The Institute for Physical Research and Technology, one of ISU’s economic development programs, will likely see big cuts if the Republican-backed budget is passed.

The institute has existed for more than a decade, providing technical assistance to Iowa companies and encouraging economic development, said Steve Karsjen, public affairs manager.

If passed, the GOP-proposed cuts will include a $2.35 million cut in funding for the institute, roughly 60 percent of the organization’s current budget.

“These cuts are draconian and significantly impact our ability to provide technical assistance to companies,” said Joe Gilbert, associate director. “[The cuts] send the message that the legislature doesn’t care about economic development. They’ve taken a slash-and-burn approach.”

Gilbert said he thinks the proposed cuts represent a very short-sighted approach by the legislature.

“It doesn’t make sense to cut economic development programs when the state is in an economic downturn and the future of the state is looking toward economic growth,” Gilbert said.

Senate Majority Leader Stewart Iverson said it’s a matter of prioritizing.

“It comes back to economic development is very important to all of us,” Iverson said. “Do we go and take more money from somewhere else – education or human services or public safety or other things to balance the budget? That’s the tough decision we have to make.”

Karsjen said there are three main ways the cuts would affect the Institute for Physical Research and Technology.

“The cuts would force the closing of as many as four research centers,” Karsjen said. “It would also mean a reduction in the amount of technical assistance given to companies and a reduction of programs for new business startups.

“It’s very, very easy to criticize and say, `well we shouldn’t take money from that program,’ ” Iverson said. “The problem is, somebody has to stand up and make that decision.”

John McCarroll, director of university relations, said the university was in the process last Friday of compiling information to address questions about how much assistance and how many jobs the economic development programs have provided outside of the university.

“[The Institute for Physical Research and Technology] and the Small Business Development Center have an impact in virtually every corner of the state,” McCarroll said.

“In the past roughly two years [the Institute for Physical Research and Technology] has provided assistance to 27 manufacturing companies in the northwest corner of the state alone.”

Over two years, the institute had contact with more than 190 companies, McCarroll said.

“[The institute’s] efforts are not just in Ames or Central Iowa. Our efforts are across the state. We have technical assistance efforts in almost every county,” Karsjen said.