Budget cuts inspire alliance

IU, Purdue and Ball State have joined forces to impress upon lawmakers the importance of acting on the state budget crisis before the end of the current session.\nThey are aligned as part of the Alliance for Indiana's Future, a coalition formed to protect the interests of various agencies and groups across Indiana.\n"Indiana University has been pleased to join with our colleagues in education, business, labor, and government to promote visionary thinking and the necessary action which will ensure a promising future for all Hoosiers," Myles Brand, IU president, said.\nState budget cuts could seriously impact students, faculty and larger university communities of Indiana. The state fiscal condition has inspired cooperation between public institutions, Brand said.\nIU faces a $55.5 million budget shortfall, while the deficit may cause a $90 million reduction in Purdue's funding. Ball State is estimating a $17 million loss. However, these numbers hang in the balance of decisions reached during this legislative session. \nIf voted into law, House Bill 1004, supported by Gov. Frank O'Bannon, would change appropriations for the 2001 budget. It would establish the tax relief fund and the tuition support stabilization fund. It would cap state spending and extend the general property tax reassessment, in addition to increasing cigarette and gambling taxes.\nThe issues binding the Alliance members together include the state revenue shortage that could result in a $1.3 billion budget deficit next year, reduced funding for public schools and universities, the potential property tax increase and the restructuring of the state tax system. \nThe group's members include a wide range of organizations including Central Indiana Corporate Partnership, Indiana Association of Realtors, Indiana Bankers Association, Indiana Chamber of Commerce, Indiana Farm Bureau, Indiana Health Industry Forum and Indiana Metropolitan Mayors' Alliance.\nMembers of the Alliance disagree on specific issues but all agree that lawmakers need to do something about the budget crisis.\nMartin C. Jischke, president of Purdue University, said he welcomes the opportunity to work collectively with the members of the Alliance for Indiana's Future.\n"I meet regularly with President Brand to discuss these issues," Jischke said. "Purdue and IU have a number of partnerships that have the potential to create new industries in the state, and we will be announcing more of them in the near future."\nAll seven state-supported institutions are active members of the alliance which has economic development as one of its five major principles.\n"Ball State is working very closely with the Governor's office and the state legislature to determine how to address the state's fiscal crisis," Blaine A. Brownell, president of Ball State said.\nIU, Purdue and Ball State are focusing on the role of research institutions to help develop the state economy. \n"The research done at universities like Purdue and IU is the engine that drives economic development," Jischke said.\nGov. Frank O'Bannon's tax and budget reform, House Bill 1004, narrowly made it out of the House of Representatives last Monday. IU, Purdue and Ball State are waiting for the Senate to vote on the budget before any official cuts or tuition increases are set. \nIn anticipation of the potential cuts in state funding, public universities have implemented hiring freezes and limited employee travel.\n"We have not make any decision as to cuts that will be imposed at Ball State since it is still our hope that the state's financial issues can be successfully resolved during this legislative session," Brownell said.