Higher Education in Indiana 1

The History, Structure, and Governance of Higher Education in Indiana

Deddeh F. Jones

Drexel University

EDHE 510

Dr. Michael Walker

December 4, 2008
 The great state of Indiana is known as “the Crossroads of America” for the simple fact

that more major highways intersect than in any other state. Symbolically, this state motto also

exemplifies the development of higher education in the northwest. Indiana specifically

represents a point in a changing shift from privately supported denominational institutions of

higher education to the modern day idea of the publicly funded ‘state-university’ model.

Subsequently, higher education in Indiana has come a long way from its early territorial years to

its present day, particularly in the evolution of its governance and funding structures. This paper

will aim to accomplish the following objectives: (1) establish a bird’s eye view of Indiana’s

history in higher education; (2) provide a historical overview its governance system; (3) discuss

three transformative state issues that have affected Indiana’s higher education; (4) present a

current overview of its higher education; (5) describe the state coordinating agency’s role,

structural organization, and membership; (6) provide a brief commentary on the relationship

between the state coordinating agency and individual public institutions of higher education; (7)

survey Indiana’s higher education budget and its funding origination; and (8) address three

contemporary higher education issues currently facing Indiana that perhaps may shed light on its

future path.

History

Like many frontiers of the New World, Indiana was an untamed wildness originally

inhabited by the Native Americans. It was not until the late mid-seventeenth century when the

first early Europeans settlers declared the territory for the Kingdom of France. The French in

turn maintained dominance over the region until the British won the French and Indian War

ending in 1763. This consequently led to British rule over the region known as the Northwest

Territory (which included the areas of the modern states of Ohio, Illinois, Michigan and
Wisconsin as well as the northeastern section of Minnesota). However, due to the defeat of the

British in the American Revolutionary War in 1783, the region under the Ordinance of 1787

ceded to the United States. At the conclusion of much debate, Indiana became its own separate

territory in 1800 and ultimately achieved its statehood in 1816 (Woodburn, 1891).

The Ordinance of 1787 not only provided the blueprint for the government of the

Northwest Territory; it also is one of the earliest legislative documents to date recognizing the

importance of the advancement of education. Article III of the Ordinance explicitly states that in

order to have a “good government and the happiness of mankind, schools and the means of

education shall forever be encouraged.” It is this guarantee that “became the basis and

inspiration of the educational life” (Woodburn, 1891, p. 27) in Indiana. In harmony with the

spirit of the Ordinance, Indiana’s first state Constitution of 1816 embodied the notion of

providing for “a general system of education . . . ascending in regular graduation from the

township schools to a State University, wherein tuition shall be gratis and equally open to all”

(Brubacher & Rudy, 2007, p. 154). This provision according to Cotton (1934) outlined a well

developed system of education, but failed to take root due to the lack of succeeding legislatures

to enacted further laws with “teeth for their enforcement” (p. 15). Moreover, the average

Hoosier during these early frontier years had paradoxically given little contemplation or even

deference to higher education. Mainly because, these settlers were of modest means if not poor,

ignorant, unaspiring, and unchanging migrants of the old south who toiled in their fields

enduring insurmountable hardships of their new environment (Woodburn, 1891).

As unflattering as this depiction may be, it would take the enactment of second

Constitution of 1851 for the state government to establish a public school system. By this time,

Indiana was home to a plethora of religiously affiliated institutions of higher education which
typically were available to the elite. When the Morrill Land-Grant Act of 1862 was signed by

President Lincoln, access to higher education for the masses particularly those in rural

communities was transformed and expanded. The Act mandated that proceeds from specified

public land sales would be used to finance public institutions specializing in agricultural industry

and mechanic arts. Soon thereafter the American Civil War, Indiana’s college enrollment began

to boom, sustaining the growth of the approximately 40 colleges, universities, and seminaries in

existence today (Blake, 1963).

