Last modified: Friday, May 2, 2008
Budget increases reflect IU presidentís goals
FOR IMMEDIATE RELEASE
May 2, 2008
BLOOMINGTON, Ind. -- The $2.6 billion budget approved today (May 2) by Indiana University trustees includes a 7.2 percent increase in spending to support several of President Michael A. McRobbie's initiatives.
The budget estimates that IU will receive $115 million in increased general fund revenues during the 2008-09 academic year, of which $45 million will go for salary increases, $25 million will cover increased benefit costs, and $15 million for increases in financial aid grants to students. The remainder will be used for a variety of purposes, including new academic facilities, support for research initiatives, increased energy and utility costs, graduate student health insurance and debt service.
Neil Theobald, vice president and chief financial officer, told trustees that competitive salaries are a key tool in achieving the goal of attracting and retaining top faculty. He said deans and campus chancellors were given broad leeway to reward merit and achieve a more market-based salary structure.
"We sought to be highly competitive with other Big Ten public universities and with our national peers, especially in those disciplines and subject areas of strategic importance," Theobald said. "We have had an excellent year in recruiting top academic talent and in keeping our established stars and up-and-coming stars."
The budget shows the median faculty salary increase ranging from 3.0 percent at IU Southeast to 4.5 percent at IU Northwest in the 2008-09 academic year. The median increase for faculty salaries at IUPUI (excluding the School of Medicine) was 4.4 percent, while the median at IU Bloomington was 3.9 percent.
Data presented to trustees showed that about 19 percent of faculty members at IU Bloomington will receive an increase of 6 percent or higher, while 15 percent of faculty at IUPUI (excluding the School of Medicine) will receive increases in that range.
The median professional and biweekly salary increases range from 3.0% to 4.0% across the university. At IU Bloomington, the median professional increase will be 4.0 percent and the median biweekly increase will be 3.5 percent. At IUPUI, the median increase for both professional and biweekly employees is 3.5 percent.
The budget shows revenue from student tuition will increase by an estimated $85 million, while revenue from the state will increase by $23 million.
The revenue estimates are based on the tuition rates set for 2008-09 last May by the Board of Trustees. At the time, trustees approved a 5 percent increase in tuition and required fees in each of the next two years for in-state undergraduate students at all campuses. Rate increases for out-of-state students varied from campus to campus but were generally higher.