ISU taking 'proactive' economic steps

sue.loughlin@tribstar.com

TERRE HAUTE - Indiana State University will be conservative about filling employment vacancies in response to the state's revenue shortfalls, university officials say.

"The university is not in a hiring freeze, but I have asked the members of my Cabinet to carefully review any open positions and to justify the need to fill any vacancies," President Dan Bradley wrote recently in an e-mail to the university community. "We will be somewhat conservative in our hiring during the coming months and may delay or prevent the filling of some positions."

The state is estimating a $763 million gap between spending and revenues during the current fiscal year, and Gov. Mitch Daniels has announced funding cuts for all state agencies.

In his letter, President Bradley wrote that "the economic times we find ourselves in are a cause for much concern and a time for proactive measures."

In conjunction with the state revenue forecast issued earlier this month, all public institutions of higher education have been asked to revert 1 percent of their 2008-09 operating appropriation and 25 percent of repair and rehabilitation funding.

ISU receives 1/12 of its state appropriation each month, said Diann McKee, ISU vice president for business affairs. The 1 percent cut in operating appropriation will amount to about $770,000.

McKee said it's not clear when, or if, ISU will get that money back. "I think the state wants some money in reserve to meet whatever cash flow needs it might have," she said.

ISU may have to delay some expenditures because of the funding cuts, she said.

The cuts also mean ISU won't receive any facility repair/rehabilitation funding for the current year, which amounts to a little more than $2 million, McKee said.

Fortunately, ISU still expects to receive a $2 million delayed payment from 2001, when the state also had financial challenges. "We will use that on some projects in which we need to move forward," McKee said.

In his letter, Bradley wrote, "We will know more about the 2009-11 budget as the legislative session unfolds. In the meantime, I ask for your understanding and continued good stewardship of all university resources."

Other public universities also have responded to the state's economic downturn.

Indiana University is recommending a salary freeze for senior administrators in the 2009-10 fiscal year.

Purdue University said it will suspend merit bonuses, review job openings and instruct all departments to plan for budget cuts.

Ball State plans to use a partial hiring freeze; it will fill faculty positions, but it will delay filling administration, staff and service openings.