Physical Plant prepares as cuts are under way

State budget shortfalls may force IU administrators to significantly adjust the University budget, but measures to cut costs are already under way.\n"An important aspect of all this is funding for academic programs as well as staff and faculty funding," Rep. Mark Kruzan, D-Bloomington said. "I am extremely concerned about the impact of state spending cuts on that aspect of the University."\nThe IU Physical Plant has started preparing for budget cuts. To decrease necessary staff cuts, officials plan to offer employees with 20 or more years of service an early retirement option, called the Voluntary Separation Incentive.\n"This program could solve 85 to 90 percent of the budget cuts we are facing," said Hank Hewetson, Director of the IU Physical Plant. "But even if the program is successful, we will still have to make some staff cuts."\nAdministrators decided to change to a single financial aid system at the end of last year, a move that will shave $1 million from projected costs. In 2004 all IU campuses will be under one loan system called the Federal Family Education Loan Program.\n"Running one system is just more cost efficient," Bill Ehrich, associate director for client services for the Office for Student Financial Assistance, told the IDS on Jan. 6, 2001. \nThe FFELP system uses banks, credit unions, and saving and loans to provide the funds for student financial assistance. \nThe current system of direct lending used by IU is cited for having faster delivery of financial aid funds, but FFELP is more responsive to interest rate changes.