Higher education is among areas being targeted
Higher education is among areas being targeted for possible cuts, as the Indiana Senate takes up consideration of the state budget for the next two fiscal years.
In a year when the state’s fiscal fortunes have turned downward, it now appears quite likely that the Senate version of the budget will be quite different from a bill approved by the House. The Senate version will probably be smaller than the House bill. And talk in the hallways at the Statehouse suggests higher education is among several areas targeted for reductions.
The latest development comes after the House of Representatives passed its budget bill – (HB) 1001 – in a show of bipartisan support unlike any demonstrated in the Statehouse for many years. The legislation was approved by a vote of 81-18. There was strong feeling by leadership in the House on both sides of the political fence that, given the fiscal circumstances of the state, the budget which unfolded was as good as could be expected.
However, as soon as the budget passed the House, voices of concern could be heard from the Senate. Prominent Senators with fiscal responsibilities began to question a number of items in the House version.
Generally the message from these members of the Senate is that the House bill spends too many dollars. There also seems to be disagreement about the use of additional funds from the tobacco settlement to meet operating expenses. Other Senators have expressed concern about the ways in which gaming proceeds are used in the House bill.
In another area, there is concern that the House bill underestimates the amount of money Indiana will need to meet Medicaid expenses. Since Medicaid is an entitlement program, expenses incurred must be paid regardless of the amount budgeted. Some Senators are concerned that higher than projected Medicaid expenses could result in a significant budget imbalance over the next two years.
Representatives of the higher education community are continuing to make the case that the long term future of Indiana depends on strong support for universities. Every effort must be made to maintain and improve Indiana’s institutions of higher education.
House Bill 1424 — Representative
Pat Bauer (D-South Bend)
Other legislative activity saw strong support from the members of the House of Representatives for HB 1424. This is the proposal for a system of high tech incubator facilities, modeled after Purdue’s incubator at the Research Park. The new facilities would be developed at several locations throughout the state. This proposal also would expand Purdue’s Technical Assistance Program to additional locations in Indiana and would establish a system of assistance for economic development for rural communities.
The bill received strong bipartisan support and was approved by the House with a vote of 95-1. Hopefully, as this bill moves to the Senate, it will receive equally strong, bipartisan support for the future development of high tech industry in Indiana.
As this issue of Update reaches you, the legislative session has reached its midpoint. This means that to continue in the process, bills must be approved by their house of origin and referred to the other house. This will result in a significant reduction in the number of bills still alive in the process. The more than two thousand bills that were originally drafted for this legislative session will now total several hundred.
Words from the Presidents
Purdue University and Indiana University work closely on behalf of the people in many ways. Perhaps nowhere is the level of cooperation greater than in legislative efforts by the two institutions. In response to the current discussions underway regarding budget issues, President Martin Jischke and President Myles Brand offered a joint op-ed piece that appeared in a number of newspapers throughout Indiana.
Here for Update patrons are major excerpts
of that editorial. Hopefully, Update readers will find these comments of value for any discussion or
communication that occurs with legislators or other state leaders.
Purdue, IU presidents urge support
for higher education
In a difficult budget year, Indiana’s House has provided our public colleges and universities with some good news.
While falling well short of the Higher Education Commission’s recommendation, the House budget is a step forward from an earlier plan recommending "flat-line" funding for higher education.
In the mid-1980s, Indiana ranked 40th in the percentage of its high school graduates who continued to college. That situation has improved dramatically. The latest statistics rank Indiana 17th in the percentage of its high school grads who seek higher education.
Indiana achieved this growth while its relative investment in higher education declined. In the 1985-86 fiscal year, the state spent 15.5 percent of its operating funds on higher education. Today, that figure is 13.4 percent. We are educating a higher percentage of students while spending a smaller budget share.
Well-educated people have never been more important for the development of our economic and social potential. College educated people earn more – a $16,000 average annual difference between high school graduates and people with bachelor’s degrees. They also are more likely to create wealth by starting businesses. They are healthier, more involved in communities, less likely to commit crimes, and more certain to send their children to college.
IU and Purdue create and transfer the knowledge that holds the best promise for expanding Indiana’s economy. In a state that traditionally sends more in tax dollars to the federal government than it receives, IU and Purdue annually attract upwards of $600 million in federal research grants.
Indiana receives tremendous value for its higher education dollar. IU and Purdue consistently rank at the bottom of the Big Ten in per student state funding; yet we’ve maintained reasonable tuition and a long list of highly ranked academic programs.
We now face tremendous competition from other universities and the private sector for faculty members who are the key to excellence. In the high-demand disciplines upon which economic growth depends, these people make all the difference to our universities and our state. We must stay competitive in salaries, programs and facilities.
We recognize that the state faces a difficult budget year, with many worthwhile programs seeking support. But we will continue to argue strongly that investments in higher education are money well-spent, paying dividends both for individual Hoosiers and the state.
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