INDIANA – Ivy Tech Community College announced on Friday that it will lay off 202 employees statewide in response to significant state funding reductions and frozen tuition rates, including those at the Bloomington campus.
The decision, communicated by College President Sue Ellspermann, is a direct result of a projected $54 million shortfall over the next two years.
The layoffs impact both full-time and part-time workers, representing approximately 2.8% of Ivy Tech’s total workforce. Of the positions eliminated, 180 are full-time, constituting 5.3% of the college’s full-time staff. The reductions include 38 faculty members, 162 staff members, and two administrative staff members. The Bloomington campus will see 14 layoffs, comprising five faculty and nine staff members.
In a letter to employees, Ellspermann explained that a 5% cut in state appropriations to higher education institutions, compounded by an additional 5% in potential funding held in reserve by the State Budget Agency, contributed to the financial strain. “Because the college’s primary revenue sources are state appropriations, tuition, and fees, these developments have had an immediate effect on our planning,” Ellspermann wrote. “We have reached the difficult decision to adjust our staffing levels, in addition to efforts to reduce our operational expenses.”
Ellspermann emphasized the difficulty of these decisions, stating, “Staffing reductions are always difficult decisions that we do not make lightly. These changes do not reflect the value of their work, but rather the harsh financial reality we currently face.” Layoffs commenced Friday and are expected to continue into the next week, with the affected employees receiving separation packages.
The most significant number of layoffs is expected to occur at the college’s Systems Office in Indianapolis, affecting 44 employees. Other campus cuts include 21 staff members in Indianapolis, 14 each in Bloomington and Columbus, 12 in Kokomo, 11 in Evansville, and 11 in South Bend and Elkhart.
The financial pressure stems from recent state budget appropriations. The General Assembly allocated approximately $243 million for the 2023-24 school year and $245 million for the 2024-25 school year. However, the latest state budget will reduce this funding to about $236 million for both the 2025-26 and 2026-27 fiscal years.
In a separate communication to state lawmakers, Ellspermann assured that student services and academic quality remain top priorities and all 19 campuses across Indiana will continue to operate. She highlighted that Ivy Tech has no tenured faculty, allowing the college “the continued ability to adjust the size of our faculty nimbly as enrollment and industry needs fluctuate.”
Ellspermann also noted that Ivy Tech had previously implemented other cost-saving measures, including rolling technology fees into tuition and eliminating distance education charges, which resulted in over $9 million annually in lost revenue.
“This is a challenging moment for our college, but I know Ivy Tech is strong,” Ellspermann concluded. “I remain confident in our resilience and our commitment to our students and one another.”
