Faced with an $8.9 million cut in state support, The University of Toledo Board of Trustees’ Finance Committee yesterday afternoon voted to recommend approval of a budget amendment that would allow the University to again balance its budget.
The full board will consider the amendment Monday, Sept. 21.
The budget amendment in non-hospital operations calls for savings of $1.9 million through the elimination of an undetermined number of vacant and filled positions, generation of $2 million with a 3.5 percent tuition increase in spring 2010, elimination of programs totaling $2.7 million, and a mandatory furlough program estimated to save the University $1.3 million.
Scott Scarborough, senior vice president for finance and administration, said more details on the furlough program would be shared soon; however, it is designed to include every employee. Furlough days, expected to be one or two, will be concentrated on times when students are not on campus and when hospital services are low. The furlough program must still be negotiated with the University’s unions.
Employees at University of Toledo Medical Center may have their number of paid holidays reduced, as opposed to furloughs, due to the fact the hospital never closes.
In addition to approving the budget amendment, which includes furloughs, the Finance Committee also unanimously approved a resolution authorizing a mandatory employee furlough policy and authorizing the president to determine if and when mandatory employee furloughs, including faculty, are necessary.
“I believe that it is very important that every employee participate in the furlough program,” said UT President Lloyd Jacobs. “This is a very challenging time economically, and we need everyone to be a part of the solution.”
The $2.7 million in program eliminations is comprised of $850,000 for restricted and clinical teaching lines, $550,000 in unused graduate student stipends, $350,000 for an early retirement incentive program, $300,000 for a perfect attendance program on the Health Science Campus, and $250,000 for discretionary administrative bonuses. Changes at the Crossings Dining facility also will save $400,000.
The budget amendment calls for UT Medical Center to cut $1 million through a furlough/holiday reduction plan, vendor consolidations and professional services contract management.