McRobbie says credit crisis will not halt plans

INDIANAPOLIS – Uttering the words of Herman B Wells, IU President Michael McRobbie said he will “make no small plans for Indiana University” during his first-ever State of the University address Tuesday.

McRobbie delivered the address at IU-Purdue University Indianapolis about his goals and initiatives, commending progress made and adding to his already ambitious plans – even in the face of a credit crisis.

“It has been a record-breaking year,” McRobbie said.

In the speech aimed at faculty and staff, he said the past year was the best ever for external research funding, with $525 million. But half of the money came from government sources, he said, and with the current international financial crisis, funding might be harder to come by in the future.

Because of the economic crisis, returns on endowments – a major source of income for the University – might fall flat or even decrease. He also said studies have shown philanthropic giving decreases in the face of an economic crisis, though only slightly.

“A significant decline in interest income may require us to postpone or slow down planned spending,” he said. “This will impair our efforts to address crucial programmatic and facility needs across the university.”

He applauded those in charge of IU’s financial security, such as the University Treasurer MaryFrances McCourt and Vice President for Finance Neil Theobald, and said they were able to look ahead – making sure many of IU’s investments are free of stifling conditions imposed on many other universities because of the crisis.

Still, he asked all University units – especially administrative ones – to slow hiring in non-faculty positions.

But he plans to push on with his goals, stressing the need to prioritize, to have “relentless but responsible optimism.”

He spoke about the need for more space for research and teaching. He also covered the construction plans of buildings on every campus for business, information technology, life sciences and the arts.

He discussed the increase in minorities, international students, students studying abroad and in-state students enrolled at IU this year, as well as stressing the need for students to have international experience.

“International experience is quite practically a necessity,” he said.

McRobbie announced that the New Frontiers in the Arts and Humanities Program, which gives money to scholarship and creativity in humanities projects, will be expanded for an additional five years. The program is funded with $1 million each year.

He mentioned the University’s need to be more sustainable but said there was only so much that could be done. He suggested the University could do more through research – breakthroughs could lead to more and better ways to keep IU and the world sustainable. John Minor Ross, professor of informatics at IU-Kokomo, said McRobbie is doing a nice job of looking back as well as forward.

He did a good job of giving credit to faculty, staff and donors, he said.

But what Ross said he liked best was McRobbie’s attempt to find what’s best for the University.

“He’s looking,” Ross said.