Hoosier Economy Budget Brief: University presentations

Budget Brief: University presentations

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The Senate Appropriations Committee heard presentations from state universities on Tuesday, March 29. The following are brief summaries of the testimony provided by each university before the committee.

The University of Southern Indiana (USI) Go to Summary
Ivy Tech Community College Go to Summary
Ball State University (BSU) Go to Summary
Purdue University (PU) Go to Summary
Vincennes University Go to Summary
Indiana State University Go to Summary
Indiana University (IU) Go to Summary

The University of Southern Indiana (USI)

  • USI has the lowest tuition in the four state region. By combining state support and their tuition and fees revenue, the dollar per student ratio that they have to operate with is much lower at USI than at other institutions. USI has about $4,700/FTS less than other schools to support instruction and other university operations.
  • USI pointed out the university’s funding is well below the average university funding level and the gap continues despite the rapid growth that their university has seen in recent years.
  • Role of economic development in their region. They have a proven commitment to the region. And they support the community and economic growth in the state and in the area.
  • Where are our graduates? In 2009, 91% of graduates reported that they are working in their degree fields. More than 80% of USI grads stay in the region.

Funding Initiatives:

  • If received new money, how would they prioritize and appropriate it:
  • Increase the number of FT faculty. It is difficult to hire part time faculty in their region.
  • Focus on strengthening programs linked to student success. They have received $1.2M grant to enhance advising for low income/first generation students (increase graduation rates)
  • Increase on-campus student employment- USI students work more hours off campus than students at similar schools. Students are working FT and taking classes FT. More internships and employment will help support students and provide a supportive network to keep them on track in completing their degrees.

Capital Budget Request:

  • USI Teaching Theatre Replacement Project- approved in 2009. $13M requested in fee replacement for project.
  • R&R $15M- three academic facilities
  • R&R $3.45M – general rehab and infrastructure

Materials:


Ivy Tech Community College of Indiana

  • Ivy Tech begins by explaining where Indiana rates in terms of awarding higher ed degrees and then explains the many ways Ivy Tech can help alleviate this problem.
    • IN ranks 40th in per capita personal income.
    • IN has nearly 1M adults without the skills needed for the workforce.
    • IN ranks 39th in adults with a college degree.
  • Ivy Tech can help Indiana address these problems now at an affordable cost and with a high ROI.
    • IN’s undergraduate enrollment growth has centered at Ivy Tech. 42% of IN’s total enrollment growth went to Ivy Tech.
    • Last year Ivy Tech graduated 9400 workers; transferred 10,000 students; trained 23,000 workers.

Ball State University (BSU)

  • Ranked 20th for up and coming universities.
  • Carnegie recently reclassified Ball State as a research university. Previously not included in this area for state funding, so they asked the committee for reconsideration.
  • BSU is a “results oriented university.”
  • Almost 90% of their students are Hoosiers.
  • Have experienced over a 10% increase in enrollment since 2006-2007.
  • They are currently placing an emphasis on access and affordability.
  • Graduation rates- 6th highest long term improvement in graduation rates of any public research institution in the nation. Their 4-year graduation rate is up 63% in last ten years.

Economic development impact:

  • Asked the committee to fund their Entrepreneurial minor line item and Immersive Learning line item in budget because they help fuel IN’s economy.
  • Their Immersive learning initiatives have been cited nationally for their ability to train students for the changing economy.
    • Students graduate with resumes, not just transcripts. Students have to add value to community or business partners.
    • In past 3 years, 8,187 have worked on 514 projects in 69 counties.
  • BSU has ability to authorize charter schools. Hope to take lessons from this field to apply to other schools.
  • Geothermal project- 48 companies, 16 counties, will create over 2,000 jobs.

Concerns with Budget:

  • BSU places an emphasis on maintaining old buildings instead of building new ones. They are concerned about eliminating the R&R line item.
  • The Indiana Academy line item sees a 7.5% cut while all other K-12 public schools got an average of a 4.5% cut. This is the only public gifted and talented high school in the state and it would be unfair to treat it differently than other K-12 schools.

