President’s Retreat 2011 Government Relations Update Mike Sample Doug Wasitis Jeff Linder

1. President’s Retreat 2011 Government Relations Update Mike Sample Doug Wasitis Jeff Linder

2. The Political Landscape • Typical Rebound in Economic Growth Not Happening • Unemployment Remains Stubbornly High • Public & Private Institutions Seeking to Safely De-Lever; Public Fear of Debt/Deficits Grows • Perception That Government May Be Running Out of Policy Options • Increasing potential for a double dip recession

3. Growing Ideological Division in the Country • Diminishing number of moderates • Increasing number of self-identified conservatives • Stable level of self-identified liberals over the last decade • Trend among independents since 2009 moving more conservative • Disproportionate power on the political fringes of both parties

4. Implications • Political • Divided government will remain in Washington at least through the end of 2012— Consensus and compromise will likely remain elusive •New resources for higher education from any level of government will be unlikely during this period •Maintaining existing government resources will be a challenge in the face of expected budget cuts •Republicans will continue to control all of state government at least through the end of 2012 – conservative agenda will dominate the legislature

5. Implications • For Indiana University • Level of research dollars could be threatened •Potential for changes in performance funding model •Federal earmarks unlikely to return any time soon •Potential for student loan reductions and greater reliance on institutional aid to replace it •Potential for more state control, even in the face of significantly DECREASING state support

6. Strategy for 2012 I QUIT!

7. Serious Strategy for 2012 1. More aggressively promote the economic value to the state of 4-year degrees and the need to support the institutions providing them 2. Develop stronger relationships with individual ICHE members and communicate directly with them 3. Establish and maintain strong relations with federal agency officials 4. Establish strong relations with relatively new Indiana Congressional Delegation 5. Promote selective issues in Congress such as restoration of Title VI funding and maintaining adequate funding levels for NIH, NSF etc.

8. Serious Strategy for 2012 6. Develop and promote an “IU Plan” for performance incentives, possibly including a suggested plan for a structure of higher education in Indiana University 7. Seek greater autonomy from state government as state support diminishes 8. Aggressively defend against potential attacks on the authority of Trustees and administrators 9. Establish strong relationships with Gubernatorial candidates

9. Responding to the Challenge-Higher Education Community • Educate the bipartisan committee, the public and everyone else • Why science is important • Medicare support for graduate medical education • Revisit Federal Priorities • Everything is not an option • Protecting the core of programs like Title VI

10. Responding to the Challenge-Indiana University • Recognize the Increased power of agency officials • Grow partnerships with industry