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Indiana Again Cuts College Budgets Amid Lagging Tax Revenue

The 2 percent cut totals about $27 million for the state's colleges and universities.

IU students take notes during class.

Photo: WFIU

IU students take notes during class.

Indiana is cutting another 2 percent from the state’s public colleges and universities in response to concerns about lagging tax revenues.

Governor Mike Pence announced cuts last year to state agency budgets after tax collections came in dramatically below expectations for the first half of the last fiscal year. He included a 2 percent cut to higher education funding.

The state ultimately ended the fiscal year just above projections.

But State Budget Director Brian Bailey says there’s still concern about state revenues going forward in the fiscal year that began last month and that continued cost savings is needed to maintain the state’s $2 billion budget reserve.

“Why the governor believes it’s important, why we believe it’s important is that is helps preserve dollars to spend on state agencies and universities through a critical downturn in the economy,” Bailey says.

But Senate Appropriations Committee Chair Luke Kenley says lawmakers made a deal with universities – keep tuition increases low and in return the state budget will include an appropriate funding level.

“The fact that the state may be cutting back here, it puts pressure on them to just go out and make these other decisions which would have negative consequences – for example, tuition increases,” he says.

The 2 percent cut for universities represents about $27 million.

Bailey says if tax collections meet expectations through 11 months of the fiscal year – that is, by next June – the state will release the money cut from the current fiscal year back to the higher ed institutions.

Brandon Smith, IPBS

Brandon Smith, IPBS has previously worked as a reporter and anchor for KBIA Radio in Columbia, MO, and at WSPY Radio in Plano, IL as a show host, reporter, producer and anchor. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.

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