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Daniels cuts merit raises of top Purdue staff

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Purdue University President Mitch Daniels on Monday eliminated merit raises for administrators earning more than $50,000 annually over the next two years in the first in a series of cost-cutting moves to cover the estimated $40 million cost of freezing tuition rates through 2015.

Purdue posted a letter from Daniels on his web page Monday saying the move will apply to senior administrators, deans and administrative and professional staff. It will save the university $5 million over the next two years, he said.

"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 the letter. "At Purdue, we will make our first goal affordability, accommodating our spending to students' budgets and not the other way around."

The merit raise elimination doesn't apply to faculty or clerical and service staff, Purdue said.

Other cost-cutting moves will be announced in the coming weeks and will address expenses and practices across all central university units, Daniels said. Every academic, administrative and auxiliary unit of the campus will be asked to closely examine all activities and their costs.

The cost of the tuition freeze represents 1 percent to 2 percent of the university's base budget over the biennium, Daniels said, and Purdue should be able to cut more than that.

"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 in his letter.

Daniels announced March 1 that it would freeze the cost of tuition at its main campus in West Lafayette over the next two years because of the lingering weak economy. The cost of basic in-state tuition there will remain about $10,000 a year until the end of the 2014-15 school year.

The last year without a tuition increase on the main campus was 1976.

Daniels became Purdue's president in January after completing two terms as Indiana's governor.

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  • Pay attention to the number of out of state students
    Anecdotally, I am hearing stories of bright kids being denied admission at Purdue. The parents claim it's because of the budget cuts, they can only afford to admit so many students at the in state tuition rate. Maybe it's just sour grapes. I don't have a large enough sample size. But, if the international student base continues to increase while the prez is "holding tuition down" it's really just a smokescreen and Indiana students will continue to be forced into higher cost options such as Rose Hulman.
  • discrimination?
    sounds like he is targeting the older and higher paid. trying to break them too? Ditch the Mitch!
  • "The Blade" is back at it
    My oldest kid went to Purdue for four years and his tuition went up, every single year, substantially, without any additional classes, services or benefits. And this was before the state really began to cut the increases in funding. Both undergraduate and graduate programs have gotten ridiculously expensive and many of the degrees do not have the value they once did. Daniels has his rivals, but I don't see how you can come out against this. Unless, of course, you work for Purdue. Remmember, he's not firing anyone and it's not like we have 6% inflation. I'll take action on him finding buckets of lard -- public universities have become huge bureaucracies which we pay for whether you're a taxpayer, student or alumnus.

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  1. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

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