Indiana’s earliest educational institutions were missions and seminaries, established by

French Jesuit priests as well as by a series of denominational churches to convert the local Native

American population (History of Indiana, n.d). Despite this tradition, the first General Assembly

of the Indiana territory sought to designate a university for public education commencing with

the founding of the Jefferson Academy in 1801, which was later incorporated as Vincennes

University in 1806. Vincennes made its debut as one of the first public two year universities in

the state of Indiana as well as on the national scene. Ironically, further development of public

junior colleges did not take root in the state until the mid-twentieth century with the founding of

the Ivy Tech State College later reorganized as Ivy Tech Community College (ITCC) in 1963.

In 1828, the Indiana legislature again met to formally authorize the establishment of

Indiana University in Bloomington (IU), the state’s first public four year university. Then came

Purdue University, a product of the Morrill Land-Grant Act of 1862 founded in 1869 and

currently operates four regional campuses. Together through a collaborative effort and

partnership, IU and Purdue have combined resources to create the Indiana University-Purdue

University Indianapolis (IUPUI), a campus centrally located in the heart of Indianapolis

dedicated to urban research and academic health sciences.

 In addition to these public institutions of higher education, many private colleges and

universities in Indiana were established with religious affiliations. Most notable are the

University of Notre Dame (1844) with its Roman Catholic heritage founded by the Jesuits,

DePauw University (1837) with its Methodist affiliation, and Valparaiso University (1859) with

its Lutheran roots. Notre Dame is nationally and internationally known for its excellent

academic reputation and is ranked 18th in top universities in the country by the U.S. News World

Report. DePauw University houses Indiana's first Phi Beta Kappa chapter (the nation's oldest

and most widely known academic Honor Society) and established the first 10-watt college FM

radio station in the country, WGRE-FM, which went on the air in 1949 (DePauw History and

Traditions, n.d.). Valparaiso is hailed as on the first co-educational universities in Indiana and it

comprises one of the two private law schools in the state.

History of Governance

Indiana’s higher education governance system began its evolutionary development with

the creation of local individualized boards of trustees which were largely made up of prominent

citizens of influence. With respect to private post-secondary institutions, these entities were for

the most part highly decentralized, autonomous and self-perpetuating. As for public institutions,

their boards of trustees were quintessentially accountable to the state government due to

constitutional stipulation and financial dependency in form of state appropriations. In response

to the endemic budgetary challenges and systemic accretion of the public higher education

system, the state’s coordinating agency evolved through a series of commissions reporting on

Indiana’s higher education progression.

Beginning in 1945 the coordinating agency later known as Indiana Commission for

Higher Education (ICHE) was first conceived as an advisory group comprised of representatives
appointed by the governor who would oversee the general policies and procedures affecting

higher education (Metz & Gosetti, 1999). According to Wells (1980), the Conference’s main

objective was to assist the state government in facilitating the proliferation of new units, taking

into account the offerings of well established private colleges in the state and the branches of

other state institutions (p.136). This policy goal would naturally provide balance and foster a

solid foundation for managing the emerging post-World War II higher education institutional

expansion predicated by the G.I. bill of 1944.

By the 1960s, there were two commissions and one committee established by the General

Assembly and a Legislative Council. The purpose of these entities was to re-evaluate Indiana’s

higher education system in the wake of the nascent vocational movement where in the first

statewide comprehensive community college system was finally realized (Metz & Gosetti,

1999). In 1971, Indiana General Assembly enacted Senate Enrolled Act No. 2 creating a

Commission for Higher Education of the State of Indiana. The ICHE functions as the state level

statutory coordinating agency for all post-secondary education in the state. The commission

consists of a fourteen-member public body appointed by the governor and is responsible for the

long term strategic planning, budgetary approval and review, clarification of institutional roles,

and the approval of all new campuses and academic programs (Landini, 1997). During the

1980s and 1990s, the commission has fortified its efforts to keep up with the pulse of the shifting

demands of its higher education system through policy initiatives that have improved articulation

agreements, distance education programming, and conservative public funding

recommendations.
 Transformative State Issues

As acknowledged previously, Indiana’s citizenry since its pioneer days have consistently

demonstrated their lack of support for public funding for the state’s higher education institutions.

