Budget Notes
The State of Indiana is facing severe financial difficulties due to a decrease in tax revenue significantly below the forecast projections. As information becomes available, this page will be updated to keep the IUPUI community informed of the budget expectations for the current fiscal year and the next biennium.
8.6.09
Message from Chancellor Charles R. Bantz :
Dear Colleagues:
Let me extend my appreciation to all of you who have worked
tirelessly to serve the IUPUI community. Unfortunately, it will not be possible
to reward the exceptional performance of our faculty and staff this year with
salary increases. While this is
disappointing, there is every reason to remain optimistic about the future of
IUPUI because of the wealth of talent here who so effectively continue to move
our campus forward.
The operating funds we will receive from the state for
fiscal years 2010 and 2011 are equal to the 2009 budget. However, part of
these funds come from federal stimulus money. This means that at the end
of the biennium our campus will be looking at a 5.1% cut in state operating
funds. Budget restrictions are being put in place to prepare us for the
future. As this fiscal year begins, here are some further details from the
Office of the IU Vice President and Chief Financial Officer about the budget
restrictions being implemented for the coming biennium. The principles on which
the budget is based include:
·
Preserving and expanding academic core excellence
by providing resources to continue seeking out and hiring outstanding faculty
members.
·
Providing funding to continue building essential
infrastructure in accordance with the new master plans for IU Bloomington and
IUPUI.
·
Enabling IU to avoid layoffs and provide some
additional support for employees earning less than $30,000.
In order to achieve these goals, the 2009-10 budget
includes the following restrictions:
·
No base salary increases for either faculty or
staff with the following exceptions approved by the Chancellor, the Office of
the Vice President and Chief Financial Officer, and the Office of the President:
o
Newly tenured faculty
o
Faculty receiving promotion in rank or newly
named Distinguished Professor
o
Staff receiving upgrade in rank
o
Gender or racial equity increases recommended by
the chancellor, provost, or vice president and approved by University
Affirmative Action prior to July 1, 2009
o
Written agreements completed prior to May 15,
2009 that include salary increase for FY 2009-10
o
Employee salary increases mandated by Department
of Labor
o
Existing base salary data errors
·
A suspension of university policy permitting
bonus plans and payments by the campuses with the following three exceptions:
o
Bonus payments specified by provisions in an
employment contract or agreement (note that employment agreements are meant to
be an exception and require prior approval of general counsel)
o
Bonus payments defined in an official plan for
commissions based on achieving specific financial goals; such plans would have
been approved by Responsibility Center heads, the chancellor and the campus HR
office.
o
Campus-based long service or special merit awards
that are awarded by the chancellor as an annual or periodic campus-wide program;
long service awards are usually in the form of a service-recognition gift or
small lump-sum award.
·
The budget line for each newly vacated biweekly
and professional position from July 16 will be cut by 50%.
·
Each unit’s FY10 general fund travel budget will
be cut by 50%.
The budget also contains funding for the following strategic investments:
·
Funding for 129 additional faculty positions
university-wide that are necessary to keep pace with university enrollments as
well as continuing to expand the university’s research enterprises.
·
One-time supplemental payments of up to $500 will
be provided to eligible full-time staff employees with base salaries of less
than $30,000 only.
·
Providing adequate funding to pay increased
employee health care, energy, and casualty insurance costs and to ensure
essential maintenance and repair of IU facilities. IU will pay the healthcare
premium increase for all full-time employees, by freezing employee contributions
for 2010 at current rates for 2009.
·
Increasing the amount of money available for
student financial aid grants at IUPUI by about $1 million to ensure that we
continue to enroll the best students, regardless of their financial backgrounds.
Over the coming weeks we will be working with schools and
units to better understand the impact of these changes. These are
obviously difficult times and we are facing new and challenging issues.
But we are grateful that it has not been necessary to announce layoffs
and further cuts like many of our peers. Throughout this process we
endeavor to provide all staff, faculty, and students with as much information as
possible. Together we will work to
determine the best way to implement changes while keeping our focus on
maintaining our excellence in teaching & learning, research, and civic
engagement.
You may also be aware that on July 28 all public
universities were asked to come before the State Budget Committee to discuss the
increase in tuition rates. Indiana University was represented by President
McRobbie, President of the Board of Trustees Steve Ferguson, and Vice President
and Chief Financial Officer Neil Theobald. Together they reviewed the
aforementioned cuts and spending restrictions being implemented to reduce costs,
and presented the committee with information on the average cost of tuition and
fees.
