Supercomputer proposal: Money requests not as much

By Justin Post - 11/19/2008

The amount requested from Butte-Silver Bow to support a supercomputing operation in the Mining City has been slashed.

Rocky Mountain Supercomputing Centers — a private, non-profit organization — originally asked the council of commissioners to contribute $700,000 toward the project.

That amount has been decreased to $380,000, said Jim Smitham, director of the Butte-Local Development Corp.

The amount requested of council fell after RMSC officials "fine tuned" its budget and the Montana Department of Commerce increased its funding for the project by $100,000, he said.

The BLDC also is reviewing a $200,000 loan to help defray costs for a director of the supercomputing operation and other expenses, Smitham said. (See story on Page A1.) RMSC is scheduled to make its pitch to council next week and is expected to have local business representatives and other proponents on hand to voice their support.

Commissioners, meanwhile, are reviewing the request and whether they would consider granting or loaning the money, Smitham said.

"I think the $380,000 is a realistic, good number to put before the council and hopefully it is much more palatable for them," he said.

Smitham said the amount is less than 10 percent of the roughly $4 million project, and that its benefits will outweigh the costs.

The computer will be operated and maintained through user fees and possibly grants. Gov. Brian Schweitzer also has proposed $2 million in funding for the supercomputing effort over the next two years, Smitham said.

But the first batch of the money won't be available until July 1, contingent on approval from the Legislature.

The amount requested of Butte-Silver Bow will "bridge" operating costs for the supercomputing center until then, said Evan Barrett, Montana's chief business development officer.

"This is a wise investment for the state; it is a wise investment for the community," he said. "We think the merits of this case are rather phenomenal and very positive." Commissioners and city-county government staff said they continue to review the request and have more questions about the proposal, said Chief Executive Paul Babb.

"There are still some questions that need to be answered," he said.

Among those questions is how RMSC would specifically spend Butte-Silver Bow's portion if approved by council, Babb said.

The chief executive and his staff are reviewing funding options, and Babb said the city-county's capital improvement fund is the only likely option.

Babb said he wouldn't recommend tapping into reserves and doesn't believe metals mines taxes are an option, especially since that cash is tied up in a legal dispute with the school district.

Council will hear a presentation from RMSC during its weekly meeting at 7:30 p.m. next Tuesday on the third floor of the courthouse, 155 W. Granite. The meeting is Tuesday rather than Wednesday, because of the Thanksgiving holiday.

Commissioners may vote on the funding request during the meeting.

Reporter Justin Post may be reached at justin.post@lee.net or by telephone, 496-5572.