Salary freeze on table for officials

In an attempt to fight a revenue shortfall, IU President Michael McRobbie recommended suspending this year’s merit-based pay raises for senior administrators on Dec. 12 during a board of trustees meeting.

IU spokesman Larry MacIntyre said McRobbie hasn’t figured out precisely who will be affected, but it will likely be the vast majority of administrators making more than $100,000 a year. MacIntyre stressed it would not affect faculty who aren’t also administrators.

The freeze will affect 300 to 400 people across campus, according to a press release. MacIntyre said based on last year’s raises, the freeze would save the University $2 to $2.4 million.

Raises are typically awarded at the start of the fiscal year, but now there will be no 2009-10 raises for the people affected, MacIntyre said.

This, and an earlier mandate to think carefully before filling non-critical vacant positions, comes as the state finds itself more than $700 million short.

MacIntyre said he couldn’t predict if the state will give IU less this year than normal, but they’re using the bad economy as a sign.

Neil Theobald, vice president and chief financial officer, said 60 to 70 percent of IU’s $2.6 billion budget is salaries and benefits. He said last year the state gave IU $525 million.

“We have a lot of pressure on the revenue side,” Theobald said.

Many of the main sources of the University’s revenues, including endowment returns, state funding, contracts and grants are expected to decline.

Officials are trying to find ways to save money to keep the burden off of students.

“President McRobbie is very sensitive to the tuition issue and how it will keep IU affordable,” MacIntyre said.

Theobald said without a doubt there would be other cost-saving measures, saying everything possible would be done to hold down tuition.

“Any money we don’t spend we don’t charge in tuition,” he said.