Ind. colleges may suffer project funding losses

Indiana colleges say they need about $700 million for new buildings and other projects. The Indiana Commission for Higher Education has a different amount in mind: nothing.

For the first time ever, the commission has recommended no spending on university capital projects in the next two-year state budget. Rep. Dave Cheatham, R-69th District, said this is due to the struggling economy and a decrease in revenue.

“We were hoping that revenue would pick up,” Cheatham said. “We’re getting better, but we’re not back where we were.”

That does not necessarily mean that the CHE’s budget will pass any further than the committee level.

It needs to pass the Ways and Means Committee. The Ways and Means Committee is the chief tax writing committee of the House of Representatives. Without its support, the CHE’s budget will not move.

For that reason, IU spokesman Larry MacIntyre said it’s important not to make any assumptions of it passing or not.

Jason Dudich, associate commissioner and chief financial officer for the CHE, said it is important to realize that there are projects that will still make the cut, such as projects funded federally and privately.

The CHE has allotted funding for repairs and rehabilitation, but it does not recommend any new projects. 

What does this mean for the Briscoe renovations that began this school year?
Dudich said residence halls are funded primarily by student fees. When IU students pay to live in a residence hall that money goes toward many things, including renovations.

So what does this affect? Academic buildings.

Dudich said Indiana University has requested $57 million for the renovation of the Crescent Buildings. The Crescent Buildings are the buildings closest to Kirkwood and Indiana avenues. These buildings are part of the original Indiana University campus and date back to the late 1800s.

While the University might not receive all $57 million it requested, it will receive some of the money to put toward repairs and renovations that are needed to restore these older buildings.

But other projects will need to be placed on hold.

“We understand there is a need for these projects,” Dudich said. He recommends IU find private donors and outside sources, which, according to the Council for Aid to Education, do not seem to be in short supply to IU.

In 2010, IU jumped to first place among public universities in the nation in the amount of support it received from the private sector.

Nationally among all universities — including such schools as Yale and Harvard — IU is ranked 10th. IU and its satellite campuses received $342.8 million from gifts through the IU Foundation and Riley Children’s Foundation.

IU also received money from nongovernmental research grants. This is a 38.9 percent increase over 2009.

But, as MacIntyre said, “At this point we’re not making any assumptions.”