State cuts threaten research funding

A plan that some local experts and University officials say could grow Indiana’s economy is in danger, following threats of state funding cuts to a primary research group.

The state says it does not have money to fund the Indiana Innovation Alliance. Members of the Alliance want financial support for research and business collaboration between Purdue and IU.

The universities asked for $70 million over two years to fund research, buy equipment and improve health care.

It is a high priority for IU President Michael McRobbie, said University spokesman Larry MacIntyre. Among McRobbie’s missions are to advance academics and research and grow Indiana’s economy, he said.

“And this project, if it were funded, would do both,” MacIntyre said.

IU is already facing at least a 1 percent budget cut. Gov. Mitch Daniels wants to
continue to balance the state’s budget, but the state faces about a $1 billion shortfall.

Usually, the legislature doesn’t finish the budget until the last day of the deadline, MacIntyre said. The universities won’t know how much money, if any, they will get for the alliance until April 30.

Daniels’ budget is focusing more on infrastructure and public safety, said Jeremy Sowders, vice president of business development for the Bloomington Economic Development Corporation, which works with local life sciences companies.

That means less money to go around, including for the Indiana Innovation Alliance.

The overall goal of the alliance is to create more high-paying jobs in Indiana, create innovative new technologies and to take care of health care, Sowders said.

Combining forces would mean an increase in researchers, research assistants and other employees. Those on this larger payroll would buy houses and groceries and have a positive economic impact from Bloomington to Indianapolis to West Lafayette, MacIntyre said.

But it’s not a quick fix for the current economy.

This is a 10-year project at the earliest, Sowders said. Much of the economic impact of those companies would stay in the universities’ respective towns, he said, though surrounding communities could also stand to benefit.

Some of the money would be used to “match funds.” Often government grants require applicants to be able to match the amount the grant gives. This results in “untapped money,” Sowders said.

Purdue and IU rank toward the bottom of the Big Ten in receiving federal funding,
Sowders said. Increasing federal funding could also increase private funding from the companies on the east and west coasts.

An increase in money could also help entice researchers from big-name universities.

“The biggest thing is getting Indiana’s slice of the pie, so to speak,” Sowders said.

A large part of the money would go toward growing “core centers” – buying specialized equipment and building infrastructure, said Bill Stephan, IU’s vice president for engagement.

The equipment could be used by private companies on a fee basis. These companies aren’t able to buy their own, Stephan said.

It would also help to create equal access to the equipment for Purdue and IU, MacIntyre said.

The rest of the money would go to expanding the medical school, Stephan said.
This would mean increasing centers for medical education throughout the state.

Students can spend the first two years of medical school at these locations, but they must graduate from the school of medicine in Indianapolis.

This will help alleviate an approaching doctor shortage, Stephan said. The goal is to increase the medical school’s attendance 20 percent by 2013.

It’s the University’s responsibility, “since IU is the state’s only medical institution,” Stephan said.