Indiana University braces for cuts of $100 million for fiscal year that begins July 1, 2025 1/2
Friday, June 27, 2025 6:00 PM
As Indiana University reels from cuts to state and federal government funding, it faces another budget challenge for the fiscal year that begins Tuesday —pressure from Gov. Mike Braun resulting in an in-state tuition freeze.
Tuition revenue is one of IU’s largest sources of income, making up about a third of its budget. For some schools, it’s more.
“Where is the money going to come from?” said Leah Shopkow, chair of IU’s Department of History.
Another question is where cuts will be made as campus awaits details of the full budget, which the university won’t release until August.IU will lose $60 million from the state and $40 million from the federal government.
At the Board of Trustees meeting earlier this month, IU Chief Financial Officer Jason Dudich discussed the cuts.The university will remove unfilled positions. Travel will be reduced, and retirement contributions will decrease by 1 percent.
IU said it’s making “deliberate and targeted reductions.” The university will release the full budget details in August.
“We do have a balanced budget, $4.5 billion coming in through revenue or utilization of cash, and $4.5 billion of expenses,” Dudich said.
The university is planning another phase of cuts, adding up to $200 million.
David Polly, chair of IU’s Earth and Atmospheric Sciences Department, said faculty didn’t expect cuts six months ago.
“It's serious in the sense that IU has always been, sort of, cutting it close to what we can afford,” Polly said.
Shopkow said potential losses will ripple throughout the university. She fears staff won’t be replaced if they leave.Plus, she said IU may not attract or keep young researchers because of changes coming from the state government and upper administrators.
“It cannot be business as usual,” Shopkow said. “When people ask me what I think is going to happen, my answer is nothing good.”
One thing made the cuts particularly hard for Shopkow.
After hearing the budget cuts on June 12, theBoard of Trustees awarded Whitten with a $225,000 bonus – the maximum allowed by her salary bump to $900,000. One person, student trustee Kyle Seibert, voted against the bonus.
“The people who teach courses are producing revenue,” Shopkpow said. “The staff and the departments are supporting that revenue-producing operation, you know, and these are the people who are being asked to, you know, bite the bullet here.”
Legislators cut at least 5 percent of higher education funding in a tight budget year.Then, Braun and the Commission for Higher Education requested tuition freezes for undergraduate students to make college more affordable for Indiana families.
“A month ago, we challenged our state’s public higher education institutions to find efficiencies, eliminate redundancies and identify ways to streamline services without compromising quality,” Braun said in a statement. “=The commitment made by all of Indiana’s public colleges and universities puts students and parents firstand demonstrates to the rest of the country that Indiana is a leader in providing a high quality education at an affordable price.”
IU spokespeople referred to statements made at the board meeting and news releases.
“Even amid reduced appropriations, we remain steadfast in our mission to deliver affordable, high-quality education to students from Indiana,”IU President Pamela Whittensaid at the meeting.
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