IU hopes for piece of proposed stimulus

Two days after President Barack Obama was sworn into office, some hope an $850 billion stimulus will follow his inauguration. But Indiana lawmakers and IU experts say they are not banking on his proposed federal stimulus package to help the state’s struggling budget.

Last year, Republican Gov. Mitch Daniels cut higher education spending by 1 percent in the state budget and is proposing an additional 4 percent cut for the next fiscal year, which begins in July.

It’s possible a federal stimulus package could include increased funding for state universities. But some Indiana politicians, especially Democrats, said the state needs to handle these issues internally rather than leaning on the federal government for support.

Patrick Bauer, Indiana’s Speaker of the House, said state lawmakers are wary to depend on a stimulus from the federal government. Using federal money is an excuse, he said, that would allow them to get “free money from Washington.”

“We in the Democratic caucus, which is the majority in the House, believe that we just can’t rely on the federal government to bail us out,” Bauer said. “There’s just not a lot of money everywhere.”

Tom Morrison, associate vice president for public affairs and government relations at IU, works with lawmakers to get funding for the University. Morrison said investing in education was the key to growing the economy.

He said though they “understand the economic reality,” he thought education was a more important investment.

“When the economy gets tough, more people go back to school,” he said. “We’re already seeing some of the earlier reports that enrollments across the board are up at IU, and particularly the regional campuses.”

Morrison said Obama has discussed investments in infrastructure that would be voted upon in February.

“We certainly hope that those investments in higher education come to fruition,” he said.

Morrison said money coming from the federal government is typically a bipartisan issue because it helps public policy leaders, and they “appreciate that.” But he was quick to say leaders aren’t relying on the stimulus package.

“Just like IU, I think they’re hopeful that it might exist,” Morrison said. “But I don’t think anybody’s relying on it to a point of saying we can count on that money from Washington because it’s just too early. You don’t count on it.”

IU spokesman Larry MacIntyre said the stimulus package could provide extra money for states to use for construction projects, adding that IU has projects ready.

“Some of the state funds allocated for building at IU have been delayed,” MacIntyre said. “We would certainly be happy if we were to qualify for some construction funds in the stimulus bill.”

Yet those like John Mikesell, professor of public finance and policy analysis in the School of Public and Environmental Affairs, said IU and other state schools need to wait in line and not depend on the stimulus.

“When President Obama submits his budget, it doesn’t bring any money at all to anybody. It’s simply his ideas,” Mikesell said. “And it has to go through the process of appropriation. And that’s a slow process.”

Mikesell, who is part of the team of forecasters for the Indiana budget each year, said Indiana is actually better off than many other states. Higher education is one of the first things to get cut because there is more money there in the first place, he said.

“If the state as a whole is going to take a hit to maintain a balanced budget, then when you’re doing your cuts you go to where the money is,” he said. “That means you go to higher education.”

Bauer said he couldn’t expect Indiana to get the money ahead of other states that are struggling more, adding the state needed to help itself before turning elsewhere.

“We are hopeful that it can be helpful, but so are 49 other states,” he said. “There’s a lot of people reaching out for that money.”