State role in startup investing takes hit in budget plan

A state fund responsible for helping to jump-start small businesses throughout Missouri faces a nearly 80 percent funding cut under Gov. Eric Greitens’ proposed spending plan.

The Missouri Technology Corporation, a public-private partnership that provides seed money for tech startups, would see its budget shrink to $5 million in the fiscal year beginning July 1 from the current $22.9 million.

The proposed reduction comes as Greitens, a Republican, has repeatedly said he wants to create jobs as part of his agenda.

On Friday, the governor’s office did not respond to requests for comment on the proposed cut. A spokeswoman for the Department of Economic Development, which helps administer the program, did not return messages.

Donn Rubin, president of industry group BioSTL and an MTC board member, said a decrease in funds wouldn’t shut down the program but could make it tougher to keep up with other states at a time when there is stiff competition for startups.

Read more: St. Louis Post-Dispatch


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