Indiana State University trustees on Friday approved a $185.4 million general fund operating budget for 2020-21, but officials cautioned that any reductions in state revenue or enrollment losses could mean cuts.
Next year's budget represents a decrease from the 2019-20 budget, which is $188.9 million.
Officials emphasized that 2020-21 budget is subject to change, based on any changes in state funding or enrollment projections. The approved budget is based on information from late February, prior to major campus changes that occurred because of the pandemic.
Later in the day, the news out of the Indiana Office of Management & Budget was not promising; the state missed its revenue projection by nearly $1 billion for April, although as much as 80 percent of that is attributable to the income tax deadline being moved from April 15 to July 15 this year.
During the board meeting, ISU President Deborah Curtis said, "All of us recognize those [2020-21] budget assumptions undoubtedly may change in the coming weeks as more information becomes available regarding state funding and enrollment."
She added, "Any material reductions in revenue for the next fiscal year will likely result in reduced expenditures as well."
Diann McKee, ISU senior vice president for finance, noted that "much has changed since February" and as more becomes known in the next few weeks, "We will reassess the budget as may be necessary to ensure expenditures don't exceed revenue."
ISU is still responding to enrollment losses from fall 2019.
To balance the budget for next year, ISU had to make $6.3 million in internal reallocations that included eliminating 51 vacant staff positions.
Curtis, in an interview, emphasized that right now, "No one in a job had to lose a job." But if further cuts become necessary, those decisions "get more and more difficult to make."
Higher education in some other states have experienced cuts in state funding, she said.
With higher education, much of the budget is in personnel costs.
Trustee chairman Jeff Taylor said the budget presumes "an orderly start of fall classes on campus in as close to something like normal as we can imagine" right now.
McKee said it also assumes no change in state funding.
"We understand that at this point, all is subject to change," Taylor said. We will have to persevere with the way this fall unfolds and hopefully, we have an orderly and safe resumption of classes and this budget will serve us just fine. But if we have to amend, we have to amend."
Chris MacDonald, faculty senate chairwoman, said the budget is of "much concern" to faculty, and the senate surveyed them on priorities if cuts become necessary, with 500 responses.
Faculty were clear that instruction, both undergraduate and graduate, "is our core priority" at ISU, MacDonald said.
Contract extension
In another matter, trustees approved a one-year contract extension for Curtis, through June 30, 2022..
When hired, Curtis was given a 3 1/2 year contract that extended through June 30, 2021.
Taylor explained the board had planned a comprehensive evaluation facilitated by an outside professional; he said that is customary in higher education when trustees are considering a long-term contract extension, and there is one year to go on a president's contract.
But because of the pandemic, trustees have been unable to conduct that review; that evaluation has been postponed to next spring.
The board unanimously agreed to renew Curtis' contract for one year with no other changes in contract terms.
After the meeting, Curtis acknowledged the next two years "are going to be incredibly intense years," as the pandemic continues to take its toll.
"Our goal is not only to weather this ... but to come out on the other side stable, healthy and moving forward," Curtis said. "I think we can do both at the same time. That will be our challenge, but it's every day, all day long, focused on stabilizing and growing the institution."
In other matters, the board:
• Approved a revised campus tobacco policy that includes a prohibition of vaping; the changes take the university much closer to becoming a comprehensive, tobacco-free campus. It takes effect July 1.
The policy is titled, “tobacco, vapor and smoke-free campus.” It prohibits use of electronic smoking devices, hookah, smoking and tobacco products on university-owned, operated or leased property. Use would still be permitted in “the enclosed cabin” of privately owned vehicles. Designated smoking areas will be gradually phased out.
• Authorized the treasurer to pursue bond financing for the Dreiser Hall renovation, not to exceed $18.4 million.
• Heard information on a proposed policy that would prohibit ISU employees from wagering on the university’s intercollegiate athletic contests. The proposed policy will go to various campus groups for input, and trustees will act at a later time.
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