Gov. Joe Kernan will diagnose the state of Indiana tonight in his annual state of the state address in Indianapolis. Kernan is running for a full term as governor in this fall's election, and the political stakes for this year's legislative session are high.\n The fact is, Indiana's economy remains anemic. \nMost national indicators point to an economy on the rebound. The stock market is bullish, productivity is soaring and the unemployment rate is low. \n But the good tidings have yet to trickle down to the states. \n This is part of a national trend. According to the National Association of State Budget Officers, state balances across the country have dropped off 70 percent over the past three years.\n Indiana was slammed particularly hard by the last economic downturn that resulted in the loss of more manufacturing jobs here than anywhere else in the country. \n Tax revenue for the state during the past six months is $150 million below what was projected, and not surprisingly, individual income tax revenue is the farthest off target.\nLawmakers enacted the current budget last year, but with the disappointing revenue stream, cuts to plug the deficit are all but assured.\nKernan must not bring the ax down on higher education. IU and Purdue are vital parts of the economic recovery. A healthy research arm of the University creates new technology and promotes collaboration with the private sector. \nIndiana's manufacturing industry should be a proud legacy for the state. The future, however, is an information economy. The state won't recover until a full transformation is under way. With the right funding, IU graduates trained in the life sciences, biotechnology and informatics will lead the changing economy. \nA more troublesome consequence of education cuts is the effect they would have on families. If the state won't provide even basic funding, families will be forced to pay the difference.\nTwo years ago, in nearly the same predicament, the late Gov. Frank O'Bannon slashed $100 million from IU to stave off a billion dollar budget hole. The cuts came from the School of Informatics, UITS and the Physical Plant. \nIU trustees acted responsibly to preserve the institution, imposing a 9 percent tuition hike and a $1,000 fee for freshmen. \nAs it is, the state already pays a smaller portion of the cost for higher education than at any time in the past three decades.\nForcing trustees to raise tuition is a poorly disguised tax increase. But with tuition hikes imposed three years running, voters are no longer deceived.\nEducation cuts have become far too common of a remedy for this state. It's time to reverse the trend. \nKernan's speech tonight will be closely watched to see if he makes education, and the future of this state, a top priority.
Prioritizing education
Gov. Kernan's must act to preserve education, economy
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