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IU considers extending pay freeze

BLOOMINGTON, Ind. – Indiana University officials say they haven’t decided whether to extend the school’s general pay freeze for another year after reductions in state funding.

The freeze ordered by university President Michael McRobbie has been extended into the current fiscal year, although administrators told campus units to set aside 2 percent of their budgets to either offset additional state cuts or to provide small salary increases.

“The president is carefully examining all of his revenue sources with the hope of maybe being able to recommend salary increases to the board of trustees,” university spokesman Larry MacIntyre told The Herald-Times for a story published Sunday. “That could come in August or no later than September.”

Most of the university’s nearly 20,000 employees statewide didn’t receive any pay increases last year, officials said.

The primary exceptions made were for faculty or staff members who were promoted or moved into new jobs, said Neil Theobald, the university’s chief financial officer.

“If you comb through the salary database, that’s going to be about 80 percent of any changes you will find in there,” he said.

Administrators also have made exceptions to keep some from leaving the university.

“We do not let other universities poach our stars, even during these tough economic times,” Theobald said. “If we have faculty or coaches that we want to keep here and have a legitimate offer from another institution, we’ll match that offer. These are people who would be a lot more expensive to replace than retain.”

State colleges and universities have made various cuts since Gov. Mitch Daniels in December ordered a reduction of $150 million, or about 6 percent, in state higher education funding through June 2011 because of shortfalls in projected state tax revenues.

Top pay

A review by The Herald-Times of Indiana University’s budgeted salaries for 2010-11 found 93 people working on the Bloomington campus or in university administration set to be paid more than $200,000 for the year.

Men’s basketball coach Tom Crean continues to top the IU salary chart with $600,000 in base pay. His contract, however, includes supplemental pay from shoe and athletic gear contracts, his radio show and other sources that puts his total earnings at $2.24 million.

The next highest-paid personnel unchanged from 2009-10, both in order and salary. They include McRobbie ($425,000); athletics director Fred Glass ($410,000); business professor and former business school dean Dan Dalton ($336,000) and current business school dean Dan Smith ($333,520).