State colleges face $150M in cuts as tax revenues fall

Back to TopCommentsE-mailPrintBookmark and Share

Indiana Gov. Mitch Daniels said the state will cut $150 million in funding for state colleges and universities because of a continuing decline in tax revenues.

Daniels also said Friday morning during a press conference that other steps will be taken because revenues are missing their targets significantly.

Tax collections for November were $144 million below forecast, and for the first five months of the fiscal year are $475 million below target. Daniels said if previously announced budget cuts and the new steps were not made, what was a $1.3 billion surplus in July would be wiped out by next summer.

Daniels said universities will work with the Commission for Higher Education in deciding how the $150 million in cuts will be made. A new revenue forecast will be presented on Dec. 15.

Indiana University President Michael A. McRobbie pledged to work with state officials on the cuts, but expressed concern that they be fairly allocated among the state's public institutions.

"It is ... essential that these new proposed cuts not fall disproportionately on institutions that have already made sacrifices that others were exempt from making," he said in a written release.

Other budget-cutting actions announced on Friday included:

— Suspending a $15 bi-weekly matching contribution to state employees for deferred compensation retirement accounts for calendar year 2010. Savings are estimated at $9 million.

— Directing the Department of Administration to further reduce the number of state-owned vehicles. Since 2005, the number of state-owned vehicles has been reduced by over 2,500, according to the governor's office.

Additionally, the governor will submit a package of cost-savings initiatives to the Indiana General Assembly.  It will include a proposal to combine the administration of the Public Employees Retirement Fund and the Teachers’ Retirement Fund, which is projected to reduce investment management fees and administrative duplication by at least $50 million per year. The proposal also will include merging or eliminating several boards and commissions.

House Republican Leader Brian C. Bosma, R-Indianapolis, applauded the cost-saving steps.

“Every level of government, including our universities, are having to cut back," Bosma said in a release. "While none of these decisions are easy, I think with all of us working together we can weather this fiscal storm. But the No. 1 priority must continue to be protecting the taxpayer, and I support the governor’s steps in this regard.”


  • IFA
    The Indiana Finance Authority let several folks go today.
  • Thanks, Brian
    â??Every level of government, including our universities, are having to cut back," Bosma said in a release.

    Agree, and look forward to the cuts that the legislature will make in its own operations.
  • Moneys There
    If the governor and INDOT would give up on the wasteful I-69 project, they could free up the $700M they had pigeon holed. The project is a total waste of the few tax dollars we have and could be put to much better use fixing the roads and bridges we have.

Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