Statehouse Report 14
April 13, 2009
LEGISLATIVE DEVELOPMENTS
Last week the long awaited Senate version of the biennial budget (HB1001) was passed out of the Appropriations Committee on a bipartisan 10-2 vote. Details of the bill are reported below. Also the deadline for final committee hearings on bills passed. Thus, any bill not heard in committee in the second house is now considered dead.
Biennial Budget Bill (HB1001)
The Senate Appropriations Committee passed its version of the biennial budget on Thursday. Overall, we are very pleased with how Indiana University and public higher education were treated in the bill. The following is a summary:
The operating appropriations essentially provide flat funding at the FY 2009 level. Using federal State Fiscal Stabilization Funds (SFSF), the 1 percent cut in FY 2009 (current fiscal year) state operating appropriations are replaced with federal funds. State funds were also cut by 1 percent during the two years of the upcoming biennium, but again were replaced with SFSF funds resulting in operating funding for most campuses at the FY 2009 level. Some campuses will receive limited additional funds if they experienced enrollment growth and progress in graduating students in four years.
Capital projects included in the bill are as follows:
- $33 million for Tamarack Hall replacement at the Northwest campus
- $10 million for life science laboratory renovations at Bloomington
- $10 million for life science laboratory renovations at Indianapolis
- $12 million for a new Center for Medical Education facility at West Lafayette ($6 million from the state)
- Repair and rehabilitation funding for the upcoming biennium is funded at one-half of the formula amount providing $25 million for IU's system. In addition, $12.6 million in funds for the current fiscal year that were previously cut were restored.
The bill includes language that expresses the Senate's desire that capital projects from the current biennium that have not yet been approved be initiated for economic stimulus. This includes the South Bend Education Arts Building and the first phase of the Neurosciences Building for the School of Medicine at IUPUI. Finally the joint IU/Purdue Indiana Innovation Alliance initiative was funded at $27.5 million compared to our request for $35 million.
Considering the state's extreme fiscal challenges, we are very pleased with the level of funding included in the bill. By designing a plan to tap federal stimulus SFSF funds, the Senate has been able to substitute federal dollars for state funds that would have otherwise not been available. Without the federal funds, our appropriations might have been severely cut. We also are very pleased that both the House and the Senate have indicated their support for IU and Purdue's Indiana Innovation Alliance by funding the initiative. One cautionary note was issued by the Chairman, Sen. Luke Kenley. The bill was written with the assumption that the revenue forecast update due next week would reduce state revenues by $1 billion. If the forecast revenue loss is greater, Sen. Kenley warned that appropriation cuts might be necessary.
Next week the bill will go to the Senate floor for second and third reading, setting the stage for conference committee negotiations on a final budget to be enacted by April 29.
Other Legislation
Developments on legislation impacting IU this week included:
SB 536 Pension Provisions: Last week we reported that this bill was amended in committee to require public universities with football programs to consider minority coaching candidates when filling open coaching positions. This language was removed in committee.
HB 1280 Internet Access to Budget Information: The bill would require the state auditor to work with state agencies and universities to collect and post budget and spending information on the Internet. Indiana University worked with the bill's author and Senate sponsor to amend the bill in a manner that addressed the concerns we expressed with the original form of the bill regarding potential costs and compatibility with information technology systems.
HB 1479 Recruitment of Educators: The bill, which requires the Indiana Department of Education to work collaboratively with the Indiana Commission for Higher Education, universities, and non-profit corporations to increase the number of educators from underrepresented populations, was signed into law by the Governor.
Looking Ahead
This week the deadline for second and third readings of bills on the House and Senate floors is Tuesday and Wednesday, respectively. The state revenue forecast update will be presented on Friday. We are anxiously awaiting the forecast but anticipate that revenue expectations will be significantly reduced. Our hope is that the reduction in revenue will not be more than the $1 billion assumed by the Senate in their budget.
