Indiana University trustees approve operating budget for 2015-16
FOR IMMEDIATE RELEASE
GARY, Ind. -- Indiana University trustees have approved the university's operating budget for the next fiscal year.
The fiscal year 2015-16 operating budget, presented to trustees today by IU Senior Vice President and Chief Financial Officer MaryFrances McCourt, calls for spending $3.27 billion on IU's campuses across the state. The approved budget represents a 3.7 percent increase -- or $116.8 million -- over the previous year.
IU's operating budget covers such expenses as employee salaries and benefits as well as energy and utility costs.
The operating budget reflects a two-year freeze on undergraduate resident student tuition at IU Bloomington, which IU trustees approved earlier this month.
IU's recent tuition control efforts, along with a student financial literacy program that has garnered nationwide attention for its innovation and effectiveness, have contributed to IU remaining affordable and accessible to students and their families, McCourt said, and the IU Bloomington campus being the lowest average net cost of attendance in the Big Ten.
IU's financial literacy initiatives have helped reduce undergraduate student borrowing across the university by nearly 16 percent over two years, resulting in approximately $44 million in debt savings.
The operating budget also includes merit-based salary increases for faculty and staff that average 2 percent. It also accounts for minimum wage rates of $10 an hour for eligible support and service staff and $9 an hour for temporary employees.
In addition, individual operating units have the discretion to distribute up to an additional 1.5 percent of their salary budget to high-performing employees, but any additional money distributed must be offset by unit-specific operational savings.
Other budget highlights include:
- A $16.4 million, or 3.5 percent, increase in state appropriations largely resulting from IU’s strong commitment to performance metrics established by the Indiana Commission for Higher Education.
- An increase in student financial aid of 6.4 percent over last year to $245.6 million.
- A continued decrease in the cost of employee benefits resulting from the containment of health care cost increases and redesign of some employee retirement plans.
- A focus on cost containment, with a particular focus on sustainability and energy efficiency.