Indiana Institutions Use Student Technology Fees to Compensate for Budget Cuts
By DAN CARNEVALE
All of Indiana's public colleges and universities plan to raise student technology fees, officials say, to make up for cuts in the state budget that would have paid for computer equipment and technology programs.
None of the institutions have decided how much the technology fees will increase. Indiana's governor, Frank O'Bannon, a Democrat, has recommended that the colleges keep the fee increases below 10 percent of the institutions' current total fees.
Cuts in Indiana's state budget -- like those in states across the country -- are leaving colleges in a lurch to find money for technology programs. And student fees seem to be the only source of revenue left, says Mike Baumgartner, associate commissioner for facilities and financial affairs at the Indiana Commission for Higher Education. "Everybody that has [a technology fee] will be increasing it," he says. "And those who don't have one will get one."
Indiana is facing a $1.3-billion deficit in its $20.7-billion two-year budget. Governor O'Bannon has cut all of the $58-million that was meant to cover technology costs for colleges and universities this year and next. In addition, he has cut all of the $50-million set aside for the 21st Century Research and Technology Fund grants, which also were meant for state colleges and universities.
The governor is allowed to make emergency cuts to the budget without legislative approval. In all, Mr. O'Bannon has cut $233-million from state allocations for higher education. The Indiana General Assembly hopes to give back $95-million of that money in 2005, if the money is available.
In making cuts to help stave off the state budget deficit, technology spending was sacrificed in part to save money for general higher-education operating costs, Mr. Baumgartner says.
But with less money, institutions won't be able to replace old computers to keep up with the rapid growth of technology. "We're always concerned that the students won't be employable if they haven't used the most up-to-date technology," Mr. Baumgartner says.
Even increasing student fees won't be enough to recoup all the money institutions lost during budget cuts, says Martin Jischke, president of Purdue University at West Lafayette, because students can afford to pay only so much. "There's no way we will make up the difference," he says. "There still will be a shortfall."
Ball State University created a technology fee last year, when the budget cuts first got under way. With new cuts looming, the university may raise those fees, says O'Neal Smitherman, vice president for information technology.
But with tuition and fees continually going up across the country, Mr. Jischke says he's concerned that the price of going to college is rising too fast. The state isn't doing enough to support the increasing costs of higher education, leaving students to pick up the tab.
"The trend is toward students paying more," Mr. Jischke says. "I think that's true not only in Indiana, but across the country."
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