Indiana Commission for Higher Education

May 11, 2007

Final Report on 2007-09 As-Passed Higher Education Budget

University Budget Request and State Recommendation History

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

$1,800

Fiscal Year

Mill

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University Requests

CHE Recommendation

General Assembly Budget

SBA Recommendation

Total Base Appropriation Increases

FY 08 FY 09

CHE Rec’s 5.3% 4.9%

$85.4M $83.2M

General Assembly 6.3% 5.3%

$101.7M $89.6M

Campus Operating Appropriation Increases

FY 08 FY 09

CHE 2.9% 4.4%

General Assembly 3.5% 4.5%

Capital Appropriation Increases

FY 08 FY 09

CHE 20.0% 7.0%

General Assembly 20.0% 10.4%

Compare CHE Recommendations to General Assembly Passed Budget

CHE Recommendation General Assembly

Research Support Incentive Research Support Incentive

Enrollment Change Incentive Enrollment Change Incentive

Change in Degree Incentive Change in Degree Incentive

On-Time Degree Incentive On-Time Degree Incentive

2-yr. Transfer Incentive 2-yr. Transfer Incentive

Operating Support Operating Support

No Plant Expansion No Plant Expansion

Compare CHE Recommendations to General Assembly Passed Budget

CHE Recommendation General Assembly

Fee Replacement in FY 09 Fee Replacement in FY 09

50% of R&R Formula 50% of R&R Formula

Repayment of Payment Delay

Repayment of Payment Delay

Equity Adjustments Equity Adjustments

New Academic Programs New Academic Programs

$156M New Capital Projects $418M New Capital Projects

Economic Development Initiatives

Economic Development Initiatives

Compare CHE Recommendations to As-Passed Budget ($ millions)

CHE General Assembly

FY 08 FY 09 FY 08 FY 09

Research Support $10.2 $20.4 $10.6 $21.2

Enrollment Change $6.7 $13.3 $7.2 $14.5

Change in Degrees $0.0 $6.3 $0.0 $7.7

On-Time Degrees $0.0 $3.4 $0.0 $3.3

2-yr. Transfer $0.0 $0.5 $0.5 $0.5

Plant Expansion $0.0 $0.0 $0.0 $0.0

CHE General Assembly

FY 08 FY 09 FY 08 FY 09

Fee Replacement $25.9 $13.5 $25.9 $19.6

R&R $5.4 $0.0 $5.4 $0.0

Payment Delay $31.0 $31.0 $31.0 $31.0

Equity Adjustments $0.0 $0.5 $1.7 $2.1

New Academic Programs $0.9 $3.5 $2.2 $3.8

Other $0.0 $0.0 $1.6 $1.9

Compare CHE Recommendations to As-Passed Budget ($ millions)

Campus Operating IncreasesINDIANA UNIVERSITY %Δ FY 08 %Δ FY 09

Bloomington 2.5% $193,813,007 4.3% $202,202,196

East 3.5% 7,993,189 4.1% 8,322,137

Kokomo 2.3% 10,357,262 4.4% 10,817,455

Northwest 1.4% 17,811,296 1.4% 18,061,296

South Bend 1.4% 22,699,732 2.4% 23,236,007

Southeast 3.3% 19,892,774 4.8% 20,848,802

IUPUI Health 4.0% 119,176,462 4.4% 124,434,677

IUPUI General Academic 3.2% 79,980,030 4.2% 83,311,562

2.9% $471,723,753 4.1% $491,234,133

PURDUE UNIVERSITY %Δ FY 08 %Δ FY 09

West Lafayette 3.6% $249,929,962 4.8% $262,033,737

Calumet 2.0% 27,126,733 4.0% 28,212,704

North Central 5.3% 11,135,246 7.5% 11,969,824

IUPU Ft. Wayne 3.0% 37,116,951 3.6% 38,449,705

3.4% $325,308,892 4.7% $340,665,971

Campus Operating Increases

Campus Operating Increases%Δ FY 08 %Δ FY 09

Indiana State University 1.7% 75,149,462 2.7% 77,161,131

Univ. Southern Indiana 7.0% 37,675,499 7.2% 40,387,429

Ball State University 2.8% 126,383,857 4.0% 131,381,244

Vincennes University 2.8% 37,427,299 4.1% 38,967,141

Ivy Tech Community College of Indiana 6.4% 153,209,449 6.0% 162,415,053

Operating SupportCampuses received 1.42% FY 08 and 2.0%

operating support increases in FY 09 (CHE rec’s)

Most line items receives 2% or 3% increases except: IU State Dept. of Toxicology PU Statewide Technology PU TAP Program USI Historic New Harmony S. Central Educ. Assoc. College Coop SE ISU Degree Link

