Modifying Appointments of Academic Professional and Academic Administrative Employees for Financial Stringency or Financial Urgency

Responsible Officer
Ken Horstman
Vice President, Office of Human Resources
Owner
Ken Horstman
Vice President, Office of Human Resources
Primary Contact
Mani Vang
Director of Employee and Labor Relations
Last Revised
Effective Date

Policy Statement

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.

Authority

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.

Implementation

Any temporary modification of terms of appointment under this policy must:

  1. 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.
  2. allow a minimum of 60 days advance notice to affected employees;
  3. retain employees’ existing health insurance benefits when possible;
  4. retain employees’ eligibility for Regents Scholarship when possible;
  5. consider possible public assistance programs for impacted employees;
  6. have a defined term, not to exceed two years; and
  7. 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.

Procedures

Forms/Instructions

Appendices

Frequently Asked Questions

There are numerous questions that arise under circumstances of financial stringency and modifications to appointment terms mandated to address such situations. Questions and answers will be made available at those times that address the specific actions taken by the University.

Contacts

Subject Contact Phone Email
General Information OHR Contact Center 612-624-UOHR (8647) [email protected]

Definitions

Financial Urgency
Short-term (less than 24 month) local financial budget challenge for a specific system campus, academic or administrative unit, department, program, or service for which modification of P&A appointments is necessary due to a reduced amount of work available for P&A positions.
Financial Stringency
System-wide financial difficulties that impact the overall University budget and are unusual in extent, requiring extraordinary rather than ordinary responses.
Furlough
Mandatory time off of work, without pay. Furloughs allow the University to save on salary and benefit dollars to be used in meeting budget challenges under times of financial stringency or financial urgency.
PACC
P&A Senate Consultative Committee

Responsibilities

Financial Stringency

Vice President for the Office of Human Resources
Authorizes actions taken under this policy in response to financial stringency; implements a communications plan to provide timely notice to affected employees.
President
Determines whether a financial stringency exists.

Financial Urgency

Unit Senior-most Leadership
Consults with the Office of Human Resources, Office of the General Counsel, Senior Vice President for Finance and Operations, and the campus senior-most academic leadership, such as the Executive Vice President and Provost or Vice Chancellor, as required on recommendations for financial urgency.
Vice President for the Office of Human Resources
Authorizes actions taken under this policy in response to financial stringency or financial urgency; reviews and approves the recommendation for financial urgency; implements a communications plan to provide timely notice to affected employees.
Office of the General Counsel
Reviews and consults on recommendation for financial urgency for academic units.
Senior Vice President for Finance and Operations
Reviews and approves recommendation for financial urgency.
Executive Vice President and Provost or Vice Chancellor
Reviews and approves recommendation for financial urgency for academic units.
President
Reviews and approves recommendation for financial urgency.

 

History

Amended:
October 2021 - Major Revision. (1) Provides for financial urgency within an individual unit as a reason to modify appointments. (2) Modifies the definition for financial stringency to specify that its situation impacting the University system.
Amended:
October 2018 - Comprehensive Review, Minor Revision. Removes redundant effective date from the policy statement, and updates, contact information, responsibilities and titles.
Effective:
June 2010

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