The Indiana University Board of Trustees approved a $4.5 billion operating budget for fiscal year 2024-25 during its June meeting, including a salary increase for IU employees.

This year’s budget total is greater than last year’s, reflecting in part a strong growth in outside research engagement through increased grants and contracts.

“IU is making strong investments in areas such as the growth of research and entrepreneurship; faculty and staff talent recruitment; and student success and support, including increased financial aid,” IU President Pamela Whitten said. “These strategic outlays are closely aligned with the goals of IU 2030 and reflect a careful stewardship of the university’s limited resources in service of key priorities.”

Standard & Poor’s Global Ratings reaffirmed IU’s AAA credit rating, citing a stable enrollment profile, including solid demand with a broad geographic draw; excellent management of strategy and resources; and positive financial operations. These factors also informed Moody’s recent reaffirmation of the university’s Aaa rating, the agency’s highest rating.

The budget includes salary increases of up to 3 percent for IU employees, the third year in a row with a 3 percent increase. Over the past five years, salary and wage increases at IU have averaged 2.2 percent, including no increase in FY2021 due to the pandemic.

The budget goes into effect July 1.