Indiana State University faces US$3.9M budget cut for 2025-2026; president Godard announces salary freeze and delayed capital projects

April 30, 2025 (Indiana Statesman (Indiana State University)) –

In an email sent out to faculty and staff shortly after 1 p.m. on Tuesday , University President Mike Godard announced several financial adjustments that Indiana State will have to make as a result of the budget that the Indiana General Assembly approved last week. Godard also addressed the wider community in a video that was posted on the Indiana State YouTube channel.

The biggest impact of the new budget, Godard said, is that all public universities in Indiana will see a 5% reduction in the base operating funds that are given to them by the state government for the 2025-2026 academic year. For Indiana State , this means the loss of $3,898,016 . That level will stay the same for 2026-2027 academic year, which Godard said would give the university time to plan for further reductions, which are likely to occur.

“While the final budget differs from our initial hopes…it presents an opportunity for Indiana State University to reaffirm our resilience, creativity, and collective strength,” Godard said.

Another impact of the budget reduction is that new capital project funding, such as funding for renovations to Holmstedt Hall and Root Hall, will not be provided during this financial cycle. Indiana State will continue to receive Repair and Rehabilitation funding, which funds essential maintenance projects. This change delays the Indiana State Campus Master Plan that Godard spoke about in the Sept. 12, 2024 issue of the Statesman.

Additionally, Godard’s announcement said that, due to the budget reduction, Indiana State will not be able to provide salary increases during the 2025-2026 academic year. Godard said the university would protect existing positions to the best of their ability.

“We remain committed to exploring future opportunities for employee compensation enhancements as conditions change,” Godard said.

In response to the financial losses, Godard highlighted steps the university would take to deal with reductions, both in the short and long terms. For immediate actions, he wrote that the university will prioritize essential hires, tighten discretionary spending, and emphasize “effective academic scheduling” to make the best use of faculty. For long-term strategies, he wrote that the university will explore streamlining the administration, invest in new ways to grow enrollment, and focus efforts on “core mission activities.”