CHEYENNE -- Apparently swayed by a new study, the State Loan and Investment Board voted against a $3 million grant for a Cheyenne day care center on Thursday.

The tally was 4-1 with State Superintendent of Public Instruction Jim McBride casting the only vote for the center.

The Wyoming Business Council last month recommended against the Business Ready Community grant for the project.

"The board has supported child care and early childhood education for funding in the past," Gov. Dave Freudenthal, board chairman, said after Thursday morning's vote.

The original application for the Cheyenne project cited a 2006 survey showing high demand for the center.

A revised study, "reflecting the economy," suggested the demand does not exist, the governor said.

In the absence of demand, the Wyoming Business Council grant is not appropriate for the facility, he added.

"I think there are a lot of us who support the idea," the governor added.

State Auditor Rita Meyer said the decision was difficult because the board supports child care.

"My take is that if there is demand out there I need to see the private sector stepping up," Meyer said.

Also, the board does not want to be in a position of putting out of business "cottage industry" child care centers in Cheyenne operated out of someone's home, she added.

Meyer also said she had not been contacted by any legislator from Laramie County to support the grant.

"That to me is a key because they appropriated the money" for the grant program, she said, referring to the Legislature.

The other two board members who voted against money for the center were Secretary of State Max Maxfield and Treasurer Joe Meyer.

The board approved another Business Ready Community grant for $3 million to Goshen County to expand Schlagel Manufacturing, Inc. and develop a business park in Torrington.

The board also approved a $57,500 emergency grant to the town of Basin to fix a ruptured water line.

Contact capital bureau reporter Joan Barron at 307-632-1244 or joan.barron@trib.com