Some Purdue employees making more than $50K to get pay freeze

WEST LAFAYETTE, Ind. (WLFI) - Purdue University has made the move to freeze the salaries of deans, administrators and staff members who make more than $50,000.

On Monday, University President Mitch Daniels announced initial cost-saving measures to help increase college affordability and offset the $40 million financial impact of a two-year tuition freeze at Purdue’s West Lafayette campus.

Purdue will cut merit pay raises over the next 2 fiscal years for all senior administrators, deans and administrative/professional staff with salaries more than $50,000.

The initiative is expected to save roughly $5 million and will not apply to faculty and staff paid les than $50,000 per year, and all clerical and service staff.

"It has been too easy in higher education for institutions to decide first what they would like to spend, and then raise student bills to produce the desired funds. That approach has run its course," Daniels wrote in a letter to employees outlining the University's plans. "At Purdue, we will make our first goal affordability, accommodating our spending to students' budgets and not the other way around."

Daniels said more reductions and savings decisions would arrive in the coming weeks. He said they will focus on assessing expenditures and practices across all central University units and that every unit would be asked to closely look at all activities and associated costs.

Daniels pushed a focus on practices on campus that may have once served a purpose but no longer do so. He also encouraged taking opportunities to centralize functions that might be taking place in multiple locations.

All savings will be credited to a newly created Student Affordability and Accessibility Account, according to Daniels.

Daniels also said the expected $40 million budgetary impact from the tuition freeze represents 1 to 2 percent of the University’s base budget over the next two years and that the University should not only be able to meet that amount, but exceed it.

"I believe we should set our sights higher and work to create savings above the $40 million that can be used to augment our inadequate funds for scholarships and/or to extend the tuition freeze further," he wrote.

"With everyone's support and cooperation, we can assert boldly that, regardless of what others may do, Purdue will stay true to its land-grant mission, delivering the education our state and nation needs most to students from any income level or background."

The freeze on tuition and most fees was announced March 1, marking the first time since 1976 without an increase. Some students were excited and relieved.

"Now that I know how much it's going to cost me for the next two years, I can plan a little bit better with my money and everything," said John Epling, a Purdue junior.

"With loans and stuff, it can get really expensive and I'm going to grad school. I have to keep in mind the cost of that as well," said sophomore Maddie Hinen.

 But some students worry the saving costs, especially the merit pay freeze, may be held against them.

"I know that (faculty) have, obviously, put a lot more time and stuff into the students, so I'm kind of worried what that will do to the amount of time they spend in the future," said Gina Brescili.

But others understand the process.

"My money pays them so it would kind of make sense if they would freeze college prices and stuff that they would also freeze their income," said Epling.

Daniels said eliminating the merit pay raises is only the first step bridging the budgetary gap. He said more announcements will be made in coming weeks.