IU study seeks answers to a decade of higher education funding inequities

According to a new report by the Indiana Education Policy Center at the IU School of Education, IU and Purdue have been under-funded for more than a decade.\nThe study, "Trends in Higher Education Finance in Indiana Compared to Peer States and the U.S.: A Changing Context, Critical Issues and Strategic Goals," examines the current issues facing the state of Indiana higher education and the inequities in funding. \nThe study was written by Edward St. John, director of the Indiana Education Policy Center. St. John is a nationally recognized leader in educational policy research. \n"This study suggests strategic goals that could help guide the redesign of the Indiana system of higher education finance," St. John said.\nSt. John believes the study provides a more complete analysis than past reports on higher education finance. A research team for the study evaluated the state of all four kinds of Indiana institutions: research institutions, such as IU and Purdue, doctoral universities such as Indiana State and Ball State, baccalaureate colleges such as IU regional campuses and associate colleges such as Ivy Tech and Vincennes University. \nAda Simmons, assistant professor in the School of Education and co-author of the report, said she hopes it will have an impact in state legislation.\nWith the current lack of funding however, Simmons said it may take time to get the necessary funding. \nThe report proposed six goals to help rectify these inequities. They are to maintain resource revenue adequacy, increase funding equity, coordinate state appropriations and tuition, provide adequate student aid, develop a systematic approach for coordinating finance strategies and improve system efficiency through market incentives. \nThis report was distributed throughout the state, to other institutions and to the state legislature. \nBernie Hannon, who works in the governor's Office of Legislation, said the report outlined some strong problems in higher education finance. \n"It's an excellent, well-prepared report that summarizes good views about how to look at higher education finance," Hannon said. \nHannon believes there are two main ways to increase money to research institutions -- internal sources and external. \n"First, you have your internal sources, that being the state to increase revenue," Hannon said. "By working with colleges to increase jobs, you develop long term goals. In turn, it will bring more technology, tax revenue and better paying jobs to the state."\nExternal sources, he said, such as gift giving, donations and government grants are also essential to keeping state institutions well-funded. \nSt. John believes that it is time to undergo major reform in state finance strategies for all Indiana colleges, and these changes will take some time. \n"These imbalances will require adjustment over the long term, to develop a more equitable approach to the public financing of higher education where students and taxpayers pay a similar share of educational cost across different type of institutions," St. John said. "In order for these changes to occur, institutional leaders, state legislators and the Commission for Higher Education would have to agree on a uniform set of funding principles."\nA copy of the report can be obtained online at www.indiana.edu/~iepc/welcome.html.