Purdue Statehouse Update

VOL. 8, NO. 1 January 15, 2001 First Edition Of The Statehouse Update - 2001 Now that the members of the Purdue family have returned to a somewhat normal routine after a "Rosy" holiday period, it is time for attention to be focused on the 2001 session of the Indiana General Assembly. This issue of the Statehouse Update is being written as the members of the General Assembly are convening for the first week of the biennial "long" session. A short summary of the challenges to be faced in the coming months suggests that the issues are many, the dollars are few and the able assistance of Purdue friends throughout the state will be needed more than ever. Indiana’s Current Fiscal Picture The State of Indiana has an excellent, nonpartisan, system of forecasting state revenue. It is upon this forecast that the state builds its biennial budget. In December and April of each year, a non-partisan group of economists from the private sector and from academia develop an economic outlook for the coming two fiscal years. After this non-governmental economic outlook is developed, a bipartisan group of legislative staff members translate the consensus report into a projection of likely revenue for the state. The Governor’s office and the General Assembly then build the biennial budget on this projection. The revenue forecast, which was released in mid-December, will be the basis for the budget deliberations in the General Assembly until early spring. In April, there will be an update of the revenue forecast and that will become the basis for final budget deliberations. The December forecast provides some immediate concerns. But the outlook brightens in the future. Indiana’s immediate economic outlook follows a national, slowing, trend. A 2.6 percent increase in Indiana’s revenue had been projected for this fiscal year, which ends June 30. 2001. But, actual revenue will be more than $250 million less than anticipated. Of this amount, about $50 million is a result of the suspension of the sales tax on gasoline last summer. The shortfall this year will be covered by the state’s surplus. The outlook is more optimistic for the 2002 and 2003 fiscal years. The forecast predicts growth of 4.9 percent and 5.4 percent respectively. This translates into about $457 million and $529 million in additional dollars for the two years of the biennium. There will, of course, be many demands for these additional dollars. It is critical that voices which support higher education and Purdue University be heard. Purdue’s Budget Request Is Focused On Promoting High Opportunity Growth Areas For Indiana The brochure which has been prepared to support Purdue’s budget request begins with the following: "As a land-grant institution, Purdue is first and foremost a servant of the State of Indiana. More than 100 years ago, the University helped to develop Indiana’s agriculture and manufacturing sectors – the bedrock of our current prosperity. Today, we face the challenges of a new technology-and information-based global economy, and Purdue once again stands ready to empower Indiana citizens to adapt and flourish." Purdue’s budget request includes initiatives at West Lafayette and at the regional campuses. All of the proposals are focused on using Purdue resources to further advance Indiana’s economy. West Lafayette proposes new initiatives in biomedical engineering, computational science and genomics and biotechnology – areas vital to the future of Indiana’s high technology industry. Biomedical Engineering Initiative ($4 million — $4 million) A new undergraduate program in biomedical engineering complementing the University’s excellent graduate program and research in this area will enhance the state’s strengths in production of medical devices and in the health care industry. Computational Science Initiative ($4.5 million — $4.5 million) Advanced computation drives virtually everything we do today in business, industry, agriculture, teaching and research. Purdue plans to significantly upgrade its computing infrastructure, add supporting faculty and staff, and provide expanded undergraduate opportunities to meet job market demands. Genomics and Biotechnology Initiative ($4.5 million — $4.5 million) Applying life-science technologies to agriculture and the health fields has the potential to significantly impact Indiana’s economy. This initiative will provide an enhanced research environment that will create new life-science technologies for commercial development by Indiana business. Regional Campus Initiatives Calumet ($1.6 million — $1.6 million) Fort Wayne ($1.75 million — $1.75 million) North Central ($500,000 — $500,000) These initiatives utilize the unique resources of each individual campus to address economic development issues of particular concern to their service areas. In addition, the Purdue budget request continues to press for funds to bring the Fort Wayne and North Central campuses up to the average state support for students at all of Indiana’s regional campuses. This would require an additional appropriation of $1.4 million for Fort Wayne and $650,000 for North Central. These adjustments are very important, and the Purdue administration is vigorously pursuing them. Purdue’s requests for other services that will be provided to the state are: $250,000 in each year of the biennium for Ag Research to fund a study of the impact various economic activities have on Indiana’s watersheds. $501,000 in year one and $558,600 in year two of the biennium to add or expand high-demand programs for advanced learning in high-technology areas throughout the state. $900,000 in year one and $910,873 in year two for expanded assistance to Indiana business, industry, and government by the Purdue Technical Assistance Program (TAP). The final component of the Purdue request is for a 4 percent increase in salaries and a 3 percent increase in funds available for supplies and expenses. While this is an ambitious request it is also one which is clearly designed to have significant economic payoffs for Indiana. Viewed as investments, these expenditures can be returned to state coffers many times over. The next edition of Update will highlight the University’s request for new physical facilities. Also featured will be a first look at other issues surfacing in the General Assembly which are of interest or concern to Purdue. To Statehouse Update Home Page