Principally because there was a general unwillingness on the part of these hard-working Hoosiers

to be taxed for financing higher education which in their eyes seemed out of touch with their

vital interests (Brubacher, 2007). In fact, state appropriations for higher learning tended to be

looked upon with suspicion as helping to build up the aristocracy (Brubacher, 2007). It was no

wonder that Indiana’s state universities were little more than colleges, with relatively miniscule

endowments, inadequate staffing and resources, and with few professional schools. Hence, the

need for perpetual tuition hikes.

Since the 1980s, these tuition increases have been climbing and unfortunately have been

entrenched in supplying state colleges and universities with the much needed capital to operate

their facilities in lieu of declining state appropriations. Over the past decade or so, there has

been a significant shift in the perception of higher education; more and more Hoosiers are

recognizing the necessity of obtaining a college degree (Jones, 2003). No longer are good

paying jobs in manufacturing and the agricultural sectors viable options of employment. As a

result, enrollment has risen to 61 percent in 2000 from 38 percent in 1986 (Jones, 2003).

Due to this incredible growth, the General Assembly has alleviated some of the financial

burden by establishing the Twenty-First Century Scholars Program in 1990. This innovative

early intervention program enrolls middle school aged students from grades six through eight,

asks them to sign a pledge to complete high school and avoid illegal activities, and provides

them with academic support and assistance throughout high school (Erisman, W. & Del Rios, M.,

2008). After graduation and affirming compliance, participants are guaranteed four years of
financial aid covering 100 percent of their tuition costs at any in-state public or private post-

secondary institution in Indiana. The rationale behind this program is that if funding for college

education is no longer a barrier to access, students will be more motivated to prepare themselves

for higher learning, and thus remain engaged. Sadly, this was not the case; less than half of those

who successfully participated met the requirements to attend college which leads us to the

evaluation of the next transformative issue shaping Indiana’s higher education: college

preparation (Erisman, W. & Del Rios, M., 2008).

Great strides have been made in better preparing Indiana’s high school graduates for the

rigors of post-secondary education. However, the state’s public school system continues to

struggle with this issue until reform of its high school curriculum was implemented in 2005.

Prior to this reform, Indiana received an average grade of C regarding college preparation from

the Measuring Up 2006 higher education report card. According to ICHE data, 26 percent of

high school students who pursued a post-secondary education were enrolled in at least one

remedial course as of 2004 (Gwaltney, 2008). To combat this reality, the state legislature devised

what is known as Core 40 high school curriculum requirements.

The Core 40 diploma entails requiring high school students to take up to a minimum of

40 credits covering the completion of four years of English, three years of math, and three years

of science in order to graduate (Erisman, W. & Del Rios, M., 2008). At first, the Core 40

diploma requirements were optional for high school students in 1994. Because of resistance

from some K-12 educators who argued that Core 40 was inappropriate for those not wanting to

attend college, the requirements have since been revised and are now on schedule to become the

admissions standard for Indiana’s public four-year post-secondary institutions by 2011 (Erisman,

W. & Del Rios, M., 2008). This is significant since it will force the state’s community college
system to work even harder to accommodate those students who may slip through the cracks

needing remedial assistance.

As a result, the emergence of the statewide community college system, otherwise known

as Ivy Tech Community College (ITCC) will have an even more profound effect on increasing

access to and affordability of higher education in Indiana. Approximately 19,000 students have

enrolled in its system since its reorganization in 2000 (Jones, 2003). ITCC has ushered the state

of Indiana in alignment with the nation’s progressive systems of junior colleges. Currently, it is

nation’s only exclusively state-supported community college system, receiving its funding

directly from state appropriations and private foundations (Erisman, W. & Del Rios, M., 2008).

In the short few years, ITCC has transformed itself as feeder institution to the state’s other four

year colleges and universities, and serves as a low cost alternative for those wanting to obtain an

associate’s degree. As ITCC continues to grow and strengthen itself, its presence suggests a

transition to a highly structured and differentiate higher education system similar to that of

California, where junior colleges, baccalaureate institutions, and research driven institutions are

clearly distinguishable (Erisman, W. & Del Rios, M., 2008).

