Hoosiers for Higher Education
IU Advocacy
2009 Indiana General Assembly Campaign
The 116th Indiana General Assembly Session began on January 6, 2009, and at midnight on April 29 the gavel came down according to the legislative calendar. However, the gavel did not mean the end of the session. As mandated by state law, every two years the legislature must pass a budget. Due to significant circumstances regarding the economic downturn and its effect on the state's projected tax revenues, as well as numerous other issues, neither chamber could agree on a final budget. Governor Daniels was also adamant that the budget be as lean as possible in order to get through a period of declining revenues. A Special Session was called on June 11 in order to determine a final budget that must be ready for the fiscal year starting July 1, 2009.
After receiving an updated economic forecast for the current year and next biennium that showed a $1.8B decrease in base revenue projections, the Governor presented his budget proposal to the State Budget Committee. In his budget he recommended an overall 5% cut (1% cut from FY 2009 appropriations levels and another 4%) to higher education which means IU's operating funds would be cut by $20M in FY 2010 and another $1M in FY 2011. IU would receive $25.2M in R&R funding for the biennium via Federal Stimulus funds. The only capital projects included in the Governor's proposal were for laboratory renovations at IUB and IUPUI at $10M each. The Indiana Innovation Alliance was not funded except for $3M per year for expansion of the Centers for Medical Education.
On June 10, the House Democrats presented a general overview of their one year version of HB1001. Higher Education would receive an approximate 2% increase, the 1% cut that occurred in December of 2008 would be rescinded, the capital projects that were included in the final Senate version of the budget would be maintained, and the Indiana Innovation Alliance would be fully funded with Part B State Fiscal Stabilization Funds.
The Senate passed it's two year budget on June 23 via a party line vote. In this budget, net funding varied by campus, but system-wide, IU appropriations would be 4.5% lower in FY2010 and 1.5% lower in 2011. Language in the bill indicated that a portion of state operating funds that were cut would be offset by federal stimulus funds--50% of stimulus funds to be used for operating expanses and 50% for campus R&R projects. IIA would be funded at $13M each fiscal year, R&R would total $25.2M for the system and two capital projects were authorized--$10M each for lab renovations at IU Bloomington and IUPUI.
June 30, 2009 - Compromise budget passes both chambers before FY ends
Given the state's fiscal condition, the General Assembly worked diligently to support IU and higher education. The final enacted budget demonstrated this in light of national economic pressures that have forced dramatic cutbacks at many public universities.
Below is a synopsis of key provisions in the budget bill:
- Total state operating appropriations for IU’s system were cut by 4.5% in FY 2010 and another 1.5% in FY 2011, although appropriation cuts vary by campus. Most importantly, we were able to convince legislators to permit federal stimulus funds to replace 100% of state operating appropriation cuts. Thus, total funding from state and federal dollars are the same as state appropriations for FY 2009.
- Indiana Innovation Alliance funding totals $10 million per year with $3 million for expansion of IU’s Centers for Medical Education, $2 million for Purdue technology programs and $5 million for core research.
- Repair and rehabilitation (R& R) for IU’s system is funded at $31million, including restoration of nearly $13 million that was cut in FY 2009.
- Capital project authorizations (total amount) included are:
- Northwest Tamarack Hall $33.0 million
- Indianapolis Neurosciences Building Phase II 33.0
- Bloomington Cyber Infrastructure Building Phase II 35.7
- Southeast Education and Technology Building 22.0
- Bloomington Life Sciences Lab Renovations 10.0
- Indianapolis Life Sciences Lab Renovations 10.0
Note: the 2007 passed projects (Neurosciences Phase I and IU South Bend Education Arts Building) both remained authorized.
- SSACI’s Frank O’Bannon and 21st Century Scholars grant programs received a modest increase.
The culmination of the budget session marks over a year of preparation, presentations, testimony, and advocacy. Your Government Relations team extends its sincere appreciation to everyone who supported Indiana University at the Statehouse.
Statehouse Visit
The 18th Annual HHE Statehouse Visit was held on February 17, 2009. To read a review of the action in the hallways of the statehouse, see the HHE Statehouse Visit.
Indiana Innovation Alliance
The Indiana Innovation Alliance joins together the efforts of academia, business, and government to strengthen Indiana’s assets in biosciences and life sciences.
While the state of Indiana is currently a national biosciences business leader, investment and employment in this industry are growing rapidly around the world. Boosting Indiana’s research sector is an economic and educational development priority that will keep Indiana competitive.
Learn more about the Indiana Innovation Alliance:
