Purdue Statehouse Update
Purdue Statehouse Update
|
|
With April quickly approaching, the Indiana House and Senate now each have their own budget bills, and the differences between them will be resolved in a Conference Committee that follows an important economic report.
The report, due in mid-April, will give legislators the latest indications of how much revenue the State of Indiana can expect to collect during the next two years. That information will be used by the Conference Committee as the basis for a compromise The House has already approved a budget bill. Last week a budget with a different set of numbers was approved by the Senate Finance Committee. It is expected to be approved by the full Senate. Like the House version, the Senate budget is cause for both optimism and concern among Indiana’s institutions Optimism centers on the fact that the Senate Of concern in the Senate bill is the amount of money provided to meet inflation and faculty and staff compensation. In personnel compensation, the Senate budget provides no increase in the first year of the biennium and a 1 percent increase in the second. The House version supplies 3 percent each year. Also, the Senate bill does not provide funding or authorization to bond for capital expenditures. The House version supplies some money for new buildings and programs and authorizes bonding. We are hopeful that our employee compensation and capital project concerns will be addressed in the Conference Committee. Purdue is moving up to the next level of excellence, and to do that we need to attract and retain top faculty and staff. Competitive compensation and state-of-the-art equipment and facilities are needed to keep pace with other universities and the private sector. We recognize that Indiana faces significant revenue problems this year. These, and other concerns, were highlighted by Indiana’s revenue collection for the month of February. The state’s actual collection in the personal income category was In response to these difficulties, the budget situation in Indianapolis this year has been very fluid. While the Senate budget plan does not include as much money for higher education as the House version, it does fund universities at a higher level than a proposal that emerged from the Governor’s Office in January. There are positives for higher education in both the Senate and House bills. We will continue to work with the governor and the legislature to find solutions to Indiana’s current revenue problems. We have put forth proposals that we feel will grow the economy and help prevent revenue shortfalls in the future. Members of the General Assembly are well aware of the importance of education to the future of this state. It is also clear that they will make every effort in the final stages of the legislative process to provide funding for higher education – within the confines of their abilities. Readers of Update who share a concern about Indiana’s educational future should use every opportunity to express that opinion to legislators. The final weeks of the legislative process are yet to come, and it is during these hectic times that voices of support are most critical. House Bill 1424While the budget for the next two fiscal years is a major concern, one bill that touches Purdue University very closely is receiving broad, bipartisan support. The Senate Energy and Economic Development Committee has voted 10-0 in favor of legislation that has as its centerpiece the establishment of high technology centers. While it does not contain funding, the bill establishes the mechanisms for future funding of these high tech incubator facilities throughout Indiana, based on a highly successful model at the Purdue Research Park. The bill would also expand the Purdue Technical Assistance Program, which has provided amazing help to Indiana businesses and industries during the past 14 years. And, it would establish a program for economic development assistance in rural areas not large enough to fund these efforts on their own. Authored by Representative Pat Bauer, the bill, HB 1424, has already passed in the House of Representatives. In the Senate, it is sponsored by Senator Bob Meeks, Senator Greg Server and Senator Bill Alexa. This legislation is vital to Indiana’s future. It is needed to expand the state’s economy beyond the traditional dominance by manufacturing, adding diversity that becomes especially important during times of economic slowdown or recession. Across the nation this year, states that are strongly dependent on manufacturing are facing revenue shortages as this sector of the economy slows. Indiana employs a higher percent of its workers in manufacturing than any other state. This is one of the reasons Indiana is facing a year-to-date $153 million revenue shortfall. Development of new high technology business and industry will add to Indiana’s economic growth in future years, and it will provide economic diversity that will help to offset slowdowns in any one area. New jobs and prosperity will be created, and all of this will help to eliminate the brain drain of our top graduates seeking jobs outside Indiana. The provision of HB 1424 that expands Purdue’s Technical Assistance Program to additional locations in the state beyond West Lafayette is also an important step in Indiana’s economic development. The Technical Assistance Program provides businesses and industries with the university’s expertise in dealing with specific problems and concerns. In the past 14 years, it has increased Indiana business sales by $279 million and created or saved 3,800 jobs. Expanding this program will bring technical assistance closer to all parts of Indiana and will enable even faster response. HB 1424 provides the type of economic development that Indiana needs to be a global player in the 21st century. |
