The University reserves the right to modify the appointment terms of Academic Professional and Academic Administrative (P&A) employees throughout the University system in order to address financial stringency, or within an individual unit in order to address financial urgency. Financial stringency is a system-wide financial impact effecting the overall University budget. Financial urgency is defined as a short-term (less than 24 months) local financial budget challenge for a specific campus, academic or administrative unit for which modification of P&A appointments is necessary due to a reduced amount of work available for P&A positions. The action of furlough or reduced appointment is to retain as many employees as possible while the unit manages through the challenge. Unit leadership is encouraged to exhaust all other measures before recommending financial urgency.
Specifically, the University may: 1) reduce P&A salaries or percentages of appointment during the term of an employee’s appointment; or 2) impose unpaid furloughs or other mandatory unpaid absences. All P&A appointments are made subject to this right regardless of funding sources and as permitted under federal regulations.
The President will determine whether a financial stringency exists that impacts the University system.
Unit senior-most leadership may make a recommendation for financial urgency with consultation of the Office of Human Resources. A recommendation for action under financial urgency will then be reviewed by the Vice President for Human Resources, the Senior Vice President for Finance and Operations, and the Office of the General Counsel. For academic units making a recommendation for financial urgency, this review will also include the Office of the Provost or Vice Chancellor.
The final decision on financial urgency will be made by the President. The authority to modify terms of appointment under this policy will reside with the vice president for the Office of Human Resources.
Any temporary modification of terms of appointment under this policy must:
- address financial stringency through a process that impacts all P&A appointments across the system, or address financial urgency through a process that impacts P&A appointments within an individual system campus, academic or administrative unit, department, program, or service.
- allow a minimum of 60 days advance notice to affected employees;
- retain employees’ existing health insurance benefits when possible;
- retain employees’ eligibility for Regents Scholarship when possible;
- consider possible public assistance programs for impacted employees;
- have a defined term, not to exceed two years; and
- be communicated to both PACC, through consultation, and directly to affected employees in a timely fashion in advance of implementation.
Reason for Policy
This policy allows the University to take extraordinary action to reduce personnel costs in the face of unusual financial difficulties facing the institution. It complements policies and provision for other employee groups.