Presidents' salaries rise with tuition

As state budget cuts across the nation force tuition hikes at public universities, cutting academic programs and faculty and staff positions, university president salaries continue to rise, drawing criticism from higher education officials.\nAccording to The Chronicle of Higher Education, Mary Sue Coleman, president of the University of Michigan system, is the highest paid president of a public university, earning $667,500 annually. Coleman's salary comes entirely from public contributions.\nUniversity of Texas system Chancellor Mark G. Yudof, the second highest paid public university leader, earns $642,052 annually. However, less than 11 percent of his salary is paid by public contributions. The other 89 percent comes from private contributions.\n"It's not going to be good for higher education if it becomes seen, at a time when tuition is going up, that college presidencies have become a new route to being a millionaire," Patrick M. Callan, president of the National Center for Public Policy and Higher Education, told The Chronicle.\nIU President Adam Herbert was hired by the University in June and earns $335,000 annually, $27,340 more than former President Myles Brand.\nAt the same time, IU increased the cost of tuition by 4 percent, raising the price for Indiana residents from $2657.33 in 2002-03 per semester to $2758.56 in 2003-04 and for out-of-state students from $7965.63 to $8276.06. A $1000 freshman fee was also tacked on both resident and nonresident new students.\nHowever, IU's tuition does not cover the president's salary like other schools, said Stephen Ferguson, vice president of the IU board of trustees. IU uses interest from its deposits to fund the Office of the President and pay the president. \nPresident of the IU board of trustees Fred Eichhorn said the trustees decide how much the University president will earn. They base their decision on the competitive market, how much the candidate earned at his or her previous job and how to get him or her to come to IU, he said. Eichhorn said the trustees also consider the quality of the candidate and the fit he or she will make with the University.\nTrustee Stephen Backer said Herbert's salary is not much in comparison to IU's budget. He said paying Herbert any less would not satisfy the position's demands.\nSenior Bettina Urcuioli said she does not think the money raised from higher tuition costs is going to the right places. She said the biggest change she's seen is the creation of the Main Library InfoCommons.\n"There are other ways to allocate money that would be really beneficial," she said. "One way is through scholarships. If they are going to charge more, they could provide more (to students)."\nA portion of the money students pay to attend IU goes to the school that the is student in, Ferguson said. This money helps pay faculty and staff salaries in that school.\nAnother portion of tuition pays for various services on campus, such as computer services and the Office of Admissions. \n-- Contact staff writer Stephanie Susman at ssusman@indiana.edu.