From Deseret News archives:
UVU offers voluntary retirement in light of budget constraints
"It's unfortunate that we have to reduce our work force at all but this is a way we can reduce our workforce by voluntary means," said UVU spokesman Chris Taylor. The university has already eliminated 23 positions and does not want to have to enforce additional job losses.
"Any person is one too many," Taylor said, adding that throughout the ongoing budget cutting process, efforts are being made to minimize the effect on people at the university, as 85 percent of its overall budget is spent on personnel costs.
UVU budget officials are hoping the enhanced voluntary separation incentive program will free up approximately $650,000, or 1 percent of what the state provides the school.
The option is being given to salaried, benefits-eligible faculty, executives and staff, and it allows them to receive a predetermined amount of money for choosing to retire early or walk away from their jobs at UVU. Qualified individuals must submit applications by Feb. 13, but UVU Interim President Elizabeth Hitch will make the final consideration concerning who is entitled to the severance.
The package incentive includes 25 percent of the employee's 2008-09 annual salary, not less than $12,000 and no greater than $20,000. Continuing medical insurance coverage can be had through COBRA, and the bonus can be applied to those costs. The termination agreement will be effective on a date of the current employee's choosing, between Feb. 28 and June 30.
Due to declining tax revenues in the state, Utah's governor has asked all colleges an universities to expect up to a 15 percent cut in their budgets.
The order has forced layoffs in many areas and additional job cuts are imminent throughout the state. During a legislative meeting Monday, university and college presidents told lawmakers that more than 1,500 jobs will be cut if they have to come up with additional funding to meet the state's shortfall.
Schools have already adjusted funding to reflect 4 percent budget cuts imposed in September.
The result was a $2.7 million cut at UVU, which eliminated vacant positions and any carry-forward balances. Campus facilities and hours of operation were reduced, as well as travel and capital project budgets. A projected 15 percent cut would require UVU to come up with nearly $10 million more, which Taylor said would have "a dramatic impact on UVU."
Although the schools are still waiting for an exact percentage for further cuts, proposals to come up with the money include layoffs as well as elimination of programming and entire degree offerings at some institutions in Utah. Taylor said it is fair that higher education is asked to tighten budgets, but the timing is all wrong.
"It's the students in the system today who will be the innovators and contributors to our economy tomorrow," he said. "When you cut higher ed, it hampers the state's ability to recover economically."
E-mail: wleonard@desnews.com
