[UPDATED] Colleges and Universities Respond to State Funding Cuts

Press Release

INDIANAPOLIS -- Today (Dec. 4) IU President Michael A. McRobbie made the following statement regarding Indiana Gov. Mitch Daniels' announcement this morning about the state's financial difficulties and how higher education institutions in Indiana would be affected. The statement was made at Indiana University-Purdue University Indianapolis at the IU Board of Trustees Meeting.

"I think it is appropriate for me to make just a few brief comments about an announcement I believe that the Governor is making this morning regarding the state's financial difficulties and the implications that will have for the funding of higher education in this state and for Indiana University in particular.

Late yesterday afternoon I spoke with senior officials of state government -- as did all other public university presidents -- and was informed of significant further cuts to the overall funding of higher education in Indiana that will be implemented in the next 30 days.

The details of these cuts, and their impact on Indiana University, have not yet been determined.

We have been asked by state officials to work closely with them in determining how these cuts will be allocated among the state's public institutions of higher education, and we will certainly do so.

As we work with state officials on this matter, I intend to be clear on a few critical points:

First of all, we recognize and understand that these are difficult and extraordinary times. State revenues are under extreme pressure, and, unfortunately, state officials are forced to consider cuts in many important programs, including higher education. We appreciate the fact that the state has implemented other cuts before addressing higher education funding, and we accept the reality that we cannot expect to be immune from the consequences of this economic downturn and its impact on state revenues.

Second, I want to make it clear that as we work with state officials on this issue, we will be stressing the vital role that Indiana University plays in the life of this state and the importance of preserving the excellence that is reflected throughout this institution. Our faculty, staff and students have made great strides in moving this institution forward in recent years, and it is vital to the state, as well as to Indiana University, that we are able to preserve and build on these gains.

Third, we will be making it clear that it is absolutely essential that these cuts to the state's higher education budget, be fairly allocated among public institutions in this state. It should be noted that Indiana's two research universities have already rolled back trustee approved tuition this year in light of economic conditions facing Hoosier families. It is therefore essential that these new proposed cuts not fall disproportionately on institutions that have already made sacrifices that others were exempt from making.

Fourth, it is critically important that the role and the authority of trustees be preserved throughout this process. Trustees of our public universities have the legal fiduciary responsibility for their respective institutions as well as the responsibility for overseeing the strategic direction of their respective institutions. They are best positioned to work with university management to determine how cuts within their institutions should be implemented.

Finally, I want to say that I have made it clear since becoming president, that one of our missions must be engagement in the economic life of our state. I am proud that we have made great strides in this regard.

In fact, before learning of these pending cuts to our budget, we were preparing to announce in a story that broke just this morning, that Indiana University, in conjunction with private philanthropic donors, would be establishing a $10 million venture capital fund to support the early stage growth and development of Indiana University technologies that have true commercial potential. This translates to more start-up companies, more jobs for Hoosiers and new revenues to help support our fundamental teaching and research missions.

It is our hope that initiatives such as this will not be threatened by the scope and magnitude of the budget cuts we will have to make.

In these very difficult economic times we have two fundamental objectives:

to preserve and expand the academic core of the university by retaining and securing the best faculty, and
to continue to build the infrastructure essential to supporting research and education at the highest levels of excellence.
Before turning to my report, let me reiterate one key point in all of this:

I want to assure our faculty, our students and our staff that we will do everything in our power to ensure that Indiana University is able to sustain the forward momentum that we all have worked so hard to achieve in recent years, and that we will emerge from this budget crisis as an institution of higher learning whose commitment to excellence in all our core missions is unquestioned.

Source: Indiana University

Press Release

WEST LAFAYETTE, Ind. - Purdue officials on Friday (Dec. 4) told the governor that the university will support his call for further belt-tightening in the face of declining state revenue.

Gov. Mitch Daniels said that in light of declining revenue, the state will cut funding for higher education by $150 million over the remainder of the biennium. This amount represents 6 percent of state general fund support of operating expenses. The Commission on Higher Education will work with each state-supported institution to determine its share of the cut.

"We understand the challenges facing our state," said Purdue President France A. Córdova. "We already have started to take steps to decrease expenditures in a strategic way that will maintain the value of our Purdue degree. This new challenge will be added to those efforts."

In November, based on an assumption of flat state appropriations for the biennium that begins in 2011, Purdue announced it would look to cut $30 million in recurring expenditures from the West Lafayette campus general fund, an operating budget that for this academic year is $873 million.

"If we exclude instructional costs and mandatory costs such as utilities, debt service and benefits, the $30 million amounts to an 8 to 10 percent cut in the remainder of that operating account," said Al Diaz, executive vice president for business and finance, treasurer.

The general fund is the portion of the budget that supports the university's academic activities. Its funding comes primarily from state operating appropriations and student fees. Reductions would not be made in the remainder of the budget for the West Lafayette campus, Diaz said, because it includes sponsored research funding and self-supporting enterprises such as University Residences and Intercollegiate Athletics.

Earlier in 2009, as the state of Indiana faced declining revenues, Purdue made across-the-board cuts, cut positions, curtailed hiring and travel, and withheld pay increases.

"These steps helped us in the short run, but they cannot be sustained on a recurring basis if we are to maintain the quality of our academic programs and the progress toward our strategic plan goals," Diaz said. "We will now look for more systemic, long-term actions. We will examine all aspects of the university's operations, including academic programs, administrative operations and employee total compensation. We will explore all possible ways to ensure that our processes, practices, organizational structure and systems are both efficient and effective."

A Web site at http://www.purdue.edu/sustaining includes reports and updates and provides a way for members of the university community to offer suggestions.

Diaz said a detailed plan and criteria for meeting these challenges will be developed by mid-January, and any actions that would require Board of Trustees approval must be ready in time for its February meeting. Some decisions will take effect in the coming months. All will be factored into budget planning for the next biennium.

Source: Purdue University

Press Release

Our efforts to aggressively optimize our efficiencies and cost-savings as one statewide community college have been well documented. We will continue to find ways to make our processes across the state more consistent and more efficient to maximize the return on every dollar the state invests in the community college. We appreciate how the General Assembly and Governor have recognized the need for increased funding for the community college but also understand the challenges the state currently faces. We look forward to working with Commission of Higher Education regarding this latest proposed action.

Source: Ivy Tech Community College