Oklahoma Governor Henry Seeks Research Funds For Long-Term Economic Recovery

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January 26, 2009 -- (Oklahoma City) Oklahoma Governor Brad Henry today announced a plan to boost funding for one of the state’s top job creation tools, the EDGE research endowment, by earmarking various state interest and investment earnings for the fund.

The EDGE endowment generates money to help fund cutting-edge research projects across the state of Oklahoma.

“Obviously, our first order of business this year is to address the state’s short-term budget challenges and we will do that, but we cannot afford to neglect our long-term job creation needs in the process,” said Gov. Henry. “A well-funded EDGE endowment and the high-paying research jobs it creates are critical to Oklahoma’s future economic growth, so it is important to make a commitment now.”

The governor will ask the Legislature to earmark the future interest earnings from the Rainy Day Fund for EDGE projects. Currently, those dollars flow directly into the general revenue fund. Because fund interest earnings fluctuate from year to year depending on interest rates and the size of the account itself, the governor believes the funds are better suited for one-time EDGE projects rather than recurring general revenue expenses.

To build up the EDGE endowment itself, Gov. Henry also wants lawmakers to commit to depositing 35 percent of annual state investment earnings into the research fund. The endowment currently contains $150 million, far short of the $1 billion goal.

“If we don’t fill the endowment to its capacity, it will cost us jobs and economic opportunities for generations to come. To land the best jobs of the future and keep our young people at home, we have to expand research capabilities, and the EDGE fund is the best tool to accomplish that goal,” said the governor.

Under the governor’s proposal, designated funds would not begin flowing to the endowment or research projects until the current state budget crunch is over and projections indicate revenue trends are returning to normal.

The EDGE endowment was the brainchild of the Economic Development Generating Excellence (EDGE) task force appointed by Gov. Henry in 2003. The panel of public and private sector leaders recommended the establishment of a $1 billion endowment to help boost research projects in Oklahoma.

“We have a great chance to make Oklahoma the research capital of the Plains, but we will never attain that goal without a permanent funding source for EDGE,” said the governor.

Gov. Henry will formally submit his EDGE proposal to the Legislature when it convenes its annual session on Monday, Feb. 2.

Source: Oklahoma Governor