Members of the Commission for Higher Education met in Hammond on Thursday for several hours to detail new laws and review the changing landscape for higher education institutions, notably slimmed-down budgets, more state oversight and shifting criteria for certain scholarships.
Like most portions of the two-year budget, state funding for higher education took a 5% hit in the final days, triggered by a grim forecast that predicted $2 billion less in revenues over the next biennium.
Two scholarship programs stayed flat, which Brooke Kile described as a “huge win” for commissioners. Both the 21st Century Scholars program and the Frank O’Bannon Grants aim to make college more accessible for Hoosier students.
“It’s a win for higher education; it’s a win for Hoosier businesses that need talent,” said Kile, CHE’s senior associate commissioner for business solutions.
However, unused dollars allocated to the Frank O’Bannon fund can now revert back to the general fund, a change from previous years. CHE will be permitted to transfer that money to other programs.
“What we were spending was … $130 million a year out of a roughly $168 million appropriation. With this new ability that we received starting the next fiscal year, we are allowed to spend up to the full appropriation,” said Chris Lowery, the state’s commissioner for higher education. “That is significant, additional help for low-income students.”
In addition to the 5% reduction for some other scholarship programs, CHE’s budget line and individual allocations to each public institution were reduced along with restoration and rehabilitation funding.
Also tucked into the budget was language abolishing the Governor’s Workforce Cabinet, an initiative touted by former Gov. Eric Holcomb. Instead, the higher education body will take up many of those duties and align the state’s educational goals with business needs.
Other legislative impacts
Though the state’s educational institutions will be exempt from new contracting rules advanced as part of an accountability and transparency measure, CHE itself will have to operate under the requirements for documenting bids and federal funding.
Under a separate law, CHE will also be required to submit a report examining the utilization of physical facilities at state educational institutions, including an analysis of classroom spaces, laboratories and more.
One of the biggest changes to the operation of the state’s public institutions will be enhanced tenure reviews tied to “productivity.” Such scrutiny will include teaching loads, time spent on instruction and graduate student oversight, and the research produced by a faculty member.
State law now requires that if these criteria are not met, the faculty member “shall” be placed on probation and could be dismissed. Additionally, professors must publicly post their syllabi.
Schools will no longer be required to have diversity committees under Senate Enrolled Act 289, which also impacts certain scholarships geared toward supporting minority students. In an attempt to still reach those students, the legislation defined “underserved counties” to include Allen, Lake, Marion, St. Joseph and Vanderburgh. Certain students from those counties may still qualify for the minority scholarships.
Another new higher education law will require several state agencies to collaborate and create a public dashboard detailing secondary programs, such as career and technical education and adult high schools. Such reports must include information related to participation, costs, completion and employment outcomes for students.
As the author of Senate Enrolled Act 448, Terre Haute Republican Sen. Greg Goode highlighted the measure as one with bipartisan support during the 2025 session before the commission on Thursday. He described it as an effort to help universities focus on training the workforce for high-demand priorities such as life sciences, microelectronics, semiconductors and more.
“This is a way to help encourage and inspire department chairs, from my perspective, to grow our enrollment,” said Goode, who previously worked at Indiana State University.
The bill would also study whether the state should have minimum admission requirements for Hoosier students.
Following the recommendation of Gov. Mike Braun, commissioners have opted to direct schools to keep tuition and fees flat for the next fiscal year.
“I know that’s a real challenge for our institutions, and I’m very sensitive to that. But I think the most important thing is what we’ve been striving for through our whole agenda: increasing enrollment and getting more Hoosier students to go to college.”
This article is republished as part of a collaborative content-sharing agreement between Ball State Unified Media and Indiana Capital Chronicle, established to expand access to high-quality journalism and to better inform and serve the public through trusted, in-depth reporting.
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