State losses might hit BSU

Last time state cut university's budget, technology fee increased

Students have about 120 million reasons to wonder if Ball Statewill see more budget cuts next year, a fate that could lead tohigher tuition and more fees.

Officials say it is still to early to tell if Ball State'sbudget will be trimmed, but so far, the state is worse offfinancially than it was in 2001.

In October of that year, the state's income fell short by about$35 million, about $120 million less than this year.

This year, as of October, the state was still needing about $152million in income.

The last time the state didn't get all the money it hoped for,Ball State suffered. Former Gov. Frank O'Bannon cut millions fromthe university's budget and indirectly placed the load on thestudents through the technology fee, the $1,000 new-student fee andmore.

Whether or not Ball State will face a similar fate in 2004depends on if the state starts receiving all the money itoriginally budgeted.

"Frankly, if the revenue doesn't pick up, then (the state) willlook more and more at cuts," Jeff Linder, Ball State's associatevice president, governmental relations, said. "I think everybody isconcerned. I suppose 'worried' is not an unreasonable term touse."

Though legislators convened for the first time Tuesday todiscuss how to ease property taxes, the budget was on everyone'smind, Sen. Allie Craycraft, D-Selma, said.

They will probably wait until the short session begins inJanuary to take action -- if they take any action at all.

Craycraft said legislators would need a "crisis" to re-examinethe state's two-year budget, and he said he doesn't expect them topass any bills to raise more money.

Craycraft's colleagues in the House also want to avoid changingthe budget, Linder said.

If the General Assembly does not act, and revenue does not pickup, the governor and other administrators will have to act, andthey would have to do so with an axe, according to Berni Hannon,the assistant director for higher education in the State BudgetAgency.

For now, however, Hannon said everyone in the capital buildingis in "watch and see" mode.

Linder said the limited growth in the state's income ispartially offset by increased federal aid for Medicare.

"That has a made a bit of a difference," Linder said.

Economics Professor Cecil Bohanon said the economy is improving,which is good news for the state.

On the other hand, Bohanon said, the state has depleted itsreserves to help satiate previous deficits.

"There's no way to get out of it," Bohanon said.

Ball State receives almost all of its funding from two sources:the state and tuition. When one holds back, the other has to pickup, Tom Morrison, director of state fiscal relations, has said.


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