New Academic Degree Programs($ millions)

CHE General Assembly

FY 08 FY 09   FY 08 FY 09

IUPUI (Columbus)* $0.9 $1.8   $0.9 $1.8

BSU Entrepreneurial Univ.* $0.0 $1.0   $1.0 $1.0

PU Statewide Technology* $0.0 $0.7   $0.0 $0.7

ISU Nursing $0.0 $0.0 $0.25 $0.25

*recommended by CHE

Equity Adjustments

CHE General Assembly

FY 08 FY 09 FY 08 FY 09

Univ. of Southern Indiana $0 $500,000 $564,450 $564,450

IU East $0 $0 $32,357 $32,357

IU Southeast $0 $0 $292,435 $292,435

Calumet $0 $3 $117,240 $117,240

North Central $0 $1 $158,571 $158,571

IUPU Ft. Wayne $0 $0 $542,700 $542,700

Major Economic Development Budget Requests/Recommendations

IU Requested $80M over the biennium for the Indiana Life Sciences Initiative

PU requested $10M over the biennium for their Indiana’s New Manufacturing Economy Initiative

Governor proposed franchising the Indiana Lottery and using the proceeds (est. $1 Billion) to fund Life Sciences Faculty Recruitment and Retention Fund and Hoosier Hope Scholarships to address the brain drain.

Major Economic Development Provisions in As-Passed Budget

General Assembly did not authorize the Indiana Lottery franchise

General Assembly did appropriate $20 million to Indiana Economic Development Corporation in FY 09 to provide grants of $15M to IU School of Medicine and $5M to PU…

“to support the recruitment and retention of world class scientists specializing in the life sciences”

