Sue Ellspermann (IBJ file photo)
Ivy Tech Community College will eliminate more than 200 positions at its locations across the state as school leaders grapple with significant state budget cuts, employees learned Friday.
Ivy Tech President Sue Ellspermann wrote in an email to staff Friday morning that recent actions by the Indiana General Assembly—including a 5% cut for all higher education institutions—have had “an immediate effect” on the community college’s planning as it approaches the beginning of its 2026 fiscal year, which begins July 1.
Between the across-the-board cut and the State Budget Agency withholding an additional 5% of its allocation, Ivy Tech would lose more than $54 million over the next two years, she wrote. On top of this, Gov. Mike Braun and the Indiana Commission for Higher Education have recommended a tuition freeze for all state educational institutions, and tuition, fees and state appropriations represent the bulk of the university’s revenue.
“Staffing reductions are always difficult decisions that we do not make lightly,” she wrote. “Every individual impacted has made meaningful contributions to our students, our campuses, and our mission. These changes do not reflect the value of their work, but rather the harsh financial reality we currently face.”
Emily Sandberg, assistant vice president of communications and public affairs, told IBJ in an email that 202 employees are affected statewide, including 21 at the Indianapolis campus and two in Hamilton County. In Indianapolis and Hamilton County, the majority of the cuts are staff, with seven faculty members laid off.
Most of the affected faculty and staff across the college system were notified on Friday, according to Ellspermann’s letter, but notifications will linger into next week.
“This is a challenging moment for our College, but I know Ivy Tech is strong,” Ellspermann wrote. “Together, we will navigate this period with compassion, integrity, and a continued focus on our educational mission.”
The Indiana Capital Chronicle reports lawmakers appropriated about $243 million and $245 million for the 2023-24 and 2024-25 school years, respectively. In the biennial budget approved by lawmakers earlier this year, that drops to around $236 million for fiscal years 2026 and 2027.
Ivy Tech is the third-largest college in Indiana, with more than 6,500 employees at 45 locations across the state.
It is not the only Indiana higher education institution making similar decisions.
Purdue University Fort Wayne announced last week that decreased state and federal support factored into its decision to eliminate 45 positions, Fort Wayne-based WPTA Channel 21 reported. As part of its budget reduction efforts, the university also announced it would discontinue its baseball and softball programs.
At the University of Southern Indiana, administrators are weighing a tuition hike to offset the drop in revenue, university President Steve Bridges told Inside INdiana Business. More than 90% of the school’s operating budget comes from tuition and state appropriations, he said.
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