Purdue prepares funding request for state

WEST LAFAYETTE, Ind. - The Finance Committee of the Purdue Board of Trustees on Thursday (Aug. 23) approved the university's 2013-15 legislative request for operating appropriations and line item requests to support several university programs and initiatives.

The request is based on instructions issued by the Indiana Commission for Higher Education and the State Budget Agency and is tied to performance metrics - primarily related to student success and cost reduction - established by the Indiana Commission for Higher Education. Under the ICHE plan, a pool of funds would be created by reducing institutions' operating appropriations - 6 percent for 2013-14 and an additional 1 percent for 2014-15 – and then reallocating those funds based on performance.

Based on the performance metric values as defined by ICHE, Purdue is requesting $313.4 million in operating appropriations system-wide, up $1.1 million, a 0.3 percent increase over the 2012 fiscal year appropriation level. Purdue West Lafayette's performance made it eligible to receive more than what would be withheld from its operating appropriations.

"Purdue supports the state's effort to increase graduation rates and reduce costs," said acting President Timothy Sands. "Purdue has exceeded goals such as degree completion, and even more notably, completion of what the state defines as high-impact degrees.

"We have a range of programs in place to ensure that students are well prepared upon arrival and supported once they are on campus. These programs help our students earn a quality degree in a timely way, reduce overall costs and increase returns on the state's investment."

The state is also asked to continue funding for programs and initiatives Purdue oversees for Indiana. These line item appropriations include:

Technical Assistance Program (TAP): TAP advances Indiana's economy and the health and quality of life of its residents. TAP supports performance improvement in Indiana companies, health-care providers and governmental units through various programs and services that utilize faculty, students and staff in nine statewide offices. Since 1986 TAP has had more than a $1 billion impact on Indiana. Funding request: $4.5 million, up $2.6 million. Almost all of the increase would be used to create an Office of High Performance Government, which would provide technical support to local governments to help them streamline operations. This is in response to the 2007 Kernan-Shepard "Streamlining Local Government" report.

Agricultural Research and Extension (Crossroads): This supports applied research and education for problems and emerging issues specific to Indiana agriculture. These funds are leveraged by federal and competitive funds at the rate of $8 for every $1 of state funding. The funding supports the state's Plant and Pest Diagnostic Laboratory and Purdue Agricultural Centers across the state, providing venues for site-specific research and Extension education programs. Funding request: $10.23 million, an increase of $3 million to support investments in Indiana plant and animal agriculture and rural entrepreneurship. The state investment has not increased since 1998.

County Extension Educators: Working in every county in the state, they provide unbiased research-based knowledge to Hoosiers. Funding request: $7.6 million, up $400,000 to cover inflation.

Statewide Technology: The Purdue College of Technology's statewide education delivery system is a partnership among regional/community education, industry and government. The program meets Indiana's need for trained technologists and technicians; provides the means for workers to update their education while still on the job; and offers degree options for recent high school graduates who can't attend the West Lafayette or regional campuses. Funding requested: $7.1 million, up $700,000. A portion of the increase would be non-recurring and would establish regional engagement hubs; transfer scholarships for Ivy Tech students; and science, technology, engineering and math (STEM) experiences in K-12 classrooms.

Center for Paralysis Research: Based in the College of Veterinary Medicine, the center focuses on research into traumatic neurological injury and subsequent treatment. Funding request: $544,217, up $21,659 to cover inflation.

Indiana Next Generation Manufacturing Competitiveness Center: Based on a partnership among Purdue, Ivy Tech Community College and Vincennes University, the new center would attract, retain and grow the state's high-value manufacturing industries. In collaboration with the state, Indiana companies, and small- and medium-sized manufacturers, the center would provide access to state-of-the art knowledge and practices in manufacturing processes, metrology, materials, systems and information sciences. The university is requesting $10 million to establish this center.

In addition, the university is asking that the state continue its support for research, based on a formula that would be developed by the commission. The state's investment in the previous biennium was $6.1 million, helping make Purdue more competitive for sponsored research grants. The funding helps Purdue provide startup packages to attract top researchers and covers costs related to laboratories, fellowships and postdoctoral researchers, and related system or staff infrastructure. Purdue has doubled its annual research expenditures to $600 million since 2006-07. At the same time, new sponsored program awards totaled $420 million for 2010-11 - most of them research-related.

The appropriation request also includes $44.3 million for debt service, an increase of $12.5 million. Also known as fee replacement, debt service represents funds replaced by the state when student fees are pledged against university debt service costs associated with certain academic facilities. The university also requests $18.5 million to help with the repair and rehabilitation of buildings, laboratories and classrooms.

The general fund, which supports the academic enterprise, is $1.22 billion for 2012-13. Of that, the state operating appropriation funded $312 million while student fees accounted for more than $764 million.

The total budget for Purdue's four campuses and 10 College of Technology Statewide locations for 2012-13 is $2.32 billion. Besides the general fund, it includes revenue from federal grants, gifts from alumni and corporations, student aid, auxiliary enterprises, indirect cost reimbursement payments on sponsored research, and earnings on the university's endowment.

Purdue's appropriation request will be submitted to the Indiana Commission for Higher Education, which will then forward the request to the General Assembly for consideration during its legislative session.

Writer: Jeanne Norberg, 765-494-2084, jnorberg@purdue.edu

Sources: Al Diaz, executive vide president for business and finance, treasurer, 765-494-9705, aldiaz@purdue.edu

Timothy Sands, president@purdue.edu