As one of the three boards regulating the 21st Century Jobs Fund is screening the 505 applications for funding, lawmakers on an oversight panel Thursday cautioned officials on the role universities will play.Of the applications, 67 of those are for basic research funding, which cannot be more than 10 percent of the $100 million money pie, and were mostly made up of university-led applicants, while about 60 percent of the 228 applications for applied research had universities listed as their prime sponsor.

The applicants have requested more than $1 billion in funding, of which 38 percent is in the field of life sciences, 33 percent for advanced automotive manufacturing, 19 percent for homeland security and defense and 10 percent for alternative energy.

While the proposals span 33 of the state's 83 counties, 198 are from Wayne, Ingham and Washtenaw counties where the state's three largest universities - Wayne State, Michigan State and the University of Michigan - are housed, said Co-Chair Sen. Valde Garcia (R-Howell).

Mr. Garcia said he was fine with the university involvement (six of the 19 members of the board are university presidents) but wanted to ensure that "ultimately, we'd like to see these things commercialized."

Most of the basic research funding would be in grants and not loans the universities involved in basic research, said Jeff Mason with the Michigan Economic Development Corporation, but the criteria for funding is weighted on the ability of a project to be commercialized.

Rep. Andy Dillon (D-Redford) said he supported the MEDC proposal for a $500 fee to go along with the application, as there are costs incurred for reviewing the proposals, but that was ultimately turned down by the SEIC board.

"They should put their money behind it too," he said.

In fact, David Canter, who serves as chair of the board, said members are looking at amplifying the jobs fund so that the state is but one partner in the funding circle the diversify the state's economy.

"Is this about funding job creation or funding the technology that will lead to job creation?" he said, adding that members have decided to start with whether a project is good science before the people and the business plan behind it are reviewed.

The areas of the United States where municipalities have invested in diversification have taken 20-25 years to boom, Mr. Canter said. Like venture capitalists, the state cannot walk away from its projects and will have to nurture the projects with more money in the future and additional expertise.

"Five hundred and five applications tells you that you have a good idea and there's a lot of fertile ground out there," he said.

The state's initial $100 million investment does not even come close to what it costs to perhaps create a new pharmaceutical drug, Mr. Canter said, adding that more private investment in this project will be necessary.

Mr. Dillon suggested that as the projects are being reviewed, that an informal advisory panel of four to five people already in that industry and with no ties to the projects serve as advisors to the board.

COMPLIANCE OFFICER: Co-Chair Rep. Bill Huizenga (R-Zeeland) also asked about the status of some requests for proposals for a fund manager and chief compliance officer. Mr. Mason said the fund manager will be selected by the Michigan Strategic Fund Board in May and that Civil Service has posted the compliance officer position, but he did not know what the status of those interviews were.