Statehouse Report 10
March 10, 2009
LEGISLATIVE DEVELOPMENTS
A Little Respite
It was a relatively slow week in the Statehouse and a welcome change of pace following the hectic schedule of the previous few weeks. Many of this week's Floor Sessions involved the passing of resolutions in each chamber honoring numerous deserving Hoosiers.
Typically deliberations on bills in the General Assembly ratchet back up gradually after the midway point of the legislative session, following consideration of bills introduced in the House and the Senate. It takes some time for the House to sort through the bills that were introduced and passed in the Senate and to assign them to the proper committees in the House for further consideration. Of course, the same is true for the Senate, which is now considering bills introduced and passed in the House. There were only a few bills of interest to IU heard in committee last week, but we expect committee action to increase each week until the deadline for committee hearings occurs in early April.
The slight lull in action provides time to assess how the session has progressed thus far. A quick assessment finds that higher education in general and Indiana University in particular has been treated very well in the House passed budget bill, as discussed further below. This is especially true given the state, national and world economic situation.
On policy related legislation, we also have been able to work with bill authors to modify several items to address issues of concern to Indiana University. There are still a handful of bills that we will continue to work to address remaining concerns during the second half of the session, assuming these bills continue to move through the legislative process. During the final two weeks of the session conference committees work to resolve differences in versions of bills passing each chamber. It is a time in when we must be particularly observant to review all legislation since any language that passed one chamber can be inserted into a conference committee report, the final form of a bill that is enacted.
One good thing about this point in the session is that there are fewer bills to monitor. Of more than 1,300 total bills introduced, 440 were passed in the chamber in which they were introduced. Of that total, there are still more than 30 bills of importance and interest to Indiana University. We will closely monitor their further progress as the session continues and continue to work with the authors and sponsors to address any remaining issues we may have.
Biennial Budget Bill
As we previously reported, the House budget provides a 1 percent operating increase plus enrollment change funding for eligible campuses. In addition, the IU/Purdue Indiana Innovation Alliance was fully funded as requested at $35 million. Finally, the budget includes all of the capital projects requested by Indiana University as part of its 2009-2011 Capital Request. While final resolution of the state budget is tenuous at best, especially as the state's financial condition continues to deteriorate, we are very pleased with the support shown Indiana University through the House Budget Bill.
The spotlight of attention -- and media focus -- now shifts to the Senate Appropriations committee, which is beginning budget hearings by state agencies as well as universities. Indiana University's presentation is scheduled for March 16. We anticipate that committee will release its version of the budget near the end of March. Final resolution of the budget will come through the conference committee process at the end of the session. However, prior to conference committee time, a revised state revenue forecast will be produced in mid April. This report, if negative, could severely impact final appropriations decisions and the entire budget making process.
February State Revenue Report
The February revenue report was released on Friday, and revenue for the month was down $42 million from forecast or 6.3 percent. In fact, state revenue collections have been down every month since the revenue forecast produced last December, an indication that the April forecast likely will be further reduced.
Perhaps most telling, revenues were 10 percent less than February 2008, and compared to the first eight months of the prior fiscal year, total revenues are down 3.8 percent, exactly as forecast in December. To put this situation in perspective, we have only experienced three years in which revenues have been negative the past 25 years.
Looking Ahead
We expect that more committee hearings will be scheduled next week and some bills will make it to the floor of the House and Senate for second and third readings.
