Ball State University President Jo Ann Gora and her senior staff have had a busy month.
Between the Dec. 16 hiring freeze and Gov. Mitch Daniels' proposed 4 percent budget cut to higher education funding Jan. 8, the university higher-ups have been searching for ways to save money in 2009.
Randy Howard, associate vice president of finance and assistant treasurer, said Ball State is financially "well positioned" compared to other universities.
Gora and her senior staff, a group comprised of university vice presidents and other important officials, have had a series of meetings to determine short- and long-term solutions to the economic downturn.
Howard, who is in charge of Ball State's budget, said the meetings resulted in the hiring freeze for vacant and new positions and a search for each cabinet department to cut its spending by at least 1 percent.
"We know we aren't going to be spared some sacrifice as the financial situation continues to deteriorate," Howard said. "So, the immediate action that the university has taken is the hiring freeze."
Ball State has 55 faculty openings, including the deans of the Miller College of Business and Teachers College, according to its Web site.
Howard said exceptions to the freeze are limited, but new hires would require approval by the president's cabinet. New hires would be considered if the position's vacancy would affect the quality of education, Howard said.
Gora was unavailable for comment, but issued a statement outlining justification for the hiring freeze.
According to the statement, the freeze was taken to cut spending while limiting disruption to university operations and offer an effective short-term solution to reduce expenses.
"The impact on staffing will vary among colleges and departments," Gora said in the statement. "The impact of unfilled positions will be felt. This is not a scenario that anyone would have chosen. However, I'm confident that with the creativity and entrepreneurial spirit among our faculty and staff, we will be able to meet our goal of protecting the delivery of education and services that students expect."
These answers were implemented before Daniels made clear his want for a 4 percent slash of higher education funding, in addition to the 1 percent mid-year cut to operating appropriations in his biennial budget proposal Thursday.
Daniels' budget is expected to see harsh opposition by the Democrat majority in the Indiana General Assembly. The recent proposal is the first of many reforms made to the budget before it will go before its final vote this spring.
With Ball State's budget at about $300 million, a 1 percent cut to the operating appropriations would be about $1.3 million, Howard said. The proposed 4 percent cut would result in a loss of about $4.2 million.
Howard said the university is paying close attention to the economic situation.
"The state of Indiana compared to other states is actually in a pretty good position," he said. "We have a balanced budget with a surplus fund. Compared to others, we think Ball State University is in a pretty favorable position. For a long time we have looked at ways we can save money."
According to the Dec. 16 President's Perspective, an e-mail written by Gora announcing the hiring freeze, the university has reduced the cost per-square-foot for building maintenance, custodial services, utilities, landscaping and administration for the past seven years. They have moved to electronic documentation for capital projects and have recently moved to a single-source provider for office supplies. The e-mail also noted that "something as seemingly trivial as switching to foam hand soap has saved $17,000 a year."
Other Indiana colleges and universities are finding the need to cope with the cuts.
Indiana University is set to lose $4.9 million from the proposed reduction. Indiana University President Michael A. McRobbie has ordered a slowdown of hires and frozen the accounts of up to 400 of IU's senior administrators.
Ivy Tech Community College may take the biggest hit. With 14 branches throughout the state, the college depends on state funding to offer affordable programs.
Howard said the university has succeeded because of a good strategic plan and updated buildings.
"A lot of colleges have a lot of buildings that are old and crumbling," Howard said. "They have a lot of deferred maintenance and to the extent they have to weather the financial storm, it's just going to make it worse."
Howard said the university will not reduce anything that might affect the quality of education.
"We're not going to cut things that are going to affect the student, who acts as the customer," Howard said. "Especially when we have a good product."
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