The following policy, approved by the Board of Regents, governs financial exigency at the University.

Financial exigency which justifies the termination of tenured faculty or staff is an imminent financial condition which seriously jeopardizes the quality of the University's academic program and the ability of the University to fulfill its obligations to the public. Projections of enrollment, or instructional subsidies, and of other sources of revenue must indicate that the shortage of funds will be both severe and persistent. The Board of Regents must find that institutional operations within such budgetary constraints requires a reduction in personnel such that tenured faculty or staff must be terminated or laid off, or probationary faculty must be terminated or laid off prior to the end of their respective appointments. Such a reduction in faculty or staff positions shall be deemed required only if, in the Board's judgment, it will have an effect substantially less detrimental to the institution's ability to fulfill its mission than with other forms of budgetary curtailments available to the institution.

The Board will review the faculty ratios in each degree program as well as the cost per student for each academic course. If it is determined that budgetary conditions, governmental mandate or economic currents have resulted in reduced student enrollment within certain colleges, schools, units or programs then the Board may eliminate or curtail such college, school, unit or program.

Any time a financial exigency is declared; the President shall designate or create a standing committee approved by the Board to consult with the President. The committee shall consist of faculty and staff members who represent the various academic and administrative units of the University. The faculty members shall be chosen from a list of faculty members provided to the President by the Faculty Senate and the staff members shall be provided to the President by the Rotating Advisory Committee or such other committee as is designated as the official representative of all University staff members. The committee shall act as the representative of the faculty's and staff's interest in both their personal and professional concerns for the University's programs.