Trustees approve resolution to limit health care

The IU board of trustees unanimously approved a resolution to restrict increasing health care costs at its meeting Friday. The resolution would take stronger measures to limit growth of IU funding for health care, which increased 21.3 percent this year, to 14 to 18 percent per year.\nDan Rives, associate vice president of University Human Resource Services, said IU's funding for its health care programs increased from $61.1 million in 2001-02 to $74.2 million this year at Thursday's board meeting. \nHe said technological advances, newer, more expensive prescription drugs and a growing aging population were some of the factors that contributed to the health care inflation.\nThe hypothetical cost in four years is $173 million. \nFred Eichhorn, president of the board, said the target rates pertained to IU funding for health care. \n"The resolution was intended to put emphasis on controlling health costs," he said. \nTrustee Sue Talbot said it was not an easy thing for the University to do.\n"A lot of health care companies have gone out of business," she said. "It's not the University that's trying to cut this out for its employees. It's the health care companies."\nThe IU Commission on Health Care will be dealing with the practical aspect of budgeting costs to allow for funding to increase between 14 and 18 percent.\nThe resolution will have an affect on tuition, trustee Stephen Backer said. \n"Certainly it will have an effect on it," he said. "But if we don't control this, they will have a much greater impact."\nResolution for former Pike house approved\nA proposal, allowing the University to exercise "statutory authority" over the former Pi Kappa Alpha house, was approved Thursday by the Facilities Committee and was approved by the board Friday.\nIt will give IU the right of eminent domain, which will allow the University to acquire the property once it goes through the necessary legal procedures. \nThe property, which was purchased by a private real-estate investor in early February, has been the cause of much controversy, after a local social service group, Millennium Project, proposed to turn the house into a homeless shelter. \nIU, whose initial offer of $640,000 was refused by the owner, has been trying to buy the property since September of last year. Eminent domain gives the University the right to take private property and use it for the public once the owner is fairly compensated.\nTrustee Peter Obremskey said it was unusual for the University to go through legal procedures to obtain the property, but added it was not the only option.\n"It doesn't mean we cannot continue to try and buy the property," he said.\nThe University is likely to use the property for administrative offices for the College of Arts and Sciences.\nThe Interfraternity Council also expressed an interest in the house, saying it needed the additional space. \nObremskey said the trustees had not heard anything official about the intentions of the private investor, but he said IFC may be considered if the University purchases the house.\n"The IFC is certainly an option," he said. "It just depends how badly the College of Arts and Sciences needs the space."\nWhen asked about the risk of upsetting the community he said he hoped they would back the University's plan.\n"It's hard to speculate what action the community would take but I would hope that they support us," Obremskey said.\nEichhorn was skeptical about the likelihood of the property being turned into a shelter, if it was rented to the social service group. \n"(The chance) that it would become a homeless shelter is remote," he said. "We think it is better used as a University facility"