Special State Report - 2015 House Biennial Budget

Summary of House Biennial Budget – HB 1001

Introduction

The Committee Chairman, Tim Brown, introduced his amendment to the biennial budget bill, HB 1001 on Tuesday, February 17, which was adopted by a bi-partisan vote.  On the floor of the House on February 23, nine amendments were considered on 2nd reading but none were adopted.  The bill passed the House on February 24 by a 68-29 vote and is now awaiting action in the Senate during the second half of the legislative session.

Operating Appropriations

  • The House budget decreases the level of performance funding from the current 6% of total university operating appropriations to 4.7% in FY 2016 but increases the level to 7% in FY 2017.
  • To fund the performance funding pool, the bill reallocates 3.1% of the university operating appropriation base in FY 2016 and 3.7% in FY 2017. 
  • The amount of new state dollars above the FY 2015 appropriation base is increased by 1.7% in FY 2016 and 3.5% in FY 2017.
  • For the IU system, operating funds would increase over the FY 2015 appropriation level by 3.1% in FY 2016 and by 5.6% in FY 2017. 
  • The Schools of Medicine and Dentistry, not included in the performance funding formula, received an increase of 1.9% in FY 2016 over the FY 2015 base and by 3.8% in FY 2017
  • Neither of IU’s new line item requests for statewide engagement in information technology or for regional campus student success initiatives were funded.  However, as requested by IU, the House budget transfers the existing $2.5 million per year in funding from the Indiana Economic Development Corporation to IU for the Clinical and Translational Science Institute.
  • Most existing line items were increased by 2.5% in the first year of the biennium (I-Light was reduced by 3% and dual credit funding increased significantly because of higher credit hour enrollment at IU).  

Capital Projects

  • Bonding authorization is authorized for the following two projects:
  • IUB Old Crescent Renovation-Phase II                                 $48.5 million
  • Evansville Academic Health Science Building                     $36.0 million (fee replacement limited to $32.0 million)
  • State R&R is appropriated at $24.7 million for the biennium.

 Other Provisions

  • The bill includes first-time funding of $3 million annually for an expansion of graduate medical education (residency) slots that was sought by the IU School of Medicine
  • The bill also updates the names of the Centers for Medical Education consistent with SB 123 and rolls the existing $3 million annual appropriation for the expansion of the Centers into the appropriation base for each Center, as requested by IU.
  • The bill includes language permitting state educational institutions to “opt-out” of use of the State Board of Accounts for annual audits if desired.

Next Steps

Beginning in March, the bill will be considered by the Senate Appropriations Committee, which will produce its version of the bill by late March or early April.  Following an update to the state revenue forecast in mid-April, conference committee negotiations will lead to a final vote on the budget in the waning days of the legislative session, which must end by April 29. 

JGrew/Legislative/Biennial Budget/Summary of House Budget