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James Tinney

William Stephan

Last modified: Thursday, March 28, 2002

New round of budget cuts for IU

Indiana University's budget will be cut an additional $3.4 million in light of the deficit management plan announced Thursday (March 28) by Gov. Frank O'Bannon.

IU has now absorbed more than $100 million in cuts and withheld appropriations as the state's worsening economy prompted a series of budget reductions beginning last summer.

"The scope of the budget cuts affecting Indiana University is very serious and harmful," said IU President Myles Brand. "These additional reductions pose a great challenge to our university as we strive to maintain access and excellence. They place even greater upward pressure on tuition levels and impede our ability to contribute to the state's economic growth and development efforts."

Brand acknowledged the difficult set of decisions facing the governor and recognized that the cuts could have been even deeper. "I appreciate the governor's efforts to protect higher education, and IU in particular," Brand said.

The cuts announced today include $2.2 million in IU's general operating budget and an additional $1.2 million reduction in special state appropriations for several projects, including university technology initiatives.

To date the university has drawn deeply from its own reserves and has benefited from efficiency efforts, including administrative cuts, in order to lessen the impact of state budget reductions.

Building maintenance budgets have been particularly hard hit by these cuts. It now appears that additional job reductions in the university's facilities area are inevitable.

"Our R&R (repair and rehabilitation) budget has been decimated," said J. Terry Clapacs, IU vice president for administration and chief administrative officer. "We are left with only a small fraction of our original budget, and we have few options but to consider reductions in our workforce."

Brand emphasized that he remains committed to protecting the quality of Indiana University during this time of budget crisis. "The academic mission of the university will be wholly preserved," Brand said. "In an increasingly competitive global economy, we cannot afford to compromise our standard of excellence. I urge the governor and legislature to address these critical budget issues at the earliest possible juncture."