(AP) - Indiana University is on a trajectory to be operating at a net loss
of about $70 million by 2021, the school’s treasurer told the board of
Treasurer Don Lukes
told the board last week that the financial issues weren’t unexpected, the
(Bloomington) Herald-Times reported.
“Last year, the
numbers were rather similar,” Lukes said.
Trustees asked if
celebrating the school’s bicentennial in 2020 was still feasible and if
construction projects should be postponed. IU President Michael McRobbie
said plans are flexible and could be scaled back, if needed.
appropriations are down this year to about 18 percent, while student fees
and tuition were up to 38 percent.
Shoulders said that when he was a student at the university in the 1970s,
state appropriations accounted for about 70 percent of total revenue.
“It’s become a
political rallying cry that college must remain affordable. All the while,
there’s relatively less state support,” Shoulders said.
asked if IU can still accomplish goals it has set for itself in the next
four years. IU vice president and chief financial officer John Sejdinaj said
yes but “we have to work at it.”
Lukes also included
several ideas into his presentation to the board for how IU can avoid a
budget shortfall, which included increasing retention rates. According to
Lukes a 1 percent increase in the university-wide freshman retention rate
would bring in $6 million. Other strategies included, increasing enrollment,
tuition as well as identifying new operation efficiencies.