The Kentucky Senate budget committee has symbolically thrown its weight behind the proposed life sciences wet lab.
Last week, the Kentucky Senate approved their two-year budget for 2022-2023. Their budget plan included $15 million for the proposed life sciences wet lab in Covington.
Initially, Gov. Andy Beshear allocated $10 million for the lab in his budget in January. This means there was a $5 million raise in proposed funding. This stands in contrast to the Kentucky House, which did not have any funding for the lab included within their budget.
Northern Kentucky state Sen. Chris McDaniel is head of the budget committee which advocated for the budget. Covington Mayor Joe Meyer and Economic Development Director Tom West have been publicly supportive of the project.
“Unless you’re in life sciences, you might not appreciate the magnitude of these companies’ work and the breadth of their reputation,” West said in January. “So, when they say this shared lab is the single-biggest missing element that can help Northern Kentucky build on its momentum in life sciences and biotech and help it attract and grow new companies, we all should not only listen but also take action.”
Gov. Andy Beshear has also publicly shown his support for development of the proposed lab in Covington. Beshear has previously said the investment will bolster biotechnology companies in the region and will allow room for new startup companies to grow and innovate.
The budget passed the Senate on a 30-6 vote, showcasing the Senate’s support for the proposed lab. House Bill 1 will now move onto the House for consideration. In total, the budget is 223-pages in length. The proposed lab funding is found on page 34 of 223.
House Bill 1 outlines how the money from the budget will be properly distributed to support the construction and fit-out of the wet lab. If the House chooses to accept the bill, the two chambers will appoint members to a conference committee. The committee will debate and delineate the discrepancies between the two bills in order to find a solution both chambers can agree on.
If the budget is mutually agreed upon, the bill will move on to Beshear. The governor can’t make any new additions but does carry the power to veto. Both legislative chambers are controlled by the Republicans. The Republican majority holds the power to override a potential veto from Beshear.
The lab will greatly benefit healthcare startups and industry innovation within the region. Four nationally respected Northern Kentucky biotechnology companies, Bexion Pharmaceuticals, Gravity Diagnostics, CTI Clinical Trial & Consulting Services, and BioWish Technologies, have publicly backed the proposed lab.
“There are smart people in this region, strong research institutions, emerging businesses with good ideas, and sources of funding – what’s missing is the lab space needed to generate data and grow those businesses,” said Margaret van Gilse, Bexion’s vice president of business development.
These companies believe the proposed life sciences lab will help foster innovation and entrepreneurship within the biotechnology sector of Northern Kentucky. Bexion specifically is working on a potentially game-changing cancer drug, and the lab would allow such testing and research from the company to flourish.
