Indiana University

News Release

Wednesday, December 16, 2009

Last modified: Wednesday, December 16, 2009

IU hits $177 million in cost reductions as part of ongoing effort

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Dec. 16, 2009

BLOOMINGTON, Ind. -- Indiana University has achieved $177 million in operating expense reductions as part of an ongoing university-wide cost-containment effort, university officials announced today (Dec. 16). Over the next decade, officials added, IU will realize nearly $1 billion in cost savings from this effort.

IU President Michael A. McRobbie said that although the spending cuts have come at a time when university-wide enrollment has increased by some 5,000 students, they have been accomplished with no harmful impact on the quality of academic and research programs on any campus.

"We have looked across the entire operation for opportunities to reduce costs and become more efficient," McRobbie said. "In these difficult times, it is imperative that we do everything within our power to find ways to use our tax and tuition revenues as wisely as possible. We will continue these efforts, and I am confident we will achieve even more savings in coming months."

McRobbie said the reductions achieved to date will help the university adjust to a 6 percent cut in state support for higher education recently announced by Indiana Gov. Mitch Daniels earlier this month.

"All of us at Indiana University must recognize that the recession is placing new and difficult demands upon us," McRobbie said. "Although some of the spending reductions we put in place may bring short-term pain, the efficiencies and improvements we are making will bring long-term positive impacts to the university."

The cuts include $98 million in recurring expenses that will carry into future budget years and an additional $79 million in one-time cuts that can be applied to this year's budget.

"As we continue to look for more ways to cut costs and improve efficiency, we are focusing on such areas as centralizing more of our administrative functions, finding additional ways to decrease health care costs and eliminating unnecessary and duplicative operations," said Neil Theobald, vice president and chief financial officer.

Here is summary of the $177 million in cost-reductions made to date:

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