Colleges seek more money, urge incentives for graduation

INDIANAPOLIS -- The Indiana Commission on Higher Education is recommending that the state increase funding for colleges and universities by nearly 10 percent next year and implement a system that would reward those with the best graduation rates.\nHigher Education Commissioner Stan Jones told lawmakers Thursday that the state should increase higher education funding from $1.54 billion this year to $1.69 billion in 2006 and $1.75 billion in 2007. Those numbers include both operating and capital expenses for Indiana's public colleges and universities.\nBut the state has a projected $600 million budget deficit and owes more than $710 million in back payments to schools, universities and local governments; making increased education funding difficult, lawmakers said.\n"Obviously we can't afford all of it," said Rep. Jeff Espich, R-Uniondale. Espich, who chairs the House's budget-writing committee, said top priorities include funding student aid and keeping campus buildings running. The proposal suggests spending $113 million over the next two years on repairs and rehabilitation. He also has said it's important to catch up on the IOUs.\nJones said a graduation incentive program included in the recommendation would help Indiana's college system become more efficient. He said if the state pays colleges for improving their graduation rates, institutions will work harder to make sure students finish school.\nThe initiative would cost $4.6 million over two years, according to the Indiana Commission of Higher Education.\n"This is an incentive," Jones said. "We think this is pretty important."\nEspich liked the idea but suggested a more cost-effective approach might be punishing colleges that don't improve graduation rates. Taking money away from poor-performing schools and giving it to those improving their graduation rates would remove the need for the state to put up any cash, he said.\nJones also requested money to reward schools for growing enrollment and for increasing research projects.\nEspich said a new research program he's working on might help fund projects without the nearly $30 million price tag associated with Jones' two-year proposal.