Gov. Mike Pence is ordering organizations that receive state funding to hold some of their budgets in reserves because of low state revenue.
IU and other universities are appealing to Congress to reach a deal before another round of sequestration budget cuts come in January.
Ball State University officials say the formula favors large campuses, but Indiana University officials support the funding model.
Only 28 percent of Hoosier students pursuing a bachelor’s degree finish in four years.
In some Indiana counties, as many as 75 percent of all college students leave Indiana after graduation.
Indiana university presidents said they should not be bound by state legislative control.