 to the Board of Regents for the Yeutter Institute for International Trade and Finance.
The committee took no immediate action on the proposals.
