Education funds to rise

Indiana's newly passed spending plan is giving higher education some attention and funding after administering massive cuts to universities in last year's budget. But the current instability of the state economy has some worried about when and if the funding will arrive.\nEarlier this week, lawmakers passed a two-year budget of $22.7 billion that will go into effect in July. Although the budget is not exactly what Gov. Frank O'Bannon was looking for, he said he will sign the bill. The new spending plan allocates $540 million for economic development -- less than half of the amount O'Bannon wanted in his "Energize Indiana" plan. \nThe budget includes a 2.3 percent increase in 2004 to elementary and secondary education and a 1.9 percent increase in 2005. But they aren't the only ones who will benefit from this year's budget, as higher education also received some significant gains. \nDon Weaver, IU director of state relations, said while he would have liked to see the University receive more funding, he was still pleased with the amount IU was allocated during a tough economic period.\nAfter sustaining a $250 million cut last year, the new budget plans to restore 50 percent of the base funds at IU as well as 25 percent of the funds for restoration and rehabilitation of buildings on the IU campus. Additionally, the budget includes funding for capital projects, including over $30 million funding for the construction of the multidisciplinary science building on campus. \nWhile the allocated funds are only portions of the requests the University made earlier in the year, IU spokeswoman Jane Jankowski said she is pleased with the attention the spending plan showed to higher education.\n"The University absorbed many cuts from last year's budget, so we're pleased with priority of higher education in this year's package," she said.\nThe School of Informatics also received a major boost from the spending plan, as it plans to restore cuts that were made to the school last year. Once the new budget is in place, the School of Informatics at the Bloomington, Indianapolis and South Bend campuses will be able to operate at a fully-funded level. \nIU spokesman Bill Stephan said the support from the legislators will allow the University to expand the school and educate more students. Stephan said allocating sufficient funds to Informatics was a strategic move of legislation.\n"With more funds to the School of Informatics, we'll be able to benefit the economy by providing the workforce with more individuals who are more technologically efficient and knowledgeable," he said.\nRegardless of the funds the spending plan allocates to higher education, due to the heavy cuts from last year, an increase in tuition seems inevitable. The only question now is how much. Stephan stressed that the University is still only operating on 50 percent of its base funds, and it will need to get back on track. The IU board of trustees will make a decision on a tuition increase within the next two weeks.\nWhile O'Bannon has already stated he will sign the new budget, he and other state legislators have expressed deficit concerns that the spending plan might create, including a $400 million increase in the deficit by 2005. Some believe the two-year spending plan may have to be reviewed as early as next November.\nThe current economic problems have Weaver concerned about the arrival of some the University funding. Weaver said if the economy does not make a quick turnaround, the state might be forced to withhold some of the funds.\nDespite his concerns about funding, Weaver said he was very pleased with the fact that the general assembly is finally recognizing the importance of education. In addition to giving more money to education than Medicaid or prisons, this budget marks the first time in which the state is appropriating money to campuses for research.\n"It's nice to see them heading in the right direction," he said.\nThe Associated Press contributed to this story.