Bioscience builds on own growth

Tax revenues exceed expectations, reinvested in thriving industry

? State revenue is getting tighter amid forecasts of economic uncertainty, but the bioscience sector continues to grow.

“It’s working better than anticipated,” said state Rep. Kenny Wilk, R-Lansing, who was the main author of the state law aimed at developing the bioscience industry in Kansas.

The law takes the increase in state withholding taxes of workers in the bioscience sector and funnels that to the Kansas Bioscience Authority, which in turn allocates grants and other economic incentives back into bioscience.

In fiscal year 2006, which is from July 1, 2005, through June 30, 2006, the total generated by the law was $20 million. That grew to $24.5 million in fiscal year 2007.

In the current fiscal year and next one, state budget experts had initially estimated about $25 million for each year. But that estimate was recently upped to $39.4 million in the current fiscal year and $47 million for the next.

“Between the two years, that is a big change,” said Gov. Kathleen Sebelius’ budget director, Duane Goossen.

And with that increase has come some interest from the Legislature in directing how those funds should be used.

Wilk said he’s fine with that. “It’s always the prerogative of the Legislature to do that,” he said.

During recent budget talks, lawmakers have discussed a proposal that could result in much-needed bioscience authority funding for the Kansas University School of Medicine’s Wichita campus.

The Wichita Center for Graduate Medical Education could lose its accreditation if it doesn’t add full-time faculty and staff to increase research.

So far, lawmakers have been unable to find the state general funds to bolster the program but said perhaps the center could apply for funds from the Bioscience Authority.

Wilk said that would fit with the purpose of the law of developing human science research to benefit the economy.