Brand warns of possible tuition hike

INDIANAPOLIS -- IU President Myles Brand warned a state house committee Tuesday that the quality of University faculty and the long-term economic health of the state were at risk because of a freeze of higher education spending in Gov. Frank O'Bannon's two-year budget proposal.\nBrand told the Indiana House Ways and Means committee Tuesday that IU would have to raise tuition 3 percent -- before inflation -- to break even under the governor's budget plan. But he said his biggest concern was retaining quality faculty members.\n"Other states are investing heavily in higher education," Brand said. "They are out there right now trying to recruit our faculty."\nWith state budget belt-cinching a certainty because of slowing tax revenues, IU faces a long battle to win funding for key initiatives -- including building a multi-disciplinary science building and expanding the School of Informatics.\nThe Indiana Commission for Higher Education recommended a budgetary increase of $60.5 million for the two-year span. But the governor's frozen spending would instead create a shortfall of $6.3 million, according to figures in Brand's presentation.\nThe governor's office has defended O'Bannon's proposal, saying the spending freeze is necessary because an impending economic slowdown will greatly reduce government revenue. State Budget Director Betty Cockrum said budget negotiations will likely continue until April.\n"We continue to see signs of a slowing economy," Cockrum told The Associated Press. "We are faced with some hard choices."\nCommittee members indicated O'Bannon's proposal would only be the starting point of a long budget-crafting process.\n"Hopefully, these numbers will be better in the spring," Rep. Bill Cochran, D-New Albany, told Brand at the end of his 45-minute presentation.\nMost of Brand's presentation focused on information technology. Brand introduced Eli Lilly Chief Information Officer Roy Dunbar and alumnus Scott Jones, CEO of Indianapolis-based Escient Technologies, who both talked about the need for quality Indiana graduates.\nBrand said that need could be met through the expansion of the School of Informatics. He said Indiana could be the "miracle of the Midwest" by investing heavily now in information technology.\n"Higher education could be the engine that drives the new economy," he said. "This is an optimistic vision, but I believe a realistic vision even in these tough times."\nJones, an adjunct Informatics professor, described how students in his class last semester put together business plans, and some have started information technology companies in the past months.\n"These students are our core assets," he said. "We need to invest in the state's future through our universities."\nLater in the day, lawmakers heard from representatives of Ivy Tech, the University of Southern Indiana and Ball State University, as they decide what to do with O'Bannon's budget proposal.\nBrand said afterwards that he was pleased by Rep. Cochran's statements, and noted that he got no negative feedback from the house members.\n"I thought they were listening carefully and were supportive," he said. "It was an encouraging meeting, but it will be a difficult uphill battle"