Ball State University President Geoffrey Mearns told the Indiana Commission for Higher Education on Thursday that its plan to restore performance funding for the state’s seven public colleges and universities is premature. The commission is preparing to present a simpler version of the performance funding formula to the State Budget Committee next month, aiming to restore it in the state’s upcoming two-year budget.
Outcomes-based performance funding represents a small portion of Indiana’s higher education budget. It uses a formula to reward colleges for positive outcomes, such as on-time degree completion. This funding was zeroed out in the last budget due to a dire financial forecast that later proved to be false. The previous two-year budget cut higher education funding by approximately 6% from fiscal year 2025.
Now, with state reserves projected to reach $5.2 billion by next July, the commission’s new formula prioritizes affordability, accessibility, on-time degree completion, and alignment with industry needs. However, Mearns questioned whether there is enough time to effectively persuade lawmakers. He noted that legislators may not be aware that appropriations to Ball State are roughly the same today as they were 20 years ago, or that tuition has not outpaced inflation. Mearns also stated that Indiana ranks 46th in the nation for higher education funding, suggesting it should be a higher priority. He advised that keeping requests simple would improve the chances of increasing investment in higher education.
Thursday’s meeting served as a practice round for college presidents, allowing them to present capital project and line item requests they intend to bring before the State Budget Committee for the next budget. The current fiscal year budget allocated no money for construction projects. Commissioner Teresa Jenner, anticipating a "very, very tough session," shared feedback during the meeting. Discussions between Jenner and university presidents often circled back to outcomes as a way to counter the narrative that a college degree is not worth pursuing, emphasizing that it is an investment with beneficial outcomes for Hoosier students.
University presidents highlighted several positive outcomes in their presentations. They boasted about tuition freezes, improvements in on-time degree completion, collaborations with industry, and the retention of graduates who continue to live in Indiana. All of Indiana’s public colleges and universities have agreed to freeze tuition for a second consecutive year in 2026.
Purdue University President Mitch Daniels noted that tuition rates at Purdue have remained unchanged since 2012, a policy he said has saved families a collective $2.5 billion over 14 years. He also reported that 67% of Purdue students graduate debt-free, with in-state tuition still below $10,000. Purdue offers 59 majors that can be completed in three years for students wishing to graduate early.
Ivy Tech Community College offers the cheapest tuition in the state at $5,154 a year. President Martin Pollio explained that the community college system has introduced summer flex credits and transparent textbook pricing to keep costs low for students. He stated that 88% of Ivy Tech students leave with no college debt, adding that this prevents them from being set up for a "life of failure" due to crippling debt often seen across the nation for students without credentials.
Presidents also previewed significant capital project and line item requests for the upcoming budget. The University of Southern Indiana plans to seek $54 million for a new biomedical research laboratory and applied engineering center. Ball State is looking for an $88 million project to transform its library into a "21st Century learning commons." Ivy Tech President Martin Pollio intends to ask lawmakers for a new $13 million line item to cover deferred maintenance for roofs, HVAC, electrical, and plumbing systems, while the college itself will invest $98 million. Ivy Tech is also seeking $84.5 million to replace outdated facilities on its Terre Haute campus, and an additional $78 million for its Evansville campus. Purdue University President Mitch Daniels plans to request $100 million in capital project funds for a proposed 13-floor health science and engineering hub, which would include offices, classrooms, wellness facilities, retail, dining, and student housing. Indiana University will ask for $663 million in capital projects and a new $1.3 million line item to support its entrepreneurial lab, which will be matched by the university.
