I'm really sorry this has happened to you. It may be a bait and switch situation, it may not.
It's especially distressing to hear that this has happened when you've been an understudy for this position for the last 5 years - a ridiculously long time, in my opinion.
I think the first thing you need to do is get a straight answer as to why the title on this position has been changed and the salary decreased.
They go hand in hand - I suspect that they legally couldn't decrease the salary without changing the title.
I don't want to discourage you in any way but I will tell you that in my experience, typically positions are leveled down when either the hiring manager, their managers or HR (or a combination of those folks) do not believe that the person they're making an offer to's experience is up to the level originally outlined.
That this would be the case after 5 years understudying that position, is ridiculous. Unless you are really bad at your job, I really can't imagine how that could be true. But that doesn't mean that they don't believe that.
The other potential reason that comes to mind is that you are currently being grossly underpaid and that even the minimum they would have to pay you for the position you originally applied for would be such a big bump, that they're choaking on giving you that big a raise.
Some companies also have a policy that your raise can only be up to a certain percentage.
I hate to be the one to tell you this, but it's possible that you will have to leave your current company to get the opportunities that it sounds like you have certainly earned.
Please let me know if you have any questions and please keep us posted on what you find out.
GOOD LUCK!!!
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