TERRE HAUTE —
Indiana State University’s administration is recommending the elimination of 16 mostly vacant positions to help balance the budget for 2011-12.
In response to anticipated further cuts in state funding, ISU must cut its own budget by $1.3 million for the next fiscal year.
On Wednesday, university officials conducted a budget forum and outlined areas recommended for cuts. ISU employees and students had an opportunity to comment and ask questions. The recommendations will be part of the 2011-12 budget considered by the board of trustees later this year.
While nothing is final until the legislature approves a state budget, “We have to start preparing,” said ISU President Dan Bradley. “It does appear there will be reduction from the state, it will be sizable and we have a need to get our budget balanced.”
Cuts will come from non-instructional areas, said Diann McKee, vice president for business and finance. Proposed cuts won’t reduce the number of tenure and tenure-track faculty lines or impact a student’s ability to enroll in courses needed for on-time graduation.
About half of the positions eliminated would be support staff and half professional positions, she said. None of the positions is part-time. The positions are either currently vacant or will be vacant due to retirements on or before June 30, with the exception of three positions in which individuals will be affected.
McKee said she could not discuss specific positions because those affected are still being notified. Individuals who lose their jobs will be entitled to the same severance packages offered last year when a much higher number of people lost jobs, Bradley said.
The $1.3 million represents a 2 percent budget reduction in all non-instructional budgets with the exception of utilities, benefits and student financial assistance.
The majority of the reductions include elimination of primarily vacant positions; elimination of support for software and specialized hardware in colleges; elimination of stipends for faculty training; elimination of book binding services in the library; and reduced painting services on campus through Facilities Management.
ISU has five painting positions, and by June 30, all but one of those positions will be vacant.
McKee said that under the governor’s proposed biennial budget, ISU would lose $4 million in permanent funding to its operating budget.
If the governor’s recommendation is approved, ISU’s state appropriation will be reduced to what it was in 1996, Bradley said.
He predicts that budget-cutting and budget reallocations will become something ISU must do annually “simply because the state’s share of our budget is not going to grow.” Even in good years, growth would probably be limited to the rate of inflation, he said.
Increasingly, ISU must look for other ways to increase revenue through grants, contracts and private giving, he said.
Although the governor’s budget calls for a $4 million cut, ISU believes that $1.3 million in cuts will be sufficient to balance the budget, McKee said.
The extensive cuts last year “gave us some flexibility so we didn’t have to resort to that type of thing again this year,” she said.
Also working in ISU’s favor is a 10 percent increase in enrollment this past year, and officials are planning for another increase this fall. That, coupled with tuition increases, have provided additional revenue. ISU trustees want to limit tuition increases to about 3 to 3.5 percent, Bradley said.
While this year’s cuts are not as dramatic as last year’s, they are still substantial, the president said. Last year about 108 positions were eliminated, also because of state budget cuts.
“It’s a dramatically different situation than we were in last year, but that doesn’t make it any less pleasant if your area of the budget has been negatively impacted,” Bradley said.
The administration has met with campus employee and student governance groups in planning the proposed cuts.
Two areas that will have a major impact on the new state biennial budget are health care, Medicaid in particular, as well as corrections, Bradley said. Those two areas “are driving the state budget now,” he said.
ISU’s health care costs are going up 8 percent this year, a rate that cannot be sustained long-term, he said. ISU must reduce health care costs; health insurance currently makes up 10 percent of the operating budget.
Bradley and McKee fielded several questions that related to such issues as layoffs, severance packages, new sources of university revenue and land acquisition.
One person asked whether it was a good idea to be making land purchases during difficult budget times.
Land purchases do not involve general fund money, Bradley said. Also, just as ISU must continue to repair and maintain facilities, “We have to continue to plan going forward for other kinds of development.”
Debra Robinson, who works in the library and plans to retire later this year, said she remains interested in ISU’s future.
“We can ask all the questions we want, but things are going to go the way they’re going to go. You’re just going to have to adjust to it,” she said. After the forum, she asked Bradley what individuals on campus can do to help, and he suggested that if people see waste on campus, they should cut it out.
She believes each department has areas where it can conserve. “Everybody needs to look at that and how they can hone what they do and make it better,” she said.
Sue Loughlin can be reached at (812) 231-4235 or sue.loughlin@
tribstar.com.
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Indiana State to cut 16 more positions
Reduction of the mostly vacant positions will help balance budget
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