Status Quo

Higher education in Indiana has become a greater priority for many Hoosiers in

comparison to a decade ago. As it stands, the ebb and flow of the state’s manufacturing and

agricultural industry have been volatile causing the employment market to favor more highly

skilled labor. Accordingly, the state’s unique compilation of assorted higher education

institutions is becoming inundated by an influx of its citizenry desiring to improve the

livelihoods through education.

 Indiana’s post-secondary system currently consists of approximately 100 institutions

(Erisman, W. & Del Rios, M., 2008). Public universities include major research institutions such

as Indiana University at Bloomington and Purdue University at West Lafayette, as well as the

single campus institutions of Ball State University, Indiana State University, Vincennes

University, and the University of Southern Indiana. As recent as 2000, the state’s community

college system, known as ITCC, was launched and now has 23 campuses. Also, the state is

home to another 40 or so private, nonprofit colleges and universities, including the renowned

University of Notre Dame, and 26 for-profit, primarily two-year postsecondary institutions

(Erisman, W. & Del Rios, M., 2008). Public colleges and universities in the state enrolled just

about 275,000 students in 2006 and 2007 along with independent colleges and universities

accumulating another 81,000 students (Erisman, W. & Del Rios, M., 2008).

The state’s institutions of higher education grant four types of associate degrees: the

Associate of Arts (A.A.), the Associates of Science (A.S.), and the Associate of Applied Science

(A.A.S.). With exception of the later degree which can be found by and large at ITCC, the other

associates degrees are conferred by a combination of the nine state’s four-year campuses and

fourteen of the private universities within Indiana (Metz & Gosetti, 1999). In addition, five state

four-year institutions grant the associates degree as well as the bachelors, masters, professional,

and doctoral degrees (Metz & Gosetti, 1999). As for professional degrees, there are only four

American Bar Association accredited law schools and just one official school of medicine and

dentistry in Indiana.

Generally speaking, the health of higher education in any given state is sometimes

measured by its enrollment trends and high school graduation rates. Indiana has made

considerable progress over the past two decades in these areas. Such progress can be attributed
to a change in perception as formerly discussed. In addition, it is undergoing an economic

metamorphosis due to the decline in manufacturing employment---for gone are the days when a

college degree was not needed to support a middle class standard of living. Since 1992, the

percentage of high school graduates enrolled in college has steadily increased only to surpass the

national average. More specifically, in 2006, 62 percent of Indiana’s student population

completed a college preparatory curriculum in high school in contrast to a merger 12 percent in

1994 (Erisman, W. & Del Rios, M., 2008). What is more astonishing is that adult learners are

pushing enrollment figures upward from the establishment of the ITCC system. Furthermore,

the state’s population is on target to grow by 6percent between 2005 and 2020 producing a

projected increase of 22 percent in the number of high school graduates (The National Center for

Public Policy and Higher Education, 2006). This is just a prelude to the work at hand that

Indiana’s higher education system will have to confront as economic conditions continue to alter

the employment market.

Contemporary Governance

Today’s higher education governance system is somewhat decentralized. Yet, most

changes to its system are made through the General Assembly---meaning that independent

institutions of higher education remain for the most part autonomous and self-governing whereas

public institutions of higher education are held accountable to the state government. This

dichotic scheme makes the Indiana model of higher education very complex, diverse, and

independent system.

The ICHE is the leading coordinating agency which has statutory authorization to do the

following: define the educational missions of public colleges and universities; plan and

coordinate Indiana’s state-supported system of postsecondary education; review budget requests

from public institutions and the State Student Assistance Commission; and approve or

disapprove for public institutions the establishment of new programs or expansion of campuses

(ICHE, n.d.). Over the last decade, the commission has become more activist in nature spear

heading policy changes to increase college access, readiness, and success for Hoosiers.

