(The Center Square) – NCInnovation, funding partner for research and development toward commercialization opportunities of North Carolina’s public university system, is being asked to return $500 million provided by taxpayers.
The request is in the form of a bill in the state House of Representatives. NCInnovation was provided $250 million in each of the past two years as part of the 2023 Appropriations Act.
Questioned among other places from within its Board of Directors previously, Reclaim State Assets from NCInnovation – or House Bill 154 – is shepherded by the lower chamber’s cochairmen of the Oversight Committee. Reps. Harry Warren, R-Rowan, and Jake Johnson, R-Polk, are joined as primary sponsors by Reps. Julia Howard, R-Davie, and John Blust, R-Guilford.
NCInnovation, a private nonprofit, seeks to bridge the fiscal gap between state and federal and funding from private sector support in the research phase. Its website says, “We provide the necessary investment and support to transform research breakthroughs into thriving businesses that improve economic opportunities in all regions of North Carolina.”
In the $60.7 billion 2023 Appropriations Act, lawmakers created five requirements to enable NCInnovation to receive funding. Those were four regional innovation hubs; studies to maximize research efforts and corresponding commercialization; detailed spending plans and performance management programs for awarding funds; $25 million in private commitments without four years of receipt of the endowment; and semiannually – at a minimum – reporting progress on the requirements to the Joint Legislative Commission on Governmental Operations.
Transparency, accounting questions and conflicts of interest have been a collective albatross.
According to the nonprofit’s website, grants have been awarded for projects at N.C. A&T, Appalachian State, East Carolina, UNC Greensboro, UNC Wilmington, Western Carolina and two at UNC Charlotte.
The bill filed Tuesday seeks to dissolve the relationship of the state and NCInnovation. The language says a return of state funds and assets is merited. If passed, the proposal would become law immediately.
Other sponsors on the bill are Republican Reps. Jennifer Balkcom of Henderson County, Hugh Blackwell of Burke County, Keith Kidwell of Beaufort County, Donnie Loftis of Gaston County, Jeffrey McNeely of Iredell County, Paul Scott of Rutherford County and Bill Ward of Gates County.
