IU South Bend Financial Sustainability Initiative

Financial Sustainability Initiative

In order to address our immediate revenue shortfall projections for FY22 and FY23, to develop a sustainable budget that is realistic for our current enrollment, and to position the campus to exceed the goals we have set in our new strategic plan, we must identify a strategic path forward. While we must urgently address our immediate shortfall projections, we will need to create a multi-year plan for reaching our goal of long-term financial sustainability by the end of this academic year.

We are at an important moment in IU South Bend’s history. We have an opportunity to re-imagine our campus – how we collaborate and operate – to best serve our students and our region. The campus has a strong and proud history of serving our region as a driver of intellectual, economic, and social development, and we will persevere. However, we must be honest and resourceful as well as creative and innovative, holding the institution and its future above all else. The status quo is not an option, and everything must be examined as we navigate this uncertain but opportune territory.

In general, our human resources are our most valuable resource and our largest budget expense. All units should review the workload of every position with the goal of considering strategic adjustments that are in line with our priorities but also that result in new efficiencies. We need to take a hard look at ways we can improve processes, but also what we can eliminate doing or do in a better way. We cannot do more with less and need to make appropriate adjustments while staying true to our priorities, focusing on revenue generation and our core mission. We need to maximize the use of vacancies from resignations and retirements so we can realize new efficiencies and minimize the need for reductions in force, although that may be an option we must exercise in selected cases. Every vacancy is an opportunity to consider shifts or reductions in workload as well as possible unit restructuring.

The following strategies will guide our approach in both the short and long term to address the above challenges by reducing our operational size, reducing the overall cost of instruction, and ensuring financial sustainability. Each Vice Chancellor has been assigned responsibility for leading implementation of the strategies below, in collaboration with the campus community. 

1. Maximize use of buildings and spaces to concentrate use and enhance efficiency of support services. This means examining our class scheduling and other building uses to more strategically deploy our physical resources. (VCAF/EVCAA/RCIO)

2. Realize energy savings by modifying how we manage lighting, heating, cooling, etc. (VCAF)

3. Restructure schools and colleges to achieve administrative and operational savings. (EVCAA)

4. Restructure/reduce the number of departments/units across campus to achieve operational savings. (All VCs)

5. Create new organizational partnerships across campus to reduce redundant functions and build flexibility for future growth. (All VCs)

6. Re-vision staff support from structural to functional (e.g., instead of one person per unit, move to people supporting key functions such as travel, purchasing, etc.); enhance internal shared services and IU shared services. (All VCs)

7. Establish tighter controls on spending. (VCAF)

8. Reduce the direct cost of instruction in every program, which can be done in a number of ways (EVCAA). The most immediate opportunities are: 

  1. Implementing a faculty “capacity” workload model 
  2. Reducing the number of low enrolled course sections
  3. Increasing course caps

9. Reduce employee FTE through (All VCs):

  1. Voluntary workload reductions 
  2. Other workload reassignments 
  3. Evaluate positions as people resign or retire
  4. Reductions in Force, as a last resort

10. Create additional revenue centers/opportunities across the university through fundraising, new programs (e.g., summer programs), grants and contracts, partnerships, etc. (All VCs)

By mid-March 2022 each Vice Chancellor will submit a report on recommended action steps regarding each of the above strategies that includes: 

1. Which strategies are recommended for implementation this semester and inclusion in the FY22 budget?

2. Which strategies are recommended for FY23 implementation and inclusion in the FY23 budget?

3. Which strategies are recommended for implementation in FY24 and inclusion in the FY24 budget?

We must make significant progress with respect to each of these strategies and corresponding budget adjustments during FY22 and FY23. Some of the strategies will take time, engagement, and process. It may also be possible that partial or initial implementation can occur in FY22 and/or FY23, with other aspects of the strategy occurring in FY24. For strategies that cannot be implemented this semester or in FY23, Vice Chancellors are asked to describe the reasoning for delaying until FY24 in their report. 

In addition, to the above, these strategies to be implemented are: 

  1. Continuing to reduce the direct cost of instruction in every program using the following (EVCAA): 
    1. Minimize unfunded course releases 
    2. Curricular revisions that address bottlenecks, sequencing, perpetually low enrolled courses, etc. 
    3. Reduce the number of high DFW rate courses

2. Process improvements (e.g., LEAN). (All VCs)

3. Outsourcing of select services. (VCAF)

4. Academic Portfolio Assessment, Redesign and Optimization, including redesigned and new programs, certificates and credentials; consideration of delivery options (in person, online, hybrid), alternate schedules (evening/weekend), as well as other creative degree sequence models (3:1, etc.) all with an orientation to the needs/interests of our specific student populations (minority, adult, transfer, etc.). We must position ourselves towards high growth, demand, and innovation with an eye towards generating revenue and effectively utilizing our resources. (EVCAA) 

5. Enhanced use of real estate assets. (VCAF)

A report on the feasibility and implementation timeline of these additional strategies will be due sometime during the Fall 2022 semester, unless they can be included in the mid-March report.  

Engaging the Campus Community

It is important that we take a collaborative approach in implementing these activities. The best solutions are the ones we generate together.

The campus community will also be engaged through existing committees and councils, including the Campus Budget Advisory Council, Academic Senate Executive Committee, Academic Senate Budget Committee, Staff Council, and Student Government Association.  Engagement will also take place throughout the spring semester through Coffees with the Chancellor, Pizza with the Chancellor (for students) and Deans and Directors meetings.

Campus Budget Updates

Chancellor Elrod regularly provides updates on the campus budget at Coffee with the Chancellor. You can revisit these presentations below.

Ideas Generated from the Coffee with the Chancellor

At the February 2022 Coffee with the Chancellor, members of the campus community brainstormed and shared on three questions in response to ten strategies outlined above:

  1. What are some ideas you have for us to make the permanent changes we need to reach these targets?
  2. What are the challenges we might face?
  3. What ideas do you have to help us navigate and manage change?

The campus community contributed amazing ideas both in person and on Zoom. These ideas are linked below, both thematically, and in their entirety. Sticky notes are presented through photographs, while ideas shared on Zoom are presented as virtual sticky notes. Themes were presented to Campus Budget Advisory Council at their February 23 meeting for discussion. Information collected will be used by campus leaders and the Campus Budget Advisory Council throughout the Financial Sustainability Initiative.

February Coffee Budget Strategy Theme and Results

Feedback Portal
Have another idea for change, challenge we might face, or how we can manage the change process?  Have a question about our Financial Sustainability Initiative?  Submit it here.