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home : most recent : statewide implications December 12, 2017

12/2/2017 4:56:00 PM
IU budget forecast a warning that changes are needed

Michael Reschke, Herald-Times

NEW ALBANY — Financial models presented to the Indiana University Board of Trustees on Friday show the university operating at a net loss by 2021. By 2022, the loss is forecast at $58 million.

IU leaders assured the board there was no reason for alarm, as the prediction isn't new and is somewhat misleading.

University Treasurer Don Lukes presented the board with a similar prediction last year. At that time, the net loss was predicted for 2020, a year earlier. Lukes explained Friday the forecasts serve as a warning. 

"If we don't respond, here's what the results could be," he said.

Lukes boiled the situation down to the difference between tuition and wage increases. Tuition and mandatory student fees are the university's largest source of revenue, while compensation and benefits are its largest expense.

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