Bloomington, IN – The Indiana University Board of Trustees has given its approval to a $4.2 billion operating budget for fiscal year 2023-24 during its June meeting. The budget, which goes into effect on July 1, includes a salary increase for IU employees, according to an IU press release.
The university’s 2023-24 budget is slightly larger than the previous year’s, reflecting increased expenses for labor, services, and other fixed costs, according to IU.
To mitigate the increased expenses, Indiana University has implemented budget reductions and alignment of administrative functions, said IU.
President of Indiana University, Pamela Whitten said, “IU’s operating budget will support our ambitious vision as we implement IU 2030, our seven-year strategic plan. Through the careful stewardship of IU’s resources and continued investment from the state, we will continue to support academic programs and research that transform our students and strengthen our communities.”
“Standard & Poor’s Global Ratings recently reaffirmed IU’s AAA credit rating, citing the university’s stable enrollment, excellent management of strategy and resources, and positive financial operations,” said IU.
One significant aspect of the budget is the inclusion of salary increases for IU employees. The approved budget allows for salary increases of up to 3% for university staff. Over the past five years, salary and wage increases at Indiana University have averaged 1.5%, according to IU. There was no university-wide salary increase in fiscal year 2020-21.
Many employees at IU will not get a 3-percent raise.
Meanwhile, the buying power of a 35,000 salary in the United States in January 2020 is now equal to a salary of $41,262.18 in May of 2023 according to the CPI inflation calculator at www.bls.gov, and that doesn’t take other factors, such as the higher cost of living in Bloomington compared to other cities in Indiana.
Bloomington is overall 4 percent more expensive than Indianapolis, but housing is 40 percent more expensive than Indianapolis, according to Bestplaces.net:
Bloomington is also ranked in the top 24 percent of most expensive cities in the world according to livingcost.org: