Senate Republican wants to keep KTEC alive

? Democratic Gov. Kathleen Sebelius’ plan to fold a state agency that nurtures high-tech businesses into the Department of Commerce hasn’t gotten much traction with the Republican-controlled Legislature.

Sebelius has tried to push legislators into considering her proposal seriously by vetoing all funding for the Kansas Technology Enterprise Corp. She argues that her reorganization plan would save the state money and make economic development programs more efficient.

But GOP leaders said Tuesday that they’ll try to preserve the agency and worry Sebelius’ plan would hurt efforts to revive Kansas’ economy.

Republicans said they aren’t sure how they will respond to Sebelius’ action Monday on a $13 billion budget for the fiscal year beginning July 1. She signed the budget but vetoed a section authorizing $12.1 million in spending for the Kansas Technology Enterprise Corp., most of it financed by Lottery profits.

“It’s the kind of organization that we need to help us come out of this economic slump,” said Senate President Steve Morris, a Hugoton Republican. “I think it’s been effective as a stand-alone agency.”

Sebelius questions the agency’s effectiveness in nurturing new businesses, and her staff estimates that the state could save $3.2 million if the Commerce Department absorbs its programs.

She has proposed folding both the technology agency and Kansas Inc., the state’s economic development research agency, into the Commerce Department. However, she did not touch the $515,000 budget legislators approved for Kansas Inc.

A bill to fold both agencies into the department is before the Senate Ways and Means Committee, as is one moving only the technology agency’s programs into the department. The committee hasn’t voted on either.

If Sebelius’ veto stood, the technology corporation would suspend operations for at least a year, starting July 1. Legislators could attempt to override her veto or try to draft a new budget for the agency with conditions attached.

Legislators are taking their annual spring break and reconvene April 29 to wrap up the year’s business.

“The governor took this action so the Legislature can have time to adequately evaluate KTEC’s performance,” said Sebelius spokeswoman Beth Martino.

The state created the agency in 1987, expecting it to develop high-technology companies and high-paying jobs by forming partnerships with universities and private groups. The agency is governed by a 20-member board that includes the Kansas secretaries of commerce and agriculture, 10 other appointees of the governor and eight appointees of legislative leaders.

The agency works with partners in “incubators” to help entrepreneurs. It also provides seed capital directly and has about $9.1 million in investments in 48 companies.

It survived similar efforts to fold it into the Commerce Department in 2000 and 2001.