Materials:


Purdue University

Every dollar the state invests in research has an $11 ROI.

Impact of PU research:

  • Nearly one-half of Purdue students are engaged in a research project at some point during their college careers.
  • Graduates of PU earn a net return of $1M within 30 years of completing their degrees.
  • Largest employer in local area and 5th largest in the state.
  • $4B annual economic impact in state.
  • 54,000 jobs in all 92 counties.

Fiscal Challenges:

  • $21M cut in operating appropriations in FY 10-11
  • Had to meet the Governor’s challenge to reduce system wide expenditures by $45.5 M in FY 10.
  • This results in a $67.4 budget shortfall over FY 11-13 years.
  • See page 6 of presentation for a list of cuts and actions taken to reach governor’s challenge to reduce expenditures by $45.5 M cuts.
  • Anticipates continuing cost increases.
  • Administrators have taken no salary increases for 3 years.
  • This year Purdue hired one-third the faculty usually hired. Concerns expressed that quality of education will be eroded if this continues.

Materials:


Vincennes University

     

  • 40% enrollment growth in the last 5 years
  • 90% of their students going through the university’s career tech programs get jobs in their home areas
  • Operating at below 2008 support levels
  • 2nd lowest operating cost school in the state
  • Lowest cost residential school in the state
  • Appropriation per FTE is 25% below the state average (4th lowest of 8 universities and 4 regional campuses)
  • 60% of instruction is technical, which is the most expensive type to deliver
  • Highest teaching load in the state (lowest faculty and staff salaries in the state)
  • PPO cost of health insurance is less than the state’s consumer driven health plan and 33% less than the State’s PPO
  • Over the last 15 years, university’s growth in both tuition and state operating averages 3.42%. This is less than .9% over the CPI for the same period.

Materials:


Indiana State University (ISU)

Highlighted Achievements:

  • Award for contributions to citizen science
  • National award for K-12 professional development schools
  • Developed three new programs to address state’s critical shortage of health care workers.
  • Largest class of freshmen in university history. Up 33 % from last year.

Student profile:

  • 77% of students from IN.
  • 57% come from families where neither parent has a four year degree.
  • 78% apply for FA
  • 38% are pell grant recipients
  • 916 of ISU students are 21st century scholars.
  • 14.7% are African American

How they responded to budget cuts:

  • 10.5M budget cuts.
  • Froze salaries
  • Eliminated 108 positions. Laid of 98 and left 28 unfilled
  • Turned student health center to a contractor
  • Flattened administrative structure
  • Eliminated sabbatical.
  • Transitional retirement plan offered
  • Custodial and clerical services reduced.
  • Saved 1.4M with health benefits program
  • Accepted federal early retiree program
  • Committed to move employees to paying same share of health insurance that state employees do. Moving to state plan would cost 3M dollars.
  • Energy saving strategies

Plans to address 12-13 reductions:

  • 5 position lay offs and 10 positions were not filled. Eliminated a total of 15 positions.
  • Reduced operating budgets in select areas.
  • Undergoing an energy audit.
  • Implementing employee wellness initiatives
  • Searching for outsourcing opportunities
  • Streamlining business operations where possible.

Increasing revenue streams:

  • 09-10 was highest fundraising year in the history of the university
  • Five year goal of increasing contract and grants by 50%
  • Embracing accountability across the board on campus: by maintaining a commitment to student success (enrollment, retention, graduation)

Capital requests:

  • 1st priority-$14M in bonding authority
  • 2nd priority- release $5.4M that has already been appropriated
  • 3rd priority- $40M in bonding authority for HHP building

Materials:


Indiana University (IU)

  • Indiana is the only state who has won the Nobel Prize for two consecutive years.
  • IU is supportive of the performance based funding, but believes that the PFF needs to be appropriate to the mission of the institution.
  • One of most important things in their budget is the request for R&R and they hope the General Assembly will allow for that in the budget.
  • Tuition at IU is the lowest in the Big 10.

Materials: