TERRE HAUTE — Indiana State University’s operating appropriation would be reduced by about $4 million under Gov. Mitch Daniels’ proposed state budget, unveiled Thursday.
Under the governor’s proposal, ISU’s current state appropriation of about $71.5 million would be reduced to about $67 million for the 2012 fiscal year, said Diann McKee, ISU vice president for business affairs.
“It’s double what we expected,” McKee said.
The Indiana Commission for Higher Education budget proposal would have meant about a $1.9 million cut for ISU. The governor’s proposal means an additional $2 million cut, she said.
The Commission recommended a 6.1 percent across-the-board cut in operating budgets for all public institutions, with most of that — or 5 percent — used to fund a Performance Funding Formula.
“They add back whatever dollars the institutions generate from performance funding measures” that include such factors as degree attainment and credit hour completion, she said.
The governor’s budget recommends an additional 3 percent across-the-board cut for all institutions, she said.
State budget agency personnel contacted public colleges and universities Wednesday to let them know the governor’s budget included additional across-the-board cuts for higher education.
“We certainly wish it were different,” she said. But she emphasizes it’s early in the legislative budget process. “We won’t know with any surety until the end of April,” she said.
If ISU is cut $4 million in its operating appropriation, it would have to look at its programs and services and evaluate areas that could be cut, she said.
ISU’s top priority and funding focus will continue to be its core mission of educating students and helping them succeed, she said.
Asked whether additional layoffs might be necessary, she said, “It’s too early to speculate about that.”
Last year, ISU eliminated more than 100 positions in response to state budget cutbacks.
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