GARY — Indiana University's operating budget is expected to grow to $3.7 billion for fiscal year 2019, an increase of about $200 million from the previous year.
The IU Board of Trustees Finance, Audit and Strategic Planning Committee unanimously approved the proposal during its meeting Thursday afternoon at IU Northwest. Included in the proposal was a plan to gradually bring full-time, non-temporary employees to a minimum pay rate of $15 an hour.
The board approved an operating budget with special provisions to increase wages for employees making less than $15 an hour at its meeting in June of 2017. At that time, IU President Michael McRobbie said similar increases over the next few years would ensure all full-time, non-temporary employees would be making at least $15 an hour soon after the university's bicentennial in 2020.
About 1,657 employees made less than $15 an hour in 2018, according to a slide presented to the board of trustees. The new operating budget will bring that number down to 984. By 2022, the number is expected to shrink to 278 or about 1.5 percent of employees.
Several trustees requested John Sejdinaj, vice president and chief financial officer, keep in mind the rate of mandatory costs for employees when considering pay increases. Trustee Patrick Shoulders asked about the cost of parking passes, something he took issue with when the previous operating budget was approved. Sejdinaj told him the cost of parking passes would not increase this year.
Trustee James Morris expressed concern about how much living costs would increase by the time all IU employees are making $15 an hour. After the meeting, Morris said while he would like to get all employees up to $15 an hour at a faster rate, the university is making progress in this area.
"We want to be sure we keep pace and that the people working for this university and committing their lives to IU are fairly compensated," he said.