Last modified: Friday, June 26, 2009
IU campuses will remain open even without a new state budget
FOR IMMEDIATE RELEASE
June 26, 2009
BLOOMINGTON, Ind. -- All Indiana University campuses will continue to operate under their existing budgets after Tuesday, June 30, if there is no state budget enacted for the new fiscal year. Summer classes will continue and employees will continue to be paid.
The authority to continue operations was approved today (June 26) in a special meeting of the IU Board of Trustees Finance and Audit Committee, chaired by Trustee Thomas E. Reilly Jr.
The resolution allows IU campuses to continue operations and expenditures under current budgetary authority until a new state budget is in place and IU trustees are able to adopt a new university operating budget. The action ensures that IU's 17,000 employees will continue to receive paychecks on time and vendors will continue to be paid for goods and services.
Neil Theobald, vice president and chief financial officer, said IU would have about $200 million to $300 million in cash reserves that could be tapped for continuing operations in July and August, if necessary, if the university does not receive its normal allocations of state support.
IU received about $600 million in state support during the 2008-09 academic year, which represented about 23 percent of its overall $2.7 billion operating budget.
Indiana lawmakers have been meeting in special session since June 11 in an effort to complete a biennial budget for 2010-12.
Theobald said that IU will have to delay mailing tuition bills for the upcoming fall semester for several weeks because the university is unable to calculate tuition rates and student financial aid offers until it knows how much state support it will receive.
Once a new state budget is adopted, it will take about 10 days for IU trustees to set tuition rates and approve operating budgets for the 2009-10 academic year.