MUNCIE – Ball State University’s board of trustees on Friday adopted a $345 million general fund budget for 2015-16 that includes no pay raises for President Paul Ferguson or his cabinet.
Ferguson and the cabinet opted to go without pay raises this year even though Indianapolis attorney Rick Hall, board chairman, said trustees were pleased with the administration’s dedication and “servant leadership” and had planned to give them raises.
“We determined that the faculty and staff should get those additional dollars for merit,” Ferguson said. “A significant hallmark of servant leadership is giving back. We believe in this university and want to provide an additional financial reward to our outstanding faculty and staff.”
The budget includes a 2-percent increase in funding for salaries plus additional funds for merit raises, promotions and travel.
Ferguson took over the presidency a year ago at a base salary of $450,000.
The university’s annual utility budget has been cut by $700,000 thanks to the new geothermal energy system that uses the Earth as either a heat source, when operating in heating mode, or a heat sink, when operating in cooling mode.
BSU Treasurer Bernie Hannon said the university will save more money when construction of the geothermal system is completed.