Trustees approve outline for Purdue's 2007-09 state budget request

Final budget numbers will be submitted to the Commission for Higher Education by its Aug. 1 deadline, and trustees will review and act on the budget at their September meeting.

"Purdue's budget plan contains funding for continuing operations and new initiatives that strengthen the university while, at the same time, enhancing our role as a key partner in the state's economic development," said Purdue President Martin C. Jischke.

Purdue is requesting $5 million in fiscal year 2008 for an initiative called Indiana's New Manufacturing Economy. The proposal is designed to help position the state in the advanced manufacturing economy of the future through the discovery of new technology, rapid deployment of new products into the marketplace and work force education.

"Manufacturing, along with agriculture, has provided the foundation for our state's well-being for decades," Jischke said. "These sectors will continue to be key contributors to Indiana's vitality if we can develop and deploy the technology that will enable us to create new products in new ways."

State support for the initiative would help fund the growth of the plan's following key components:

• Manufacturing liquid fuels for energy independence.

• Conducting pharmaceutical product research.

• Discovering technologies and techniques to enhance the competitiveness of Indiana manufacturers.

• Researching new products, processes and market development for value-added agricultural enterprises.

• Working to develop a state transportation, distribution and logistics sector that is more efficient and more secure.

• Utilizing Purdue's statewide campuses as strategic partners. Statewide campuses would be involved in each element of the initiative, while emphasizing those elements of the highest priority in their geographic areas.

A second new initiative in the conceptual budget plan calls for a total of $1.2 million for Purdue's Technical Assistance Program, known as TAP. The program seeks to connect Indiana businesses, local governments and health-care organizations with Purdue resources. TAP's current state appropriation of roughly $1.1 million has remained nearly unchanged since 1996, Jischke said.

The West Lafayette campus is requesting $1.2 million in fiscal year 2008 and $400,000 in fiscal year 2009 for utility costs and operating expenses — referred to as plant expansion — for new facilities, including Neil Armstrong Hall of Engineering, Gerald D. and Edna E. Mann Hall (formerly known as the e-Enterprise Center), the Discovery Learning Center, Beck Agricultural Center, and other infrastructure and utilities improvements. The amounts are apportioned based on the buildings' date of occupancy. Much of the funding for these new facilities was provided by gift funds and other non-state appropriation funding sources. Additionally, $550,000 is being requested in fiscal year 2008 for utilities and operation and maintenance expenses for the music building at Indiana University-Purdue University Fort Wayne.

The West Lafayette campus is requesting a total of about $10.5 million for research support, funds that cover a variety of expenses associated with research, such as cost sharing in order to secure grants from external sources, laboratory upgrades and support for shared-use facilities.

"Research support funding is intended to enhance the university's ability to compete globally for sponsored program contracts with granting agencies and industry partners," said Morgan R. Olsen, Purdue's executive vice president and treasurer.

A 3 percent increase in support for students, staff and supplies for the Purdue system is included in the request. The increase is based on projected rates of inflation and reflects the importance of providing faculty and staff with competitive salaries and fringe benefits, Olsen said.

Other Purdue campuses are scheduled to receive state funding increases for enrollment growth, based on $3,500 for each additional full-time student. Based on this formula, the Calumet campus would receive $300,000; Indiana University-Purdue University Fort Wayne's increase would be $30,000; and Purdue North Central's increase would be $320,000. The West Lafayette campus is considered a "mature" campus in terms of enrollment and doesn't receive additional funds for increased enrollment.

The fiscal year 2006 budget for Purdue's four campuses and seven School of Technology locations is $1.6 billion. State general operating budget appropriations totaled $310.5 million, or 19 percent of the Purdue budget. Student fees accounted for 30 percent. Other funds came 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.

The trustees also approved a request for additional operating funds for the Animal Disease Diagnostic Laboratory to upgrade equipment to provide rapid diagnosis of animal diseases that have the potential to be transmitted to humans, as well as for potential bioterrorism and biocrime agents and diseases. The lab is requesting a one-time appropriation of $1 million for equipment and a permanent budget increase of $238,000 for additional staff and operating expenses. This 2007-09 biennium request will be considered by the General Assembly in 2007.

The Animal Disease Diagnostic Laboratory diagnoses illnesses in livestock, poultry, companion animals and wildlife. It also performs tests required by the U.S. Department of Agriculture, the Indiana Board of Health and for countries receiving exported animals or animal products.

Writer: Brian Zink, (765) 494-2080, bzink@purdue.edu

Sources: Martin C. Jischke, (765) 494-9708

Morgan R. Olsen, (765) 494-9705, mrolsen@purdue.edu

Purdue News Service: (765) 494-2096; purduenews@purdue.edu

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