The committee had several questions regarding the materials
presented and other issues. A follow-up meeting was requested between
members of the committee and the IU representatives. Senator Luke Kenley,
chair of the committee, also requested that the IU Board of Trustees reconsider
the tuition and fees approved at the July meeting. The Board of Trustees
will now consider this request.
You will receive additional updates as they become
available. Vice Chancellor Rhodes and I will continue to post updates on
the budget on the Budget Notes page in
the weeks to come. Thank you for your commitment to higher education and to
IUPUI.
7.29.09
Message from Chancellor Charles R. Bantz :
Dear Friends:
I wanted to take a moment to update you on recent activity
regarding budgets and tuition rates for IUPUI.
Indiana University Board of Trustees Meeting
On July 16th, Indiana University Board of
Trustees approved the
tuition rates
and budgets for
the coming biennium. The new fee schedule calls for
in-state undergraduate tuition and fees at IUPUI to go up by 4.6 percent this
year and 4.8 percent next year with some programs having fee differentials to
defray their higher costs of instruction. Most
full-time in-state students at IUPUI will see an increase of $332 and pay $7,523
for the year in tuition and fees. The new rates can be found at
www.osas.iupui.edu.
While the operating funds we will receive from the state
are equal to the FY09 budget for the next two years, part of the funds come from
the federal stimulus money. This means that at the end of the biennium we
will be looking at a 6.5% cut in state operating funds. President McRobbie
has announced budget restrictions in order to prepare us for the future.
The principles on which the Indiana University budget is based include:
·
Preserving and expanding academic core excellence
by providing resources to continue seeking out and hiring outstanding faculty
members.
·
Providing funding to continue building essential
infrastructure in accordance with the new master plans for IU Bloomington and
IUPUI.
·
Enabling IU to avoid layoffs and provide some
additional support for employees earning less than $30,000.
In order to achieve these goals, the 2009-10 budget
includes the following:
·
No base salary increases for either faculty or
staff with minor exceptions
·
A suspension of university policy permitting
bonus plans and payments by the campuses.
·
The budget line for
each newly vacated biweekly and professional position will be cut by 50%
·
Each unit’s FY10
general fund travel budget will be cut by 50%.
·
Funding for 129
additional faculty positions that are necessary to keep pace with university
enrollments as well as continuing to expand the university’s research
enterprises.
·
Providing adequate
funding to pay increased employee health care, energy and casualty insurance
costs and to ensure essential maintenance and repair of IU facilities. IU
will pay the healthcare premium increase for all full-time employees, by
freezing employee contributions for 2010 at current rates for 2009
·
Increasing the amount
of money available for student financial aid grants by nearly $20 million to
ensure that IU continues to enroll the best students, regardless of their
financial backgrounds.
Over the coming weeks we will be working with schools and
units to better understand the impact of these cost saving measures on their
programs. These are obviously difficult times. But we are grateful
that we are in the position we are in and not having to announce layoffs and
further cuts like many of our peers. At IUPUI we will be working to focus
our efforts on maintaining our excellence in teaching & learning, research and
civic engagement.
State Budget Committee Meeting
On July 28, all public universities were asked to come
before the State Budget Committee to discuss the increase in tuition rates.
Indiana University was represented by President McRobbie, President of the Board
of Trustees Steve Ferguson and Vice President and Chief Financial Officer Neil
Theobald. Together they reviewed the aforementioned cuts and spending
restrictions being implemented to reduce costs. They also presented the
committee with information on the average cost of tuition and fees for
undergraduate students on the Bloomington campus.
The committee had several questions regarding the materials
presented and other issues. A follow up meeting was requested between
members of the committee and the IU representatives. Senator Luke Kenley,
chair of the committee, also requested that the IU Board of Trustees reconsider
the tuition and fees approved at the July meeting. The Board of Trustees
will now consider this request.
I will provide any updates as they become available.
Should you have any questions, please let me know.
7.2.09
Message from Chancellor Charles R. Bantz :
Colleagues:
On Tuesday, the Indiana
General Assembly passed a biennial budget for fiscal years 2010 and 2011.
This was a particularly difficult year for the General Assembly, facing
declining revenues and philosophical differences on spending. I commend
the members of the legislature for their hard work in reaching a compromise
under such challenging circumstances.
Overall, Indiana University’s eight campuses were cut by
4.5 percent in fiscal year 2010 and another 1.5 percent in fiscal year 2011.
These cuts will be replaced with a one-time allocation of federal stimulus
dollars, which will essentially leave budgets
flat for the next two years. IUPUI received a 5.6 percent cut to base
funding in fiscal year 2010 and a .9 percent cut in 2011. These cuts are
based on a fully funded 2009 operating appropriation of $205 million.
