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Statehouse Update 6

February 9, 2009

LEGISLATIVE DEVELOPMENTS

Action and Intensity Increases

The fifth week of the legislative session was marked by a significant increase in bills heard in committee and subsequent second and third reading actions on the floors of each Chamber. Several important events are noteable. President McRobbie presented IU's biennial request to the House Ways and Means Committee. The House Ways and Means Committee also took the unusual step of producing a one-year K-12 education budget in a bill (HB1723) authored by Rep. Terry Goodin separate of budget bill. Finally, the state's fiscal woes were worsened by the report of disappointing January state tax revenue results.

Biennial Budget

Indiana University, as well as all of the state higher educational institutions, presented their biennial requests to the House Ways and Means Committee. President McRobbie's presentation was well received as he discussed IU's operating and capital priorities. The President also discussed measures already undertaken by the university to address the current economic crisis and recent state budget cuts. President McRobbie also expressed concern regarding budget formulas recommended by the Commission for Higher Education that might disproportionately harm IU's regional campuses.

In a very unusual move, the House Ways and Means Committee produced a separate one-year (instead of biennial) K-12 education budget bill. Typically, there is one biennial budget bill incorporating all state appropriations. The bill would increase statewide funding for public schools by 2 percent, requiring some use of state reserves.

HB 1656 State Stimulus Legislation: This bill, which primarily would fund local road and street projects, was amended by Rep. Brian Bosma of Indianapolis to designate federal stimulus funds for R&R projects that have been submitted to the state for approval but were pending. If enacted, IU projects funded would total nearly $30M. Included in the amendment were the Education and Arts Building Renovation at IU-South Bend and funding for 2009 General R&R.

January Revenue Report: The state's January tax collections were released and total revenues were $142 million, or 11 percent below the amount that was projected. If this trend continues, it will further compound the state's fiscal woes, which are already severe. Of course, this negatively impacts the ability of the state to fund increases in higher education appropriations.

Other Legislation

Here are a few examples of legislation we followed this week:

HB 1014 Age Discrimination: As reported last week, this bill would add age discrimination to the Indiana Code as an illegal discriminatory act. The bill was amended addressing concerns by IU and Purdue. The amendment protects IU and Purdue's ability to maintain policies that match federal law and require retirement at age 65 for senior executives. The amendment was introduced by Rep. Vernon Smith of Gary and was unanimously accepted by the Committee.

HB 1656 Free Tuition for Foster Children: The bill would exempt foster children who enroll in college from paying tuition, room and board and books costs.

HB 1462 Limited Criminal History Checks: The bill, authored by Rep. Clyde Kersey of Terre haute, would exempt universities and their students from paying the costs of limited criminal history checks that are required before beginning student teaching assignments.

HB 1099 Use of University ID as Voter Identification: The bill would permit a university-issued ID, that has no, or an indefinite expiration date from being used as a valid ID when voting. This bill as written would assist all IU students in the ability to vote in Indiana elections and offset problems encountered by students going to the polls in recent years. The bill would also avoid a costly replacement of all university student ID's to include an expiration date.

Looking Ahead

Because of time limitations, IU and Purdue's joint Innovation Alliance presentation to the House Ways and Means committee was postponed this week but is rescheduled for February 11th.

As deadlines for hearing bills in committees approach, we expect even more bills will be heard increasing the number of bills being placed on second and third reading floor calendars.

Register for 2009 Statehouse Visit -- February 17

IU and Purdue will jointly host the Indiana Innovation Alliance Day at the Statehouse on February 17. Please join us as we show our support not only for the Alliance but for our biennial higher education appropriations request. For more detailed information and to register online, please visit our website at: http://www.gov.indiana.edu/hhe/statehouse/index.shtml.

Media Contacts

Jeff Linder
Associate VP for Public Affairs and Government Relations
jmlinder@iu.edu
317-681-1776