Colleagues:
Earlier this afternoon, the Board of Trustees held a regular meeting to adopt an operating budget and a salary plan for next fiscal year and to approve tuition and fees for the next two fiscal years.
The Board approved an increase of 1.25% in undergraduate tuition and mandatory fees for each of the next two years. That modest increase is less than the rate increase recommended by the Indiana Commission on Higher Education and less than the anticipated rate of inflation over that two-year period. With respect to graduate tuition and mandatory fees, the Board approved an increase of 1.27% to 1.34% for each of the next two years.
These modest increases reflect our continued commitment to providing access to an affordable, high-quality education for all of our students. We maintained this commitment to our students, even though our state appropriations will decline next year and increase minimally in the second year of the biennium. In that regard, I am disappointed that the state’s current performance funding formula does not reward our University for substantially increasing our on-time, four-year graduation rate, for increasing the number of STEM degrees awarded, and for increasing the number of degrees awarded to students who are eligible to receive Pell grants.
Despite this decline in state operating support and increases in certain fixed costs, such as utilities, the Board was able to adopt a sound operating budget for next year, because we identified appropriate expense reallocations and reductions. I am grateful to everyone who contributed to helping us develop a more efficient operating budget.
In order to maintain a stable and balanced budget, the Board adopted a salary plan that provides a one-percent recurring salary increase, effective July 1, 2019, for every employee who received a “satisfactory” or better performance evaluation from his or her supervisor. In addition, the Board authorized the appropriate salary supplements for tenured and contract faculty members who earned promotions this past year.
The Board and I recognize that this modest salary increase does not fully recognize the individual and collective contributions of our faculty and staff. That is why the budget adopted by the Board for next year contemplates the possibility of an additional one-percent salary supplement after January 1, if the mid-year budget forecast is favorable. In order to have the resources to fund this potential salary supplement, we must be confident that our net tuition revenue from enrollment, including new freshman and undergraduate retention, will meet our revenue targets, and we must be confident that we have successfully implemented the expense reallocation and reduction plans that have been developed by all of the divisions and the academic colleges.
This past year, we successfully addressed a modest operating budget shortfall by working together to reduce or defer certain expenses. As a result of our proactive efforts, we now anticipate a modest operating surplus at the end of this fiscal year. I am confident that, if we demonstrate the same discipline and resolve, we can meet the targets necessary to support the salary supplement.
Following the regular meeting, the Board held a special meeting in Sursa Hall. During this special meeting, the Board voted to
rename the College of Architecture and Planning in memory of an exemplary alumnus – R. Wayne Estopinal. The Board’s decision to rename CAP in honor of Wayne is an enduring testament to his service to CAP and to our University.
I wish you all a restful, productive, and safe Summer.
And I look forward to seeing you on Friday afternoon at our closing Centennial celebration.