Also included in the bill are:
-
$33
million authorization for the Indianapolis Neurosciences Building Phase II
-
$10
million authorization for the Life Sciences Lab Renovations
-
$10
million per year for the Indiana Innovation Alliance,
including $3 million for expansion of the medical school, $2 million for
Purdue technology programs, and $5
million for core research
-
$31.5
million systemwide for repair and rehabilitation,
including $13 million that was cut in FY 2009
IU Administration and the campus administration are
currently discussing the tuition rates for the biennium. President
McRobbie has indicated his intent to make an announcement on tuition early next
week. The proposed rates must be public for 10 days before they are voted
on by the Board of Trustees.
The campus administration is also reviewing the
implications of a 6.5 percent, or $13.3 million, cut in base appropriations over
the next two fiscal years. We will discuss options as to how to approach
this so that we are positioned appropriately for the 2012 fiscal year.
As soon as these decisions are made,
we will be able to communicate the impact at the responsibility center level.
We anticipate making decisions on the expenditure side during the week of the
July 13th.
1.22.09
Message from Chancellor Charles R. Bantz :
Colleagues,
As we discussed last Dean’s council, the economic challenges of 2008-2009 are nearly unprecedented. Therefore, it is essential we have the best thinking of all the leadership as we work through times where there is no answer at the back of the book. As I have been following the email traffic on the budget discussion, it is apparent that I need to clarify where we are in our budget planning.
Today we have two very different types of information---one is certain changes
in our budget---the other is proposals for our budget (with no way to judge the outcome of those proposals).
At this time we need to respond to the certain change—that State will “hold” back the equivalent of 1% of our state appropriation
over the next 6 months. This rescission (or reversion) is a one-time cash reduction.
The President has assigned to IUPUI $1.9 million of that reduction.
Having listened closely to the discussions of the past week, I concluded it is essential that I finalize the process for the certain reduction immediately. This may not be the approach used for future base budget reductions. We will have extensive discussions of that process in the near future.
We have made a decision to disproportionately reduced the support unit budgets. Therefore, budgets for 2008-2009 will be effected by the certain one-time reduction
in the following manner:
The 1% one-time reduction of cash taken from the state appropriation (totaling $1.9m) will be accomplished by support units contributing an amount equal to 1% of their FY09 general fund budget and Schools will contribute .53% of their appropriation.
This approach is consistent with President’s goals of reducing the impact to academic units, having the support units participate, and smoothing the impact across schools.
The specific cash reductions are shown in the attached spreadsheet.
This approach deals with the certainty of a $1.9 million cash reduction and it is the only decision finalized on the budget.
1.7.09
IU President McRobbie orders spending reductions of $4.9 million
Message from Chancellor Charles R. Bantz :
Colleagues,
This week, the Governor outlined his proposed budget for the State of Indiana for the next biennium. Should the proposal advance through the legislative process as proposed by the Governor, funding for the life sciences would be delayed or postponed, and all higher education institutions in Indiana would see a 4% drop in state funding for the next 2 years. Now that the Governor has presented his budget proposal, the Indiana General Assembly will work to pass their version of the state’s budget. The IU State Relations team will be working hard during the legislative session to build support among legislators for Indiana University and the Indiana Innovation Alliance.
Also this week, the state budget agency notified Indiana University that operating funds for the balance of the academic year must be reduced by 1%. $4.9 million is expected to be reduced from Indiana University administrative hiring, equipment, supplies and travel among other operational reductions. This is intended to be a one-time cash cut to help manage the fiscal budget crisis in the state of Indiana due to the drop in projected and actual tax revenue.
The campus administration will continue to work with the university Chief Financial Officer Theobald’s office to identify requirements of the cut. As soon as we have further clarification on the specific reductions at IUPUI we will notify you immediately.
We will continue to post information about the university budget http://finance-admin.iupui.edu/budgetnotes
Thank you for your patience during this difficult time.
12.12.08
IU's McRobbie plans salary freeze for senior administrators
Message from IUPUI Chancellor Charles R. Bantz: Inside IUPUI 12.15.08
The state of the U.S. and global economy underscores the prudent and necessary actions that have been recommended or taken by our president, Michael A. McRobbie. On the same day the news release below was released, the Wall Street Journal reported: "The U.S. economy is deteriorating more rapidly than expected just six weeks ago, indicating the recession will be deeper and longer than feared..."
We are in the process of identifying each position on our campus which will be affected by this policy in the days to come. For those who are likely to be affected by the recommendation to freeze salaries, let me say I appreciate your leadership, support, and sacrifice as we enter these challenging economic times. We are very fortunate to have leaders like you.
