BIER Committee Presentation to University Senate April 23, 2012

Down 32% since 2000 Up 6% since 2000 Payment Delays (Repaid in ) Spending cuts Below appropriations

 Slow growing economy restrains revenue ◦ Two recessions and two slow recoveries since 1998 ◦ Decline of manufacturing employment due to shift of jobs overseas and (especially) productivity growth ◦ Indiana responds with spending restraint, not tax increases  Medicaid costs take up more of the budget ◦ Higher medical costs and more beneficiaries  Larger share of higher education appropriation goes to Ivy Tech ◦ Importance of post-secondary education due to decline in manufacturing employment  Larger share of higher education appropriation goes to State Student Assistance Commission ◦ Tuition aid goes to students instead of institutions