Statehouse Report 12
March 30, 2009
LEGISLATIVE DEVELOPMENTS
Ushering the budget process along
With only three weeks remaining for bills to be heard in committee, there was a steady stream of hearings last week. However, not many bills that concern Indiana University have been heard. Apart from work on bills in committee, the IU State Relations team continued to work with legislators and staff to provide additional information about our regular biennial budget request and the Indiana Innovation Alliance initiative.
Biennial Budget Bill (HB1001)
Last week the Senate Appropriations Committee held a hearing for the budget bill (HB1001). This hearing afforded the author, Chairman of the House Ways and Means Committee Bill Crawford, the opportunity to provide a review of the House-passed version of the bill and answer Committee members' questions. Chairman Crawford and the committee engaged in a respectful and productive exchange, and this is hopefully a predictor of positive deliberations on the Budget in Conference Committee.
We expect the budget to be amended in the Senate Appropriations Committee during the week of April 5. Much work is ongoing in an attempt to determine how to best tap and use State Fiscal Stabilization Funds included in the federal stimulus bill enacted by Congress in February. Given the prospect for further cuts in projected state revenues when the revised state revenue forecast is issued in mid-April, the ability to access the federal dollars to fund the state budget likely will be critical.
Potential federal funding available to the state totals more than $4 billion over the next two years and includes the follow:
- Medicaid program and other health care funding -- $1.4 billion
- Education funds for public schools and universities -- $1.3 billion
- Highway and road construction and public transportation -- $740 million
- Nutrition programs -- $400 million
- Water quality programs -- $120 million
- Home energy efficiency funds -- $135 million
The challenge for the state is to find ways to meet the requirements for accessing the funds while at the same time not creating a reliance on the funds that will be difficult to maintain when the federal funds expire in two years.
On another budget-related matter, the State Student Assistance Commission, the state agency that administers state financial aid programs for college students, announced the possibility of major reductions in student grants beginning next fall. Due to a projected 30 percent increase in applications for financial assistance statewide and the likely inability of the state to appropriate a significant increase in funding, SSACI announced that it might be necessary to reduce the maximum amount of a grant from $6,096 currently to $3,294 next fall, a 46 percent reduction. Of course IU has significant concerns about the impact this could have on our students and will continue to monitor this development closely.
Other Legislation
Developments on other IU related legislation last week included:
SB 39 Purple Heart Recipient Tuition Exemption -- The bill revised the current statute, which provides tuition exemption for a person awarded the Purple Heart while serving in the military after September 2001, by extending the benefit to any Purple Heart recipient, regardless of their service date.
SB 254 Voter ID -- This bill would permit the use of university ID's that have no expiration date or have an indefinite expiration date when voting in elections. The bill was voted out of the House on a largely party line vote of 53-47. This bill will now be eligible for Conference Committee.
HB 1620 Energy Efficient Buildings and Energy Savings Contracts -- The bill was heard in committee and IU testified in favor but expressed concern about a provision requiring repair and rehabilitation projects to be completed in compliance with green construction standards. While supportive of pursuing energy savings in all projects, we are uncertain if the bill's standards can be cost effectively met on small R&R projects. The bill would also remove the cap on issuance of energy savings bonds for projects focused on improving energy efficiency.
Anatomical Education Board -- IU worked with the Indiana Anatomical Education Board, administered by the IU School of Medicine, to insert an amendment into a bill to permit the transfer of cadavers to other states for medical education and research. Because of the good work of the AEB, it receives more cadaver donations than can be used in Indiana. The amendment allows IU to help our sister states who have unmet needs, while respecting the desires of families of individuals who have donated their bodies for scientific research upon their death.
Resolution Honoring Dr. Ora Pescovitz -- The highlight of the week was passage of a resolution in both the Senate and the House honoring Dr. Ora Pescovitz for her service as an executive associate dean at the IU School of Medicine, chief executive of Riley Hospital, and physician for many patients. Dr. Pescovitz was surprised to find many of her Riley Hospital colleagues and former patients present with her to receive her award. It is extremely rewarding for the State Relations team to see individuals at Indiana University honored for their outstanding work and service. It certainly makes us proud to introduce to the General Assembly one of our many terrific Indiana University colleagues. Although we are losing Dr. Pescovitz to the University of Michigan, her accomplishments here, and the hope and health she provided to the many Hoosier children who were treated at Riley Hospital, and through her pediatric endocrinology/diabetes medical practice, will not be forgotten.
Looking Ahead
Any bill not heard in committee by April 9 will be dead, although if the bill passed either the House or Senate, it can be inserted into another bill during conference committee. Action during these next weeks will intensify as members attempt to rescue their own bills or have language inserted into other bills that remain alive. We also continue to anxiously await the Senate version of the biennial budget bill and monitor deliberations.
