TERRE HAUTE —
Reluctantly, Indiana State University trustees approved a budget request that could reduce ISU’s state operating appropriation by nearly $3.4 million in the 2013-15 biennial budget.
ISU is submitting the budget request per state instructions, part of a performance-based funding formula recommended by the Indiana Commission for Higher Education.
But in a separate motion, trustees also expressed “serious reservations” about the possible cut during their Friday meeting.
As part of that motion, they instructed trustee president Randy Minas to submit an accompanying letter expressing trustees’ belief that the state appropriation should not drop below current levels.
“I think it will be really difficult for us to absorb that $3.4 million cut,” said Mike Alley, an unpaid special advisor to trustees. He is on a leave of absence from the board to serve as commissioner of the Indiana Department of Revenue.
Such a reduction, if ultimately approved by the legislature, would reduce ISU’s state operating appropriation to slightly more than $64 million.
Diann McKee, ISU vice president for business affairs, said that over the past few biennial budgets, ISU has lost at least $10 million in state funding. At one point, it was about $77 million, and currently it is at $67 million. “We’ve seen quite a dramatic decline in state funding over the last six or seven years,” she said.
Now, ISU is looking at the possibility of an additional $3.4 million reduction to its state operating appropriation.
The funding formula, approved by the commission in August, is a recommendation to the General Assembly for 2013-15.
Under the formula, each of the seven public colleges and universities contributes a portion of its appropriation (6 percent in fiscal year 2014 and 7 percent in 2015) to a performance-based funding pool. The money is then reallocated back to the institutions based on performance in seven areas.
The formula assumes no new funding for higher education.
The performance criteria include overall degree completion; at-risk student degree completion; student persistence; on-time graduation rates (all colleges) and other factors.
ISU is concerned the formula uses older data that doesn’t reflect its current progress.
McKee emphasized the commission has made a recommendation, and it’s the first step in a long process will not conclude until the end of the 2013 legislative session.
Ultimately, the legislature approves state funding levels for the colleges.
But ISU trustees remain concerned — enough that they instructed Minas to submit the letter to the commission along with the budget request.
Trustee Ed Pease made the motion that trustees “express serious reservations regarding the budget request which results from CHE guidance and instructs the president of the board to request a budget of not less than current state operating appropriations for ISU.”
Alley suggested that when the budget goes before the legislature, ISU should also advocate that current funding levels be maintained.
Sue Loughlin can be reached at (812) 231-4235 or sue.loughlin@tribstar.com.
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ISU could be looking at less state funding
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