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News Release

Last modified: Friday, December 12, 2008

IU's McRobbie plans salary freeze for senior administrators

FOR IMMEDIATE RELEASE
Dec. 12, 2008

INDIANAPOLIS, Ind. -- Indiana University President Michael A. McRobbie today (Dec. 12) announced he will recommend a salary freeze for senior administrators as part of his plan to deal with potential revenue shortfalls in the next fiscal year.

The announcement came during the IU Board of Trustees business meeting at IUPUI.

McRobbie said the freeze would apply to some 300 to 400 employees and result in a savings of more than $2 million in the 2009-10 fiscal year.

"My goal is to protect our ability to fully perform our primary missions of education and research even in the face of declining or static revenues," McRobbie said. "I am also determined to keep IU as affordable as it is now for Indiana residents."

McRobbie noted that he has already announced a university-wide slow-down in the hiring of administrative personnel and directed his financial and administrative staff to implement a number of other cost-saving measures.

McRobbie's decision came one day after the state's new revenue forecast was announced. The forecast predicted the state would take in $935 million less than what it had expected when the current two-year budget was drafted in 2007.

This year, about 22 percent of IU's $2.6 billion budget came from state support.

McRobbie said his salary freeze recommendation would come to trustees in May as part of his budget recommendations for the 2009-10 fiscal year.

McRobbie said that in the meantime, he would continue to monitor the situation closely.

"I will take whatever steps are necessary to preserve our ability to meet all our obligations to our students and to the state of Indiana, and to ensure that an IU education remains affordable," he said.

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