Senate Budget Committee Report

Budget Recommendations based onBudget Hearings & Budget Forum

February 27, 2015

Budget Hearing Summary

Mission: Recommend cuts to meet the projected shortfall of $2,451,600 for FY 2015-16

Old: Estimated Actual Income from FY 2014-15 62,182,804.00 New: 1.75% Tuition Increase 516,250.00 New: Governor's Budget Increase (.8%) 188,891.00 TOTAL PROJECTED CAMPUS INCOME FY 2015-16 62,887,945.00 Old: Total Campus Expenditures from FY 2014-15 - 64,074,260.00 New: 2% Salary Increase - 890,000.00 New: Titan Success Center - 154,373.00 New: Faculty and Other Promotions - 204,912.00 New: IU Foundation Assessment (Bicentennial) - 16,000.00 TOTAL PROJECTED CAMPUS EXPENDITURES FY 2015-16 - 65,339,545.00 PROJECTED DEFICIT FY 2015-16 -2,451,600.00

Budget Hearing Summary (cont’d)Unit Targeted Base Target: 5% Cut Proposed Cuts

CLAS 13,347,615 - 667,381 - 474,438 Health Sciences 3,515,136 - 175,757 - 174,173 Business 5,133,347 - 256,667 - 190,977 Education 3,552,278 - 177,614 - 114,594 Arts 4,074,322 - 203,716 - 203,761 Academic Affairs 3,672,826 - 183,641 - 394,775 Library 2,273,941 - 113,697 - 113,697 Student Services 1,486,600 - 74,330 - 74,330 Enrollment Services 1,509,804 - 75,490 - 15,200 Chancellor 895,158 - 44,758 - 3,000 Admin&Fiscal Affairs/Facilities 5,683,406 - 284,170 - 284,170 University Advancement 725,382 - 32,269 - UITS

18,204,445 - - 38,585

University Tax and other items - -147,266 TOTAL 64,074,260 - 2,289,490 - 2,228,966 Remaining Deficit - (162,110) (222,634)

Budget Hearing Summary (cont’d)

• Not enough cuts were offered to fully meet the projected deficit for FY 2015-16

• Many units have already cut as much as they can over the past few years

• Further cuts will impact personnel – both faculty and staff

Budget Forum Summary

• The Senate Executive Committee organized a budget forum where faculty aired their concerns about the budget

• The budget forum took place on Friday 2/20 at 10AM – before the budget committee met to discuss the committee’s recommendations

• The forum was open to all faculty and staff• 26 people attended the forum

Budget Forum Summary (cont’d)

What the budget committee learned from the budget forum:

The faculty and administration are not seeing eye to eye on many issues

The following are some examples…

Budget Forum Summary (cont’d)

Administration• The campus needs to

cut spending to balance the budget. To do so, we have to address personnel expenses (the largest budget category).

Faculty• If further cuts are

necessary, we should look to other staffing areas, perhaps in administrative positions.

Budget Forum Summary (cont’d)

Administration• The campus needs to

become more efficient so that we are maximizing our resources and creating room for future growth.

Faculty• Efficiencies like

raising course caps can harm retention, especially in basic skills courses, and must be carefully implemented.

Budget Forum Summary (cont’d)

Administration• The campus can

benefit from centralization to streamline procedures and make strategic decisions.

Faculty• Campus procedures

are changing without faculty knowledge or consent. Faculty have less input on campus decision making.

Budget Forum Summary (cont’d)

Administration• The campus can

fulfill its potential and attract students by following the Academic Master Plan.

Faculty• The campus will

suffer by losing existing programs. The campus is focusing too much on new programs.

Budget Committee Recommendation

• The committee tried to weigh the information presented at the budget hearings AND faculty concerns shared at the forum to make recommendations for cuts.

• Since the offered cuts do not cover the projected deficit for FY 2015-16, the committee did not attempt to “meet the target.”

• Based on discussions at the forum and within the committee, we offer recommendations about future procedures.

Recommended Cuts

• We recommend specific cuts based on the following principles:– Avoid any cuts that directly impact students, such

as work study and hourly employment– Avoid cutting full-time faculty or staff positions

that are currently filled (See IU Policy ACA-52)– Protect Library Collection budget, since it is highly

subject to inflation

Recommended Cuts (cont’d)Unit Recommended Cuts

CLAS 423,538 Health Sciences 174,173 Business 159,392 Education 154,715 Arts 198,986 Academic Affairs 394,775 Library 12,097 Student Services 62,594 Enrollment Services 15,200 Chancellor 3,000 Administrative and Fiscal Affairs/Facilities 43,031 University Advancement - UITS 38,585 Line Items Not Included (Cut to Utilities) 147,266 TOTAL CUTS RECOMMENDED BY THE COMMITTEE 1,827,352 Remaining Deficit (624,248)

Procedural Recommendations

• We need a plan, not a crisis– We should strategically and minimally use the

reserve while implementing strategically planned budget realignment measures over the next 2-3 years.

– We should follow the official budget guideline and schedule budget hearings in the fall semester so that decisions are not made in a rush.

Procedural Recommendations (cont’d)

• Faculty need to be informed and involved– We should make use of existing senate

committees to address issues such as salary compression and reallocations of faculty lines.

– The faculty and staff would like more input into the implementation of the strategic plan, including campus priorities, values and vision; this input should, in turn, inform the budget.

Procedural Recommendations (cont’d)

• We need to communicate clearly– We request that the administration provide

regular updates to inform the faculty about the planned implementation of strategic initiatives so that faculty have the opportunity to respond.

– We request that the administration provide a follow-up to the budget hearing to clarify which cuts were ultimately adopted and why.

Submitted by the Faculty Senate Budget Committee

– Members (in alphabetical order):• Peter Bushnell (CLAS)• Karla Forsythe (Bi-Weekly)• Hossein Hakimzadeh (CLAS)• Larry Lambert (ARTS)• Rebecca Rankin (Professional)• Andrea Rusnock (Co-Chair; CLAS)• Rolf Schimmrigk (CLAS)• Kyoko Takanashi (CLAS)• Ganesan Vaidyanathan (Co-Chair; BUSE)• Bruce Watson (EDUC)