New Life Sciences Center Takes $10M Hit
Life sciences companies hoping to receive grants or loans from the newly formed Massachusetts Life Sciences Center can reduce their expectations a little.
As part of its budget-cutting efforts, the state has reduced this year's chunk of the center's $1 billion in promised funding by $10 million, according to Angus G. McQuilken, the center's vice president for communications. The cut comes out of an annual allocation of up to $25 million that funds loans, grants and investments in industry and research, as well as the center's operational budget.
The funding cut was first reported by Mass High Tech. View their story here.
McQuilken said the center's operational budget is capped at $3.75 million, but is only $2.75 million for this fiscal year. That will not change after the cut, he said.
Two other pieces of the center's funding, a $500 million total allocation for investments in infrastructure, and a $250 million piece for tax incentives capped at $25 million per year, will not be affected by the cut, McQuilken said.
The $1 billion that the state promised for the center is intended to be spent over 10 years.
McQuilken said the center is still optimistic about the state's commitment to its work, and that many state-funded initiatives have had to take a hit in the face of state budget shortfalls this year.
The center has already given out its first piece of infrastructure funding, a $5.2 million grant to improve Framingham's water and sewer infrastructure, allowing Genzyme Corp. to expand its operations there and encouraging other life science companies to open in town.
As of Friday afternoon, McQuilken said the cut was still on the governor's desk, but he said a signature could come any time.
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