The Impasse Over Ben Franklin Technology Partners
The negotiations over the Ben Franklin Technology Development Authority's (the umbrella organization for Ben Franklin Technology Partners) budget remain pretty much stalled along with the overall budget impasse, it appears. Governor Rendell has reduced his request from $40 million to $35 million, coming a little closer to the $20 million proposed by the Republicans in the State Legislature. The previous budget allotment for the program was $50.7 million. I asked Terry Singer, Director of Statewide Affairs for BFTP in Harrisburg, to share some historical trends in the program's budget and the breakdown of expenditures.
The amount allocated to the regional BFTPs has been absolutely flat for at least the past six years at $27,611,000. The remaining $23 million or so goes to the state level, and the total pie was divided as follows for FY 2008-2009 (July 1, 2008 – June 30, 2009), though this chart actually represents $60 million since it includes a $10 million carry over from the previous year:
(Source: Ben Franklin Technology Development Authority)
While I am personally not a big fan of government intrusions into private equity markets, I don't think BFTP is a massive program. It is also professionally managed, considered as a model by other states, and seems protected from most kinds of political interference in its investment decision making processes, as far as I can tell. I know many Philly entrepreneurs have have benefited from and succeeded through the program. And I haven't seen a word recently from anyone in the Legislature being critical of it.
On the other hand I agree with Joe DiStefano's assessment of the impact analysis produced by BFTP as being overblown. And it is only one of a number of programs that Republicans in the State Legislature are targeting to avoid Rendell's proposed 16% income tax hike which is something that would not be good for the State's economy at this time.
Hopefully, they will find a good compromise.