Fee Replacement Appropriation Increases2006-07 %Δ 2007-08 %Δ 2008-09

Indiana Univ. $64,071,550 9.0% $69,864,930 5.2% $73,525,792

Purdue Univ. $26,102,885 13.8% $29,701,698 11.4% $33,100,762

Indiana State Univ. $7,282,616 30.0% $9,465,483 8.0% $10,224,769

Univ. So. Indiana $5,901,601 60.8% $9,488,222 15.9% $10,996,853

Ball State Univ. $10,808,931 14.8% $12,408,664 13.3% $14,064,079

Vincennes Univ. $3,861,825 38.9% $5,364,551 24.9% $6,700,593

ITCCI $13,119,374 58.1% $20,738,001 34.9% $27,967,850

TOTAL $131,148,782 19.7% $157,031,549 12.4% $176,580,698

New State Funded Capital Projectscampus bonding cash

IU School of Medicine South Bend Cancer Research Institute $10,000,000

IU South Bend Arts Building Renovation $27,000,000

IU Southeast Medical Education Center A&E $1,000,000

IUB Cyber Infrastructure Building (1) $18,300,000

IUPUI Neurosciences Research Building (1) $20,000,000

Notes: (1) Recommended by CHE

New State Funded Capital Projects

campus bonding cash

IUPU Fort Wayne NE Indiana Innovation Center $5,000,000

IUPU Fort Wayne Student Services & Library Complex $24,000,000

PU Calumet Gyte Building A&E $2,400,000

PU North Central Student Services & Recreation Center A&E (1) $1,000,000

PUWL Boiler #6 (1) $53,000,000

Notes: (1) Recommended by CHE

New State Funded Capital Projectscampus bonding cash

BSU Central Campus Academic Project, Phase I & Utilities $33,000,000

ISU Life Sciences/Chemistry Lab Renov $14,800,000

USI College of Business/General Classroom Building (2) $29,900,000

VU Gibson County Ctr. for Advanced Manufacturing $5,000,000

VU Jasper - Advanced Manufacturing and Applied Technology Ctr $8,000,000

VU Special R&R (Health & Science Lab Renov) $2,000,000

Notes: (2) Recommended by CHE at lower level

campus bonding cash

ITCCI Bloomington Phase II A&E $0 $350,000

ITCCI Elkhart Phase I $16,000,000

ITCCI Fort Wayne Technology Center & Demolition Costs (1) $26,700,000

ITCCI Greencastle $8,000,000

ITCCI Indianapolis Fall Creek Expansion Project $69,370,000

Notes: (1) recommended by CHE

New State Funded Capital Projects

New State Funded Capital Projectscampus bonding cash

ITCCI Lamkin Ctr for Instructional Leadership & Development $1,000,000

ITCCI Logansport (2) $16,000,000

ITCCI Muncie/Anderson A&E $4,800,000

ITCCI Sellersburg $20,000,000

ITCCI Warsaw A&E $1,000,000

Notes: (2) Recommended by CHE at lower level

Repair & Rehabilitation

FY 08 FY 09

Indiana Univ. 20.4% $12,601,282 0.0% $12,601,282

Purdue Univ. 19.1% $9,888,659 0.0% $9,888,659

Indiana State Univ. 13.6% $2,340,990 0.0% $2,340,990

Univ. Southern Ind. 40.1% $560,963 0.0% $560,963

Ball State Univ. 28.3% $3,363,150 0.0% $3,363,150

Vincennes Univ. 13.2% $1,136,484 0.0% $1,136,484

ITCCI 55.2% $1,143,521 0.0% $1,143,521

TOTAL 21.2% $31,035,048 0.0% $31,035,048

Payment Delay Repayment

INSTITUTION FY 08 FY 09

Indiana Univ. $12,171,920 $12,171,920

Purdue Univ. $8,594,536 $8,594,536

Ind. State Univ. $2,152,369 $2,152,369

univ. Southern Ind. $806,015 $806,015

Ball State Univ. $3,339,405 $3,339,405

Vincennes Univ. $902,111 $902,111

ITCCI $3,062,071 $3,062,071

TOTAL $31,028,427 $31,028,427

State Student Assistance Commission of Indiana

FY 08 FY 09

CHE 7.2% 4.2%

General Assembly 10.6% 3.1%

Appropriations allow SSACI to raise the caps on the Frank O’Bannon Awards 7% for students attending both public ($6,090) and independent institutions ($10,990) in 07-08 academic year

SSACI Cap and Public Tuition

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

IUB

PUWL

BSU

IUPUI

ISU

IPFW

PUNC

PUC

IUSB

IUN

IUS

IUK

IUE

USI

VU ITCCI

New public cap

Tuition & Fee Process

Current Law providesInstitutions set tuition & fees for 2 years at a timeInstitutions must announced proposed tuition &

fees and give 10 days notice of a public hearingPublic hearing must take place by later of May 15

or 15 days after budget bill passesOnce tuition and fees are adopted, institutions

may not increase fees unless state appropriations are withheld

Tuition & Fee Process

HEA 1001-2007 (budget bill)For tuition and fees for the 2007-08 and 2008-09

academic years, the institutions appear before the state budget committee and have proposals reviewed before June 30

Beginning with 2009-10 academic year CHE sets “non-binding tuition targets based on the mission” of the institutions

Institutions may exceed the tuition target only if both CHE and Budget Committee review a request to do so

Tuition & Fee Process

HEA 1001-2007 (budget bill)For tuition and fees for the 2007-08 and 2008-09

academic years, the institutions appear before the state budget committee and have proposals reviewed before June 30

Beginning with 2009-10 academic year CHE sets “non-binding tuition targets based on the mission” of the institutions

Institutions may exceed the tuition target only if both CHE and Budget Committee review a request to do so

HEA 1478- 2006Repealed provision in budget billCHE shall recommend “non-binding tuition and

mandatory fee increase targets”Institutions shall submit a report to the State

Budget Committee concerning the financial and budgetary factors considered in setting tuition

State Budget Committee shall review both the CHE targets and the Institutions’ reports

Tuition & Fee Process

Proposed 07-08 and 08-09 Tuition & Mandatory Fees

Campus 07-08 08-09

Indiana University Bloomington 5.0% $7,886 5.0% $8,280

Indiana University East 5.0% $5,292 5.0% $5,557

Indiana University Kokomo 5.0% $5,325 5.0% $5,591

Indiana University Northwest 5.0% $5,399 5.0% $5,669

Indiana University South Bend 5.0% $5,493 5.0% $5,767

Indiana University Southeast 5.0% $5,374 5.0% $5,643

Indiana University - Purdue University Indianapolis 5.0% $6,849 5.0% $7,192

Proposed 07-08 and 08-09 Tuition & Mandatory Fees

Campus 07-08 08-09

Purdue University West Lafayette 4.5% $7,415 4.5% $7,749

Purdue University Calumet 4.5% $5,712 4.5% $5,969

Purdue University North Central Campus 4.5% $5,818 4.5% $6,079

Indiana University - Purdue University Fort Wayne 4.5% $6,313 4.5% $6,597

Ball State University 4.9% $7,165 4.9% $7,516

Proposed 07-08 and 08-09 Tuition & Mandatory Fees

Campus 07-08 08-09

Indiana State University 5.9% $6,837 5.1% $7,186

University of Southern Indiana 6.0% $4,791 6.0% $5,078

Vincennes University 5.9% $3,972 5.9% $4,206

Ivy Tech Community College of Indiana 3.9% $2,819 3.9% $2,929