Expect more economic malaise, IU says

DJIA 14,076.2 +32.4 / S&P 500 1,556.4 +3.8 / NASDAQ 2,792 +4.6 Tonight: Clear and chilly. Low 48. Wednesday: Sun early, P.M. showers. High 64.
	Tuesday, October 9, 2007
	Expect more economic malaise, IU says A group of Indiana University economists who forecast the state's economy say they've become more pessimistic than they were in August, when they issued their most recent quarterly forecast. Woes in the nation's housing market will cut growth and incomes the rest of this year and possibly into 2008, said Bill Witte, one of the economists. "There will be some growth, but it certainly won't be very good," Witte said. "And that's the upside."   Princeton Review ranks IU business school high Indiana University's business school placed No. 1 in this year's Princeton Review of business schools based on best classroom experience. The core curriculum is frustrating, challenging and fun-all at the same time, students said, and the faculty teach well despite their backgrounds in research. The annual survey also pegged IU overall as 18th in the nation among peer institutions where "students (almost) never study" and as the No. 8 party school.
	Sallie Mae sues former investor group Sallie Mae said yesterday that it is suing the investor group that had offered to acquire the nation's largest student lender, in order to force it to go through with its original $25 billion deal or else pay a $900 million breakup fee. The buyers group has said student-loan legislation signed into law by President Bush last month and weaker economic conditions, made the $60-a-share price agreed upon in April unacceptable. Sallie Mae employs 2,300 workers in Fishers and another 500 in Muncie.   Bemis might lay off workers in Terre Haute Bemis Co. Inc., a Neenah, Wis.-based plastic packaging giant, may lay off workers at its plant in Terre Haute, according to The Tribune-Star. The company is sagging under slowing sales and high costs, a spokeswoman told the Terre Haute newspaper. Last week, Bemis said it would soon cut costs and "adjust staffing levels" to boost profits. The Terre Haute site employs about 1,000, although the spokeswoman wouldn't discuss specifics about potential layoffs. State trade missions heavily funded by utilities Most of the money spent by the not-for-profit arm of Indiana's economic development agency has paid for foreign trade missions that drum up customers for the utility companies who largely pay for its activities, a newspaper report said. Some state lawmakers are not comfortable with the arrangement and say the Indiana Economic Development Foundation's books must remain under public scrutiny, even though the money comes from private sources, The Journal Gazette in Fort Wayne reported.   Utility settles federal pollution lawsuit for $4.6B One of the nation's largest power generators has agreed to end a years-long federal lawsuit by paying $4.6 billion to reduce pollution that has eaten away at Northeast mountain ranges and national landmarks, the Associated Press has learned. The settlement requires American Electric Power, based in Columbus, Ohio, to reduce chemical emissions that cause acid rain by at least 69 percent over the next decade. Indiana Michigan Power, a unit of AEP based in Fort Wayne, serves 575,000 customers in Indiana and Michigan. It employs 2,600 in Indianapolis, Fort Wayne and Lansing, Mich.   Indianapolis firm rolls out lithium car battery Indianapolis-based EnerDel Inc. this morning unveiled at a news conference a "cool running" lithium-ion battery pack it has developed specifically for the U.S. hybrid electric vehicle market. EnerDel CEO Charles Gassenheimer said the company could grow to $450 million in annual revenue by producing 300,000 of the battery packs a year. "We know Detroit is very hungry for this product," he said.
	Citizens Gas predicts lower heating bills Citizens Gas says its residential natural gas customers could pay an average of $72 less this winter than last year. Utility officials say the 9-percent decrease for Marion County customers is caused primarily by lower wholesale natural gas prices. Citizens Gas primarily covers Indianapolis.   From IBJ staff and Associated Press-Compiled by Norm Heikens Vandals strike charter school A fire broke out overnight at Sense Charter School southeast of downtown at 1601 Barth Ave. The principal says someone threw a gas can through a window, with a lit match, setting it on fire. The school's sprinkler system used more than 1,000 gallons of water to put it out. School was out for fall break. Fox 59 will have more at 10 p.m.
	Council votes against Gray committee The Indianapolis City-County Council voted last night not to form a committee to investigate behavior by City-County Council President Monroe Gray. A recent investigation exposed Gray's two overlapping city jobs. His job as a fire department communicator pays him $83,000 a year. He also collects a salary as councilor, for some of the same responsibilities. The Council also voted to cut costs by eliminating take-home vehicles. Sherman closed for Super 70 work Sherman Drive will be closed at Interstate 70 for bridge work today through Sunday. State highway workers will close the right, east-bound lane of I-70 between Keystone and Sherman nightly at 6:30 p.m. State police also will set up rolling road blocks to slow traffic. Arts void filled by 'coach' Shannon Linker is organizing the Arts Council of Indianapolis to help artists market their work.   Benefits get test at Marsh Marsh Supermarkets Inc.'s decision to totally replace traditional health insurance with only a health reimbursement account has captured the attention of local employers and benefits consultants.   Players benched for new Pacers ads The Indiana Pacers are trying to woo back fans turned off by a string of player indiscretions with an ad campaign that features new head coach Jim O'Brien but not players.   Sign up today for IBJ's Health Care Life Sciences Weekly E-mail Alert. This weekly news-email is sent out every Wednesday morning to over 3,000 business professionals. The content will cover the business of health care, life sciences and related insurance and benefits news. Readers will find news about hospitals, medical practices and health care companies as well as updates of stories that first appear in Indianapolis Business Journal. Also included are industry stats and trends, people news, event news and news of public policy changes that affect the health care and life sciences industries. Sign up today for your free subscription.
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