As the end of Gov. Frank O'Bannon's special legislative session drew near Saturday, state senators made a decision that could ultimately benefit Ball State.
The legislators passed a bill that could provide the university with $3 million in funding for technology improvements and building restoration. The bill now goes before O'Bannon.
If the governor decides to sign the bill, it will replace some of the money lost in his recent budget cuts. Specifically, $30 million will be distributed to higher education programs across the state.
Thomas Morrison, vice president of the Office of Business Affairs, said the new bill is key to Ball State's financial situation.
"(This bill) will restore some of the funding that has been cut by the governor," Morrison said.
Because of O'Bannon's cuts, Ball State lost around $26 million in funding, Morrison said. About one seventh of the cuts will be restored, he said.
The bill is designed to restructure the state's tax system. It will raise sales taxes from 5 percent to 6 percent and the gasoline tax from 15 cents to 18 cents. Cigarette taxes will go up by 40 cents to 55.5 cents per pack.
While higher taxes will be attached to those items, substantial cuts will be made to property taxes. This is partly due to shifting 60 percent of school operating costs to the state. A 13-percent average increase in property taxes for homeowners expected under reassessment will be negated, and average bills will be cut another 13 percent.
The bill will also eliminate the business inventory tax in five years. Counties will be able to recover this revenue loss through local option income taxes. The corporate gross income tax will also be eliminated by the bill.
"This is a really historic day for school children, homeowners, workers and businesses," O'Bannon said. "I think what's now been done is one of the most monumental legislative packages I've seen in my 30 years, and it's going to make a great difference in the future of the state of Indiana." The Associated Press contributed to this article.
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