Seven distinct governing boards exist for public higher education in Indiana. Five of

these boards govern the major state universities: Purdue University, Indiana University, Indiana

State University, Ball State University, and the University of Southern Indiana. An independent,

local community college board governs Vincennes University while yet another board governs

Ivy Tech. Indiana's private colleges and universities naturally belong to the Independent

Colleges of Indiana Association, a professional organization that has a representative who sits on

ICHE governing board. Out of the fourteen members of the ICHE, the Governor appoints

twelve, nine representing each of the state’s congressional districts and three at-large members

for a term of four years which may be renewed (ICHE, n.d.). In 1990, the legislature added a

student and a faculty representative who are appointed by the Governor for terms of two years in

an effort to create greater participation.

Governance Relationships

The ICHE is a regulatory entity by virtue and does not govern any particular higher

education institution per se. By law, the commission has no power or authority involving any

managerial or operational aspect of Indiana’s public or private colleges and universities. Said

institutions retain these responsibilities and are usually governed by their board of trustees. The

ICHE does cultivate working relationships with the various colleges and universities as well as

other auxiliary state agencies by providing constant substantive assistance and education

regarding its policy objectives. It also facilitates the cooperation between the state government
and the public institutions of higher education by acting as a buffer for both sides in establishing

common ground.

Budgetary Funding

Under the Constitution of 1851, the Indiana General Assembly was given the power and

authority to enact laws affecting the organization and financing of the public education system.

It is the state legislature that approves funding to public institutions of higher education in

Indiana. This funding for higher education is basically derived from state appropriations. The

ICHE submits suggested budgetary recommendations to the state legislature on behalf of state

colleges and universities. The total state appropriations for higher education increased $97.2

million for FY 2008 over the appropriations in FY 2007, and an additional $89.6 million for FY

2009 over appropriations for FY 2008 (Ruhl, n.d.). This is striking because these appropriations

are rising despite budget shortfalls especially during the current recession.

Three Critical Pressure Points

There are three critical areas of contention concerning Indiana higher education in

relation to (1) access and affordability, (2) college preparation, and (3) the brain drain. In recent

years, Indiana’s economy has continued to depend highly on manufacturing, an industry that is

rapidly changing. Manufacturing companies are making productivity gains by generating more

with fewer employees; therefore creating a growing demand for more highly skilled workers

(Report of the Subcommittee on Higher Education, 2004). Such a demand has fostered a greater

need for a knowledge-based economy. In fact, Indiana is experiencing an unmet skill shortage of

nurses and teachers (Report of the Subcommittee on Higher Education, 2004). As a result, a

great debate has ensued concerning the manner in which policymakers i.e. ICHE should
approach these challenges in the wake of dwindling public financial support for higher education

in the state.

Access and affordability go hand in hand. Without adequate financial resources to afford

college tuition, access to obtain a post-secondary education is virtually impossible for many

individuals. Although financial aid and family incomes have increased over the past decade, cost

of attending college has jumped nearly three times the rate of inflation (ICHE, 2003). In the

Measuring Up 2006 higher education report card, Indiana received a grade of F in affordability,

largely because the cost of attending college in the state, even after the application of financial

aid, represented a considerable share of family income for the state’s poorest families (p.8).

Therefore, students from these families would be unable to attend college in Indiana without

relying heavily on student loans or working while enrolled in school (Erisman, W. & Del Rios,

M., 2008).

In reaction, lawmakers have begun to discuss ideas to remedy the situation with such

suggestions as restructuring taxes to curb the rising tuition costs. Some have proposed to raise

Indiana’s cigarette tax in order to generate more revenue for supporting its state’s institutions of

higher education. Another recommendation suggested tuition caps. Several bills to restrict

tuition increases were introduced in the General Assembly; however, none have yet passed, in

part because of concerns about limiting the funding available to the state’s higher education

institutions in an era of rigid state budgets (Erisman, W. & Del Rios, M., 2008). So far without

any real consensus on a solution, access and affordability will continue to plague higher learning

in Indiana as well as across the nation.

