1. Indiana Commission for Higher Education May 11, 2007 Final Report on 2007-09 As- Passed Higher Education Budget

3. Total Base Appropriation Increases FY 08FY 09 CHE Rec’s5.3%4.9% $85.4M$83.2M General Assembly6.3%5.3% $101.7M$89.6M

4. Campus Operating Appropriation Increases FY 08FY 09 CHE2.9%4.4% General Assembly3.5%4.5%

5. Capital Appropriation Increases FY 08FY 09 CHE20.0%7.0% General Assembly20.0%10.4%

6. Compare CHE Recommendations to General Assembly Passed Budget CHE RecommendationGeneral Assembly Research Support Incentive Enrollment Change Incentive Change in Degree Incentive On-Time Degree Incentive 2-yr. Transfer Incentive Operating Support No Plant Expansion

7. Compare CHE Recommendations to General Assembly Passed Budget CHE RecommendationGeneral Assembly Fee Replacement in FY 09 50% of R&R Formula Repayment of Payment Delay Equity Adjustments New Academic Programs $156M New Capital Projects$418M New Capital Projects Economic Development Initiatives

8. Compare CHE Recommendations to As-Passed Budget ($ millions ) CHEGeneral Assembly FY 08FY 09FY 08FY 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 Plant Expansion$0.0

9. CHEGeneral Assembly FY 08FY 09FY 08FY 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 Equity Adjustments$0.0$0.5$1.7$2.1 New Academic Programs$0.9$3.5$2.2$3.8 Other$0.0 $1.6$1.9 Compare CHE Recommendations to As-Passed Budget ($ millions )

10. Campus Operating Increases INDIANA UNIVERSITY%Δ%Δ FY 08 %Δ%ΔFY 09 Bloomington2.5%$193,813,0074.3%$202,202,196 East3.5%7,993,1894.1%8,322,137 Kokomo2.3%10,357,2624.4%10,817,455 Northwest1.4%17,811,2961.4%18,061,296 South Bend1.4%22,699,7322.4%23,236,007 Southeast3.3%19,892,7744.8%20,848,802 IUPUI Health4.0%119,176,4624.4%124,434,677 IUPUI General Academic3.2%79,980,0304.2%83,311,562 2.9%$471,723,7534.1%$491,234,133

11. PURDUE UNIVERSITY %Δ%Δ FY 08 %Δ%ΔFY 09 West Lafayette3.6%$249,929,9624.8%$262,033,737 Calumet2.0%27,126,7334.0%28,212,704 North Central5.3%11,135,2467.5%11,969,824 IUPU Ft. Wayne3.0%37,116,9513.6%38,449,705 3.4%$325,308,8924.7%$340,665,971 Campus Operating Increases

12. %Δ%Δ FY 08 %Δ%ΔFY 09 Indiana State University1.7%75,149,4622.7%77,161,131 Univ. Southern Indiana7.0%37,675,4997.2%40,387,429 Ball State University2.8%126,383,8574.0%131,381,244 Vincennes University2.8%37,427,2994.1%38,967,141 Ivy Tech Community College of Indiana6.4%153,209,4496.0%162,415,053

13. Operating Support Campuses 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

14. New Academic Degree Programs ($ millions) CHEGeneral Assembly FY 08FY 09 FY 08FY 09 IUPUI (Columbus)*$0.9$1.8 $0.9$1.8 BSU Entrepreneurial Univ.*$0.0$1.0 PU Statewide Technology*$0.0$0.7 $0.0$0.7 ISU Nursing$0.0 $0.25 *recommended by CHE

15. Equity Adjustments CHEGeneral Assembly FY 08FY 09FY 08FY 09 Univ. of Southern Indiana$0$500,000$564,450 IU East$0 $32,357 IU Southeast$0 $292,435 Calumet$0$3$117,240 North Central$0$1$158,571 IUPU Ft. Wayne$0 $542,700

16. 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.

