IU to share in the pain

Hoosiers can look for Indiana's depressed economy to rebound -- if Gov. Frank O'Bannon fulfills his promises. \nThe governor gave his seventh State of the State address Tuesday, which focused on improving Indiana's lagging economy.\n"Mark this day because today is the beginning of a revitalized economy in Indiana, one in which our citizens can find and keep jobs that provide a living wage," he said.\nAn elevated economy won't be the only hike in Indiana -- college tuition could rise, as well.\nThe governor praised the creation of the state's first Community College system, a strengthened partnership between Vincennes University and Ivy Tech. He failed to explain how Indiana plans to keep four-year university education affordable in wake of the budget freeze, which affects universities.\n"I'm well aware that, at the very time when all of us are asking our public schools and universities to do more -- we cannot give them more resources to do it," he said.\nHe said his resolve to not propose new taxes has resulted in spending cuts. \n"These steps, as difficult as they are, are necessary for us to ensure a positive bottom line in the state budget for the next two years," O'Bannon said.\nFred Eichhorn, president of the IU board of trustees, which is responsible for approving IU's budget, is optimistic to O'Bannon's spending freeze. \n"It's not pleasant to be flatlined, but it's better to be flatlined than to be reduced," Eichhorn said, referring to last year's budget that reduced spending. "We try to make do with what we have and we would like to improve our situation, but it's apparently not something we can accomplish this year in this budget."\nJamie Belanger, an IU board of trustee member, said he spoke with Interim IU President Gerald Bepko Tuesday. Both men are uncertain whether the freeze will further increase IU's tuition.\n"It's really tough to say at this point what this is going to mean. It's a tough situation for the state right now and we're going to feel that hit," Belanger said. "We're well aware that the past few years tuition increases have been pretty significant, and raising it is the last thing we want to do."\nIU spokeswoman Jane Jankowski declined to comment on the University's position on O'Bannon's address.\nO'Bannon mentioned the state's accomplishments in the past year, citing Indiana's commitment to Healthy Families program, which works to prevent child abuse, and enrolling half a million children in Hoosier Healthwise, a health insurance program for children, pregnant women and low-income families.\n"We have received national recognition for our efforts," O'Bannon said. "But more important -- many more Hoosier children now have health care."\nO'Bannon said the controversial Interstate 69 extension will be a "transportation, education and economic engine" for many southern Indiana cities.\n"It will save lives by making travel safer through southwest Indiana," he said. \nO'Bannon also spoke on Energize Indiana, a $1.25 billion program launched this year that will attempt to improve the state's problem of brain drain -- the exodus of bright students from Indiana once they graduate college. The plan aims to revive the state's economy and entice graduates to remain in the state, through the creation of 200,000 new jobs, O'Bannon promised, in the sectors of advanced manufacturing, life sciences, high-tech distribution and information technology.\nO'Bannon said the challenge that awaits legislators is to write a two-year budget that will dig Indiana out of its current $850 million deficit -- a figure that has failed to improve despite increases in cigarette and casino taxes. The state experienced a $2 billion surplus in 1999.