The recession may cause more headaches for IU Southeast next year.
State sales projections are down 8 percent this year, which could cause rising costs for the university.
The state has already cut budget funding by 4 percent for this school year and the next, but, that difference was compensated with stimulus dollars the school received.
“Right now the budget shortfall has not affected IU Southeast, but it has the potential to,” James Bonsall, Student Government Association president, said.
During the summer, Indiana University announced it would raise tuition rates 4.6 percent to 4.8 percent among the various campuses for the ’09-10 and ’10-11 school years.
William Cochran, special assistant to the chancellor for development and public relations, said he does not believe the possible budget shortfall will affect students.
“I think tuition rates have gone up enough,” Cochran said. “I don’t think the budget shortfall will cause an increase.”
“A rebate plan has been put into action for some students,” Cochran said, referring to a plan that would possibly reimburse students with an above average GPA.
Indiana University developed a plan to financially award students who maintain a 3.0 GPA or higher during both semesters. Under this new plan, students on the two main campuses would be awarded with $200 and students on the regional campuses would be awarded $300.
When asked if the budget shortfall will affect upcoming IUS building development, Cochran said it probably wouldn’t.
“The new buildings are under a different financial plan,” Cochran said.
Cochran said the budget shortfall could possibly affect development of the new education building, but he doesn’t think it’s likely.
“In reality, building will not come into effect until the next budget in 2011,” Cochran said. “Because of the shortfall now, it has no direct affect on our building.”
Bonsall said he was unsure where the state budget cuts are going to come from and said they have to come from somewhere.
“Many social services have already been hit hard and have hardly anything left to cut. Entitlement programs like Medicaid is mandatory and cannot be cut, Bonsall said. “This leaves very few other options but cutting education. This not only includes higher education but also K-12 as well.”
Bonsall said nothing has been decided and Governor Daniels has a lot of tough decisions to make.
By MATTHEW CHINN
Staff Writer
mchinn@ius.edu