17. 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”

18. Fee Replacement Appropriation Increases 2006-07%Δ2007-08%Δ2008-09 Indiana Univ.$64,071,5509.0%$69,864,9305.2%$73,525,792 Purdue Univ.$26,102,88513.8%$29,701,69811.4%$33,100,762 Indiana State Univ.$7,282,61630.0%$9,465,4838.0%$10,224,769 Univ. So. Indiana$5,901,60160.8%$9,488,22215.9%$10,996,853 Ball State Univ.$10,808,93114.8%$12,408,66413.3%$14,064,079 Vincennes Univ.$3,861,82538.9%$5,364,55124.9%$6,700,593 ITCCI$13,119,37458.1%$20,738,00134.9%$27,967,850 TOTAL$131,148,78219.7%$157,031,54912.4%$176,580,698

19. New State Funded Capital Projects campusbondingcash 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

20. New State Funded Capital Projects campusbondingcash 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

21. New State Funded Capital Projects campusbondingcash 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

22. campusbondingcash 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

23. campusbondingcash 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

24. Repair & Rehabilitation FY 08FY 09 Indiana Univ.20.4%$12,601,2820.0%$12,601,282 Purdue Univ.19.1%$9,888,6590.0%$9,888,659 Indiana State Univ.13.6%$2,340,9900.0%$2,340,990 Univ. Southern Ind.40.1%$560,9630.0%$560,963 Ball State Univ.28.3%$3,363,1500.0%$3,363,150 Vincennes Univ.13.2%$1,136,4840.0%$1,136,484 ITCCI55.2%$1,143,5210.0%$1,143,521 TOTAL21.2%$31,035,0480.0%$31,035,048

25. Payment Delay Repayment INSTITUTIONFY 08FY 09 Indiana Univ.$12,171,920 Purdue Univ.$8,594,536 Ind. State Univ.$2,152,369 univ. Southern Ind.$806,015 Ball State Univ.$3,339,405 Vincennes Univ.$902,111 ITCCI$3,062,071 TOTAL$31,028,427

26. State Student Assistance Commission of Indiana FY 08FY 09 CHE7.2%4.2% General Assembly10.6%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

27. SSACI Cap and Public Tuition New public cap

28. Tuition & Fee Process Current Law provides Institutions set tuition & fees for 2 years at a time Institutions must announced proposed tuition & fees and give 10 days notice of a public hearing Public hearing must take place by later of May 15 or 15 days after budget bill passes Once tuition and fees are adopted, institutions may not increase fees unless state appropriations are withheld

29. 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

30. 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

31. HEA 1478- 2006 Repealed provision in budget bill CHE 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

32. Proposed 07-08 and 08-09 Tuition & Mandatory Fees Campus07-0808-09 Indiana University Bloomington5.0%$7,8865.0%$8,280 Indiana University East5.0%$5,2925.0%$5,557 Indiana University Kokomo5.0%$5,3255.0%$5,591 Indiana University Northwest5.0%$5,3995.0%$5,669 Indiana University South Bend5.0%$5,4935.0%$5,767 Indiana University Southeast5.0%$5,3745.0%$5,643 Indiana University - Purdue University Indianapolis5.0%$6,8495.0%$7,192

33. Proposed 07-08 and 08-09 Tuition & Mandatory Fees Campus07-0808-09 Purdue University West Lafayette4.5%$7,4154.5%$7,749 Purdue University Calumet4.5%$5,7124.5%$5,969 Purdue University North Central Campus4.5%$5,8184.5%$6,079 Indiana University - Purdue University Fort Wayne4.5%$6,3134.5%$6,597 Ball State University4.9%$7,1654.9%$7,516

34. Proposed 07-08 and 08-09 Tuition & Mandatory Fees Campus07-0808-09 Indiana State University5.9%$6,8375.1%$7,186 University of Southern Indiana6.0%$4,7916.0%$5,078 Vincennes University5.9%$3,9725.9%$4,206 Ivy Tech Community College of Indiana3.9%$2,8193.9%$2,929