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From Bloomingpedia

Cutters can have several meanings, several of which are related specifically to Bloomington and the surrounding area. The term comes from the profession of limestone cutting. In modern usage it refers to a bicycle racing team that participates every year in the Little 500. The modern usage comes from the movie Breaking Away, in which the term is applied in a derogatory way to people from outside Indiana University. The 4 local bicyclists decide to proudly honor their heritage by wearing shirts that say "Cutters" on them.

Due to the popularity of the movie and the usage in the annual race, the word seldom carries a derogatory meaning with any more.

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