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James Tinney

William Stephan

Last modified: Thursday, March 21, 2002

O'Bannon proposes additional cuts for IU

Indiana University's state allocation would be cut an additional $10 million under the budget plan announced by Gov. Frank O'Bannon on Wednesday (March 20). The reduction, which would come in the area of repair and rehabilitation of university facilities, would bring the total cuts to IU in this biennium to about $100 million.

"While we recognize that higher education will be a part of any budget solution, we are gravely concerned that further cuts will do lasting damage to our institution," IU President Myles Brand said in response to the governor's message. "The ability of IU to provide access to qualified Hoosier students and to take a lead in strengthening and diversifying the state's economy is being undermined."

Brand joined the presidents of five other Indiana public universities in signing a letter to Gov. O'Bannon urging him to call the General Assembly back into special session to address the issues of the budget deficit and tax restructuring. Efforts to pass a tax restructuring and deficit reduction plan stalled in the closing days of the recently completed session.

The $10 million in cuts for IU proposed by Gov. O'Bannon on Wednesday are in addition to the $19 million in reductions to the university's budget for information technology and repair and rehabilitation included in the 2001-03 biennial budget; $37 million in additional cuts for IU outlined by the governor in his balanced budget plan last November; and a $32 million monthly payment to the university by the state that has been indefinitely delayed because of the budget crisis.

University officials have yet to make final plans on how IU will address the impact of the latest round of budget cuts. Additional reductions in force (RIFs) are among the possible results.