| DATE: | June 7, 2018 |
|---|---|
| SUBJ ECT: | Authorization for Voluntary Separation Incentive Program |
| FROM: | Office of Finance and Administration |
| ACTION ITEM: | Yes |
BACKGROUND: State reductions in funding along with structural issues in the University budget have necessitated significant reductions in the 2018-19 fiscal year. An overall reduction of 16.3% has been recommended and a reduction of this magnitude will require the elimination of approximately 60 positions.
The University will develop a limited-time Voluntary Separation Incentive Program (VSIP). The University is taking this step in an effort to reduce salary, benefit, and wage costs in anticipation of these budget reductions. Additionally, this program will provide a way to redirect the allocation and appointment of positions at the University to maximize the University's ability to fulfill its mission on a continuing basis.
The program provides eligible faculty and staff with incentive compensation based on their annual base salary and completed years of service if they agree to separate from employment under the conditions of the program.
ALIGNMENT WITH STRATEGIC GOALS: Goal 3 – Increase the University’s Financial Strength and Operational Efficiency.
To align current expenditures with current and projected revenues, the University must reset expenditure levels in many areas. The VSIP will provide an additional opportunity to accomplish this goal while limiting disruptions of faculty and staff.