Transcript Proposal for a Furlough FY2010 - PowerPoint presentation

PROPOSAL FOR A FURLOUGH
FY2010
An updated proposal from the Faculty Senate Committees on
Faculty Status & Economic Welfare and Retirement
Faculty Senate Economic Welfare &
Retirement
and Faculty Status Committees
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Tony Wilcox, Nutrition and Exercise Sciences, Chair, Faculty Status
Moira Dempsey, Academic Success Center
Lani Roberts, Philosophy
Cheryl Middleton, OSU Libraries
Shirley Dodsworth, Psychology
Wendy Hein, Youth Development Education
Cindy Alexis, Arts & Science Business Center
Justin Fleming, Motor Pool
Pat Ketcham, Student Health Services
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Nell O'Malley, Education, Chair, FEWRC
James Miller, Admissions
Alan Bakalinsky, Food Science & Technology
John Lee (Emer.), Mathematics
Demaris Garceau, English
Beth Wasylow, Counseling & Psychological Services
LeeAnn Baker, University Honors College
Ken Krane (Emer.), Physics
Henry Sayre, Art/OSU Cascades
A Furlough would:
1. Address the 13.2 million reduction
in E&G funding for the current
biennium
2. Allow units to retain as many
faculty positions as possible
3. Acknowledge the classified staff
who have accepted a tiered
furlough for the biennium
MOTION: OSU faculty support a Furlough for FY2010
that adheres to the following principles:
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For all faculty (grant-supported salary
exempt)
Exempting Grant-Supported
Salary
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Modeled after University of California system
OSU’s Carnegie research classification:
Research University – Very High Research Activity
o Only one in Oregon
o One of 96 in US
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Defining characteristic of OSU
Exceptional success: $250M in grants & contracts FY09
Why a Furlough?
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To exempt the portions of employee effort funded by
sponsored research funds, the University would need to
institute a furlough program rather than a program of
salary reduction with associated optional leave.
Under a furlough program, salary is not reduced; budget
reductions are achieved by requiring employees to take a
fixed amount of unpaid time off during the period of the
program.
It is permissible to exempt the portions of employee time
funded by sponsored research dollars from a furlough
program, but not from a salary reduction/optional leave
program.
The resulting effect on salary for affected employees would
be the same under either a furlough program or salary
reduction program.
MOTION: OSU faculty support a Furlough for FY2010
that adheres to the following principles:
• Tiered
Furlough Days
Jan. 1 – June 30
Furlough Days
Jan. 1 – June 15
(12-mo employees)
(9-mo employees)
$2,450 or less
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1.8
1.53%
$2,450 to $3,105
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2.75
2.30%
$3,106 to $5,733
3.5
3.2
2.68%
$5,734 to $8,333
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3.7
3.07%
$8,334 to $10,934
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4.6
3.83%
$10,935 and over
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5.5
4.60%
Monthly Base Salary
% impact on salary
Annual Base Salary
(12-mo employees)
Annual Base Salary
(9-mo employees)
% impact
on salary
$ impact
on salary
per month
$29.4K or less
$22K or less
1.53%
$37.50 or less
$29.4K - $37.3K
$22K - $28K
2.30%
$56.35 - $71.42
$37.3K - $68.8K
$28K - $51.6
2.68%
$83.24 - $153.64
$68.8K - $100K
$51.6 - $75K
3.07%
$176.03 - $255.82
$100K - $131.2K
$75K - $98.4K
3.83%
$319.19 - $418.77
$131.2K and over
$98.4K and over
4.60%
$503.01 or more
Projected Savings
$1.5 - $1.8M
28-33% of the $5.4M
Year 1 budget reduction
MOTION: OSU faculty support a Furlough for FY2010
that adheres to the following principles:
• Salary savings to be retained by the
University to preserve faculty
positions; priority placed on the
salary savings offsetting budget
reductions in faculty members’ units
MOTION: OSU faculty support a Furlough for FY2010
that adheres to the following principles:
• Pay reductions are distributed evenly in
monthly paychecks over the academic or
fiscal year (9-mo or 12-mo employees,
respectively)
• Other than for the temporary pay
reduction, other terms of employment
remain unchanged (e.g., base salary;
health insurance coverage eligibility)
MOTION: OSU faculty support a Furlough for FY2010
that adheres to the following principles:
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University administration is directed to advocate
to the State to amend PERS regulations to permit
preserving at their pre-salary-reduction level faculty
and staff’s retirement contributions for the duration
of the temporary pay reduction
• University administration is directed to explore
the possibility of using a holiday closure and other
mechanisms of cost savings to minimize reliance on
temporary pay reductions to offset budget reductions
MOTION: OSU faculty support a Furlough for FY2010
that adheres to the following principles:
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The furlough pay reduction is to begin
January 1, 2010 and end June 30, 2010;
before the end of this academic year,
University administration will consult
with the Faculty Senate to assess the
financial circumstances projected for the
second year of the biennium.
A Furlough would:
1. Address the 13.2 million reduction
in E&G funding for the current
biennium
2. Allow units to retain as many
faculty positions as possible
3. Acknowledge the classified staff
who have accepted a tiered
furlough for the biennium
Which employees would be subject to the Program?
The Program would apply to all unclassified employees,
regardless of percentage of employment (FTE), place of work,
or tenure status, except for those listed below:
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Proportion of faculty members’ time that is paid from
sponsored research funds; reduction pro-rated to the nonsponsored research proportion of the time
Faculty members who are partially funded from sponsored
research funds may increase the proportion of time paid
from those funds with permission from their granting
agency to devote extra work effort to research projects
Employees not subject to the Program (continued)
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Undergraduate student workers,
Graduate assistants
Clinical and postdoctoral fellows
Post doctoral scholars
Employees whose immigration status would be adversely
impacted
Faculty who have over the past few months voluntarily
reduced their tenure as part of the Partial Tenure
Relinquishment Program.
University Contributions to PERS and ORP
Retirement Plans
The Furlough Program would reduce contributions
made by the University on behalf of employees
as a result of the unpaid time off. The
contribution rate would not be reduced, but the
dollar amount would be less due to the unpaid
time off.
Would base annual salary rate be affected by
this program? No. The Program would
require employees to take unpaid time off,
which would not affect base salary rate.
Is this Program intended to be permanent?
No.
A Furlough would:
1. Address the 13.2 million reduction
in E&G funding for the current
biennium
2. Allow units to retain as many
faculty positions as possible
3. Acknowledge the classified staff
who have accepted a tiered
furlough for the biennium