New budget again spends less overall while increasing student aid

June 23 2006

For the second year in a row, Indiana State University trustees have approved a budget that spends less money than the year before while continuing to increase funding for student financial aid.

A $132.3 million spending plan approved Friday for the 2006-07 fiscal year reflects a $628,000 reduction in spending from 2005-06. The reduction stems from a cut in state funding and a decline in enrollment.

State appropriations to fund general operations have been reduced by $2.1 million dollars for the fiscal year that begins July 1. Internal re-allocations enabled the university to balance its budget while providing an additional $722,000 in financial assistance to students, a 9 percent increase. The greatest portion of the $8.7 million ISU will provide in student aid will be awarded as direct aid to students.

The new budget also provides $70,200 for faculty promotions and degree adjustments and a $420,000 increase for Student Services.

ISU was able to achieve its target for budget re-allocations thanks to an eight-month hiring freeze and cooperation from all areas of campus, said university President Lloyd W. Benjamin III.

"The hiring freeze was well-managed and provided an opportunity to look more carefully at distribution of workloads," Benjamin said. "Thanks to this broad campus effort, we did not have to lay off any employees but we were able to achieve the necessary savings through attrition. The campus deserves a great pat on the back for everyone putting their shoulder to the wheel and getting us to a point where we are fiscally sound and in a position to move forward."

The board approved a two-year capital fund budget request that includes $14.8 million for renovations to life sciences and chemistry laboratories and satellite chiller capacity as well as $8.8 million for general repair and rehabilitation of university facilities.

Also on Friday, trustees authorized the university administration to develop and implement procedures for the administration of a new scholarship program that awards laptop computers to incoming freshmen who have a 3.0 grade point average or higher and meet certain other requirements.

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Contact: Teresa Exline, special assistant to the president for strategic communications and university spokesperson, Indiana State University, (812) 237-7783 or texline@indstate.edu

Dave Taylor, media relations director, Indiana State University, (812) 237-3743 or dave.taylor@indstate.edu

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Story Highlights

ISU trustees approved a $132.3 million budget for 2006-07 that reflects a nearly 5 percent reduction in spending from 2005-06. At the same time, the budget includes a 9 percent increase in funding for student financial assistance.

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