By Danielle Rush, Kokomo Tribune staff writer
danielle.rush@kokomotribune.com
Indiana University Kokomo's share of $150 million in cuts to higher education will be $879,352 over a two-year period.
Interim Chancellor Stuart Green said he and Tim Sehr, vice chancellor for administration and chief financial officer, participated in a Jan. 8 budget roundtable with IU Budget Director Stephen Keucher, who explained the systemwide cut of $58,709,448, and what it means for each individual campus.
Green said while the Kokomo campus' cut was "not insubstantial," it was far less than an originally projected cut of $1.3 million.
Green said when IU President Michael McRobbie required budget cuts to the 2009-2010 budget, the Kokomo campus cut more than required, putting away $410,000 in a special account that will not be spent in 2009-2010.
The 2010-2011 budget will include that same $410,000 cut, he said, which makes up $820,000 of the required reductions.
"We will need to find an additional $59,352 as we construct the 2010 to 2011 to comply with the required biennial cut," Green said. "By simply reducing our base as we have already planned, we will manage the cut required by the governor and the Indiana Commission for Higher Education."
Part of the cut is that the campus will not receive any federal stimulus dollars, he said, because those are being diverted to prop up K-12 education, "along with the majority of other stimulus funds intended for higher education across the state."
Green said the cut is "good news. Good only because the cut is not larger. The bad news is that the state's economy is still in deep trouble and revenues continue to decline each month."
He said there are no guarantees there will not be more cuts before the two-year budget term is over. His staff will develop a contingency plan in case of additional cuts from the state or an enrollment shortfall for the 2010 to 2011 school year.
He added that the base budget cut is permanent, meaning when university officials begin budget negotiations with the state Legislature in 2011, the base will have been reduced by that $59 million.
"We cannot expect the Legislature or the governor to restore our funding. Indeed, we can anticipate additional calls for greater efficiency and belt-tightening."
Even with the cuts, local officials plan to continue pursuing construction of a health education and wellness facility on the Kokomo campus. IU first requested $17.5 million in bonding authority in 2008 for the 73,000-square-foot building, to provide space for programming in health, physical education and recreation. The university currently rents space for the programs.
Paul Nowak, vice chancellor for external affairs, said because the state's budget was set during the 2009 session, it will again be part of the university's capital appropriation request. Local officials will "continue to work with our local legislators for future funding of the wellness center and continue to emphasize the importance of having such a building on our campus," Nowak said.
Green said the Kokomo campus will weather the cuts, which he said are the largest state reductions it has ever experienced, because local officials planned the budget with a smaller tuition increase than occurred. Also, he said, enrollment is growing and students are succeeding, meaning they're staying in school at a higher rate.
"In sum, the campus is in good financial condition because of good fiscal management and because of the great work by our admissions staff, advisers and faculty. We can accommodate the required cut. However, the magnitude and permanence of the cut will require that we put numerous worthwhile projects on hold and requires that we revisit our campus priorities as we prepare next year's budget."