Statehouse Update

The 1998 short session of the Indiana General Assembly convenes on January 6, and once again this year, Statehouse Update will keep you posted on legislative issues of interest to Purdue friends. Short sessions originally were designed to deal only with a limited number of topics that could not wait for the biennial budget-writing long session, but that's not necessarily the case today. Here's a preview of what's ahead.

Short Session Not Short of Issues

In recent years, the complexities of issues facing state government have grown, making the short sessions more important. As the new session begins, the Legislature will begin consideration of some 1,000 bills. Since the leadership wants to wrap things up by early March, any legislative proposal that succeeds will have to move quickly through the process to meet the deadline. It's likely that any bill with significant opposition will have trouble because of the limited time frame for differences to be reconciled and compromises to be crafted.

Throughout the summer, the governor's office and legislative leadership insisted that the budget would not be opened this time around, and that there would be no additional spending coming out of the 1998 session. But there's been some softening of that stance in recent weeks.

With a healthy state surplus -- and the fact that 125 of the 150 legislative seats will be up for election next fall -- the likelihood that fiscal issues will be addressed has increased significantly. Further, Gov. O'Bannon has indicated that he would support consideration of some additional spending and tax reductions.

Speaking of Money

The state's fiscal picture is very good heading into the session. Revenues continue to increase above projections, and the state's fund balances are projected at $1.6 billion, or $500 million higher than last July's projections.

Clearly, the state can afford to use some of the accumulated balances on one-time tax cuts, further reductions in unfunded pension liabilities, paying off bonded indebtedness, catching up on delayed maintenance on buildings and facilities, or needed investments in state or local government capital and infrastructure. These investments now can help relieve budget pressures in the future.

According to the Indiana Fiscal Policy Institute, state revenue grew by about 5.3 percent from 1989 through 1997, a period that even includes the recessionary early `90s. Revenue growth since 1993 averaged 7.5 percent, which points to the fact that even if another significant recession should occur, there would be little threat of cutting into education or other state-supported services.

Higher Education Priorities

The seven state-assisted higher education institutions, with support from the Commission for Higher Education, concur that our priority for 1998 will be to change the nature of the technology funding we received a year ago.

You may recall that the institutions received half of our request, but it was appropriated as a capital item, not part of our recurring operating appropriations. We will not ask for more, but will request that the recurring needs we have for more people to develop and maintain information technologies - as well as the ongoing need to upgrade software and equipment -- be recognized by making the current appropriation recurring. Any communication with legislators that reinforces this need will be most helpful.

Purdue Line Items

Regular Statehouse Update readers know about declining federal funding for the Purdue Cooperative Extension Service. That's what led to our request in 1997 for a $2.8 million increase in state funds for the replacement of federal dollars now used to support Purdue Extension personnel in Hoosier counties, and $400,000 to staff two regional Extension offices.

While this request received solid support in both the House and Senate, it was not included in the final budget package that came out of the special session. We will continue to inform legislators that the need for this funding continues. In fact, since the need is even greater than a year ago, this will be a key part of our efforts during this session.

Another vital service/economic development program Purdue operates is the Technical Assistance Program (TAP), which provides faculty expertise to business and industry to solve problems and increase competitiveness. Funding formerly came through the Indiana Business Modernization and Technology Corporation, but, through mutual agreement, the funds are now directly appropriated to Purdue.

Because of strong support from TAP clients around the state, there was a request for an additional $1.25 million for expansion of the program to underserved areas of Indiana. But the final budget did not provide for additional dollars, and, in fact, the appropriation was trimmed by $250,000.

Because of TAP's proven track record in improving Hoosier businesses' bottom lines -- and, thus, enhancing the state's economic well-being -- we feel it is most appropriate for legislators to address the funding needs of this vitally important Purdue service.

One on One

It was a pleasure to see so many PLAN (Purdue Legislative Awareness Network) and CARET (Council on Agricultural Research, Extension and Teaching) members at State Relations' reception December 20 before the Boilermaker Blockbuster basketball games in Indianapolis. It was our largest turnout ever, and our way of saying thanks to all those who take time to serve as advocates for Purdue.

Several Purdue faculty and staff were on hand to demonstrate some of the innovative ways in which electronic technology is being used as a component of the learning process. Just as the private sector has made massive investments in this same technology in order to improve productivity, so, too, must Purdue and other universities. After all, the institutions are the conduit that will supply leadership and staffing for tomorrow's work force needs in Indiana. That will continue to be a key component of our message to legislators as the 1998 General Assembly convenes.

After the January 6 "tip-off" of the 1998 session, we will return with a progress report on the early going.