Urbana University faculty, staff and administrators received an e-mail from Dr. Stephen Jones, president, on Tuesday, the first day of the spring session, informing them that most non-faculty staff will see a 6 percent reduction in compensation and that non-faculty staff earning $75,000 or more annually will see a 10 percent reduction in compensation Jan. 16 through Aug. 31.
Faculty members, under a contract that expires the end of May, are being asked to voluntarily have their compensation reduced by 6 percent.
"All of you know that our University entered its fiscal slump well in advance of the crisis now affecting universities across the region and nationally," the letter begins. It continues by noting enrollment shortfalls resulted in fiscal problems more than two years ago and that the university borrowed $1.06 million to meet budget at the end of the 2007-08 year.
"Before I was hired, the board made it abundantly clear to me that we would no longer borrow money to meet budget," Jones told the Daily Citizen on Tuesday. He said the debt is costing the university $61,000 a year and that borrowing money will not be an option in the future.
The letter states that the current spring enrollment numbers are not enough to handle expenditures for the rest of the school year, which is why compensation cuts were made.
Concerning "office consolidation and building closures" noted in the letter, Jones explained three buildings will be closing, probably 30 to 60 days from now. These buildings are Dorothea Harvey Chapel, Russell Eaton Hall and Edward F. Memmott Hall.
"This will be a first step. Other steps will follow," Jones said of building consolidation.
Christina Bruun-Horrigan, UU public relations, said closing buildings will save money, but that the primary purpose is to be energy efficient and reduce UU's "carbon footprint."
Jones confirmed that two non-faculty positions were eliminated Tuesday and noted the four positions eliminated this past fall also were non-faculty positions. He said the only faculty positions being considered for reduction are part-time adjunct positions.
"We're closely examining the number of adjuncts we hire on a contractual basis," he said.
Jones called the decreased compensations a temporary move that should end next fall, when enrollment figures are expected to increase.
He stressed these compensation adjustments affect everyone. "This applies to everybody, from the president to faculty and staff," he said.
"I look at this as the glass being far more than half full," he said. "This is a necessary step in the turning of the university from one that had to borrow money last year to one that is fiscally vibrant."
Jones noted in the letter to staff and to the Daily Citizen on Tuesday that other universities are facing tough times.
"There are a lot of other universities that are making a lot of serious cuts involving a lot more people than we are talking about, and serious reductions in salary," he said. "I believe the faculty and staff and administration are committed to the university and see the need to weather the storm."
Calling the reduced compensation a "proactive measure," Bruun-Horrigan agreed with Jones that this step is necessary to strengthen the university.
"The university has been here since 1850, and I'm convinced the university will continue to be a vital part of this community," she said.
A meeting for faculty, staff and administrators is planned for Jan. 13 to distribute compensation reduction allocation forms and information about what UU is doing to increase enrollment and revenue.
Kathleen Fox can be reached at kfox@urbanacitizen.com
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