For now, students aren't affected by the $15.2 million budget cuts — not by additional increases in tuition, room and board or student fees.
Student Government Association President Beth Cahill said she was glad to hear the cuts wouldn't affect students, but she got confused when they started talking about health care.
"I think it's the best possible plan," she said. "But I got tripped up when they presented that first chunk about health care and benefits. We represent the students, and it was good to hear they won't be affected by the cuts."
The only impact students will feel is a $25 graduation application fee, and graduate students will now have to pay $30 per credit hour instead of $8. However, these seemingly small costs are projected to generate $1.8 million for the university budget.
Eleven budget suggestions were presented Tuesday, a result of consolidation or elimination of some of the 20 ideas from the first forum. University Treasurer Randy Howard said some of the ideas, like eliminating the post office in the Student Center, which made $1 million last year, would not be very cost-effective.
Other suggestions on the table include eliminating some of the underused computer labs around campus and no longer televising Ball State basketball games.
Another budget-cutting opportunity is consolidating majors. President Jo Ann Gora said Academic Affairs is looking into consolidating courses that have consistently low populations. The smallest majors at Ball State include women's and gender studies, educational studies, geology, physics and astronomy. Gora said they're also looking into eliminating courses with less than the minimum 10 students in attendance.
Over half of the budget cuts, $7.8 million, will affect salary and benefits for new employees.
Employees applying for tenure next year will be considered current faculty and will receive the same benefits as they would normally receive.
The lone question asked at the campus forum on Tuesday was about retaining benefits for employees who are applying for tenure next year.
When the woman who asked the question heard she would receive the same benefits as current employees if she earns tenure, she smiled and said, "That's what I wanted to hear."
According to an April 2009 article in Chronicle of Higher Education, Ball State has a below-average ratio of staff per 100 students. Howard said this makes it difficult for the university to cut staff, but the hiring slowdown will continue.
Howard said salaries are a priority. The university is about to finish a year of stagnation in faculty pay. Next year, instructional staff will receive a two percent salary pool increase, instead of the four percent that was budgeted before the university was hit with a $15.2 million budget crunch. Division leaders will determine how to allocate the two percent increase in funds for salaries as they deem appropriate.
"While the increase is not where we would like it to be, it comes at a cost for additional cuts," he said. "We think it is important to our employees. In many areas, our salaries are below that of our peers, but this salary increase will in many ways further close the gaps."
For current employees, changes to prescription drug benefits, cost of health care and retiree benefits are subject to change. Budget cuts in these areas will be presented to the Board of Trustees on Friday for approval.
Gora said the changes aren't really as confusing as they seem. Employees have some options in the health care, prescription drug benefits and retiree health care plans they choose.
"Although the change sounds complicated, it really isn't," she said. "The plans are essentially the same. What's changing is the cost structure."
Tony Proudfoot, associate vice president for University Marketing and Communications, said the six-week window to determine employees' health care plan is coming up soon. In the past, employees had to maintain a health care plan for at least three years. In light of the proposed changes, Proudfoot said the university will allow employees to change plans this year regardless of how long they've been on their plan.
Howard said there will be an extensive campaign to educate employees on the health care changes through a series of handouts and meetings.
He said the Low Deductible Plan is the most popular health care plan among university employees and also the most costly to the university. He suggests faculty and staff consider the high deductible plan.
Among the seven public state universities, Ball State has the second most expensive low deductible plan. Ball State's deductible and out-of-network deductible are the lowest among these institutions. Officials have proposed increases of $100 to $1,000 in various areas of the low deductible plan. Areas of the high deductible plan have also been increased.
However, both are subject to increases. The out-of-network maximum for the low deductible plan will be increased from $2,000 to $3,000. The high deductible plan calls for a $500 increase in maximum network out-of-pocket.
Health care is funded 75 percent by the university and 25 percent by employees. Howard said if the cost of claims can be reduced, both parties will benefit.
Historically, more than 88 percent of the dollars spent by employees on network in-patient services were at hospitals that have agreed to the policy, Howard said. Joining the Encircle Hospital Network has allowed the university and employees to save money by going to doctors and hospitals within the network.
Employees are encouraged to join the Encircle network which will cover 80 percent of medical bills. Their coverage will be reduced to 70 percent if they use a physician in the old network Encore instead of Encircle. The plan will pay 50 percent of an employees's plan if they choose to go out of the networks for hospital service.
Changes to the prescription drug benefits include an increase in the out-of-pocket maximum from $1,000 to $1,500; this only applies to mail-order drugs.
Howard said many of the items will be implemented July 1, but others will take time to implement and analyze savings. Overall, the mandated budget cuts have been determined. The next step is approval by the Board of Trustees.
Chair of University Council Laura Helms said she was impressed with how the information was presented.
"I was concerned [about health care and benefits]," she said. "You're also concerned about those things. But I was struck by the plan. You can't argue with comparable data."
Breakdown of the budget cuts:
Salary and benefits- $7.8 million
Energy Efficiency- $0.2 million
Miscellaneous Fees- $1.8 million
Print management- $0.2 million
Non-instructional Missions- $1.1 million
Wellness Program $0.4 million
Increasing Summer Campus Usage- $0.1 million
Computer Technology- $0.3 million
Hiring Slowdown/ Freeze- $0.8 million
Academic Initiatives- $0.7 million
Athletics- $0.2 million
One Time Funding- $1.6 million
To view slides from the campus forum, go to bsu.edu.
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