Facing lower state aid, Ind. Univ. cuts spending

AP News
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Posted: Dec 17, 2009 10:55 AM

Indiana University says it has made $177 million in cuts as it adjusts to Gov. Mitch Daniels' 6 percent reduction in state aid to higher education.

The university said Wednesday it will see about $1 billion in savings over the next decade as a result of the continuing university-wide cost-containment effort.

School President Michael McRobbie says the cuts won't harm the quality of academic and research programs on any of Indiana's campuses.

The university says the cuts include $98 million in recurring expenses and $79 million in one-time cuts.

The cuts include a salary freeze, reduced retirement contributions, lowered information technology spending, prescription drug spending reductions and debt refinancing.