Indiana University

News Release

Friday, August 20, 2010

Last modified: Friday, August 20, 2010

IU trustees approve overall 3 percent raise for IU employees

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Aug. 20, 2010

INDIANAPOLIS -- The Indiana University Board of Trustees today (Aug. 20) unanimously approved a recommendation from President Michael A. McRobbie for pay raises averaging 3 percent for university faculty and staff.

The new merit-based pay levels will go into effect on Nov. 1. Salaries were frozen for most of IU's 17,000 employees during the 2009-10 fiscal year in response to cuts in state support and uncertainty as to how deeply the economic recession would impact IU.

McRobbie told trustees that he waited until now to make a salary recommendation for the 2010-11 academic year because he wanted to be sure that continuing cost reductions and strong student enrollments would generate sufficient funding to allow salary increases.

McRobbie thanked trustees for their support of his recommendation. He noted that the funding for these raises is not tied to tuition or state revenues, but rather is entirely being paid for from administrative efficiencies and new controls on the cost of employee benefits.

"These raises will be awarded on the basis of merit," McRobbie said. "This enables us to reward and recognize the many faculty and staff members whose dedication and hard work have brought us so much success over the past year."

Dr. William Cast, chair of the board of trustees, said he has been very pleased with the momentum the university has achieved in such areas as enrollment, research funding and private contributions.

"Yes, these raises are deserved," Cast said. "We have seen outstanding growth over the past year in many areas. However, we must remember that we are able to do this only because we were successful in cutting expenses elsewhere in the university's budget. As we go forward, it will be especially important that we be even more diligent in our efforts to control the growing cost of health care."

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