Plan may halt construction

State Senate Republicans will place a moratorium on new construction projects -- including at universities -- in a proposed two-year budget they are expected to send to the floor today.\nSen. Lawrence Borst, R-Greenwood, made the announcement Wednesday on the heels of shrinking state revenue projections and a slowing economy. The State Budget Agency recently reported that February revenues fell $102.6 million short of forecasts, and Borst said the state must tighten its belt on spending.\nThe decision affects colleges and universities throughout the state, which usually rely on either cash or bonding authority for new projects during budget-writing sessions. The House version of the bill, which passed with lopsided bipartisan support, allowed IU bonding authority for a number of capital projects. \nIn the House version, IU would borrow money to fund a $30 million multidisciplinary science building on the Bloomington campus and a $20 million student center and library at IU-Southeast.\nFrom the start, Borst -- chairman of the budget-shaping Senate Finance Committee -- made it clear he would slash the House's $21.1 billion budget. Overall, he's now striking out $235 million for capital projects from the budget.\n "We understand the Senate must make some changes," University spokeswoman Susan Dillman said. "But we hope that opportunities for funding can be allowed."\nWhile Dillman said IU understands the need to trim the budget, she said the projects should take priority. It's not just a special interest, she said.\n"This isn't just for students," she said. "What we've asked for is critical for moving into the next century, making Indiana's economy more high-tech."\nUnder the Senate version, Ball State University would also suffer significantly. It is seeking $20 million in bonding authority for a new music building as part of a campus-wide renovation.\n"We're hopeful, but we have to delay comment on that," said Tom Morrison, assistant to the associate vice president for government affairs. "We'll wait until the budget has passed committee."\nThe Senate budget would not only affect established colleges -- it would also affect the state's plan to expand the community college system. Under the House version, around $60 million in bonding would have gone to Ivy Tech State College campuses in Evansville, Lafayette, Richmond, Terre Haute and Valparaiso. \nBesides university capital projects, the budget would undercut several state projects, including three regional centers for the developmentally disabled. The centers were a priority in Gov. Frank O'Bannon's legislative agenda.\nThe budget endorsed by Borst is likely to sail through the Republican-controlled Senate, as it has in the past. The Senate would then enter into negotiations with the House before sending it to the governor. \nWhile O'Bannon's proposed budget was more fiscally conservative then the House version, it was unclear at press time whether he would veto the Senate version.\nO'Bannon spokesman Thad Nation could not be reached for comment Wednesday.