Beyond having access and being able to afford a higher education, potential college

students must be sufficiently prepared in order to obtain success while working towards their
degree. Indiana has had difficulty in this area due to the generational perception embedded in the

psyche of its citizenry. Hoosiers have been content for decades with a basic education because

of its heavy reliance on manufacturing. Since the manufacturing industry has weakened, there is

now a need to seek higher education to compete in the global economy. ITCC has compensated

for the inadequate college preparation by expanding its remediation programming for both its

tradition and adult student population.

After completing a post-secondary degree, many graduates are having a tough time

acquiring employment that meets their educational needs and therefore are leaving the state

otherwise known as the brain drain. Indiana is still experiencing the growing pains for having to

expand its economy to accommodate the increasing demand for highly skilled workers.

Moreover, Indiana does not fair well when comparing to other states in terms of the educational

attainment of its populace (ICHE, 2003). There is now a drive to attract businesses that will

support the ever-growing trend of attaining a higher education.

In summation, a lot can be said about the development of Indiana’s higher education,

nevertheless, there appears to be three reigning themes that continually stimulates its future

progression: (1) the challenges posed to funding its operations and sequestering financial

assistance for its low-income students; (2) the improvement of academic preparation of its

citizenry who have traditionally opted out of pursuing higher education; (3) Indiana’s fledging

dependency on its manufacturing industry. These challenges will have to be met with urgency

in order for Indiana to stay competitive and enhance its prosperity.


State Profiles - Postsecondary Governance Structures Database
PS Governance
State-Level Coordinating and/or Established in 1971, the Commission of Higher Education functions as the
Governing Agency
System/Institutional Governing
Boards
State Student Assistance and
Loan Agencies
Postsecondary Vocational-
Technical Education
State-Level Organization of
Independent (Not for Profit)
Colleges and Universities
Licensure/Approval Agencies
Other Statewide Postsecondary
Organizations
Appendix 1
Indiana : Postsecondary Governance Structures
statutory coordinating agency for postsecondary education in the state. The
commission has 14 members--12 are appointed by the governor for four-year
terms and represent the general public; one student and one faculty member serve
two-year terms. The commission is charged with six responsibilities by statute: (1)
long-range planning for postsecondary education in Indiana; (2) defining
institutional roles; (3) approving new campuses or extension sites; (4) approving
new program requests; (5) reviewing existing programs; (6) reviewing budget
requests and recommending consolidated requests to the executive and legislative
branches of state government. Indiana does not have an office of secretary of
education and the coordinating agency is not a cabinet department. The executive
officer of the commission is appointed by the commission and serves at its
pleasure.
Indiana has eight public institutional governing boards: (1) Ball State University
Board of Trustees; (2) Indiana State University Board of Trustees; (3) Ivy Tech
State College Board of Trustees with authority over 22 campuses and centers and
the newly created Community College of Indiana in partnership with Vincennes
University; (4) Indiana University Board of Trustees with authority over seven
campuses; (5) IUPU Ft. Wayne campus administered by Purdue University
maintains dual program responsibilities, with some academic units answerable to
Purdue and others to Indiana University; (6) Purdue University Board of Trustees
responsible for four campuses; (7) Vincennes University Board of Trustees with
jurisdiction over the newly created Community College of Indiana in partnership
with Ivy Tech State College; and (8) University of Southern Indiana Board of
Trustees.
The State Student Assistance Commission of Indiana serves as the state student
assistance agency.
The Commission on Vocational and Technical Education is the State Board for
Vocational Education. The commission consists of 11 citizens who are appointed
to four-year terms by the governor. Each of 10 congressional districts is
represented by a member; the remaining member represents the state at-large.
The Independent Colleges of Indiana represents 32 private colleges and
universities within the state. The Association of Private Schools is a similar
organization representing the private trade, business and technical schools in
Indiana.
The Indiana Commission on Proprietary Education functions as the statutory
licensing and approval authority for proprietary institutions.
The Indiana Conference of Higher Education represents both the public and
private colleges and universities and is a voluntary organization dedicated to the
betterment of overall postsecondary education.
 Statutory Advisory Committee None.

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