A total of 121 University of Toledo employees are participating in the Voluntary Separation Incentive Program that will provide the institution more flexibility as it finalizes its operating budget for the 2017-18 academic year.
Of the approximately 230 faculty members and 250 staffers who met the requirements for the program, there were 121 employees who applied and were confirmed eligible to separate from the University as of June 30.
“These individuals provided great service to the institution throughout their careers, and we thank them both for their tenure with UT and their willingness to participate in this program to better position the institution’s finances in the coming years,” said Larry Kelley, executive vice president for finance and administration, and chief financial officer.
The employees will receive an incentive equivalent to one-half of their base salary on a one-time basis in exchange for their voluntary separation from the University.
In the first year the University anticipates a savings of $4.8 million from the voluntary separation program, which will grow to $8.4 million the following year without the incentive payment. The voluntary separation program combined with the elimination of funding for positions that have been vacant for nine months or longer will result in total first-year savings estimated at $9.3 million, Kelley said.
The Voluntary Separation Incentive Program was one of a number of budget initiatives to reduce costs and generate new revenue. UT also is experiencing growth in enrollment, adopting a new parking system, instituting fees for recreation center memberships, reducing cell phone stipends, and adopting a new winter break schedule.