Policies & Procedures

Budgets

Consultative Procedures to be Followed in the Event that Cuts in Programs and/or Salary Lines Become Necessary - 5A2

1. The Faculty Senate, Student, and University Staff Senate of Southern Illinois University Edwardsville designate the University Planning and Budget Council as the representative body of the University which shall be consulted in the event that cuts in programs and/or salary lines become necessary.
   
   
2. In the event that general reductions in the level of support of university programs appear likely because of an inadequacy of financial resources, the Chancellor of the University should consult with the University Planning and Budget Council prior to effecting such reductions.
   
   
3. The University Planning and Budget Council, or a committee of it, shall develop, in advance, strategies to be used in the eventuality that a financial crisis develops.
   

Charge of the University Planning and Budget Council

The University Planning and Budget Council has responsibility for developing constituency positions on fiscal policy appropriate to the University and for continuing review of efforts to accomplish the University's mission and goals. The University Planning and Budget Council is authorized by the Chancellor of the University to obtain information relating to University finances directly from appropriate administrative officials.

The University Planning and Budget Council, or a committee of it, serves in an advisory capacity to the Chancellor of the University in the event that cuts in programs and/or salary lines become necessary. This Council, or a committee of it, will interact directly with the Chancellor of the University and/or members of the Administration in an effort to reach the best possible decisions concerning the utilization of the University's resources in the event of a financial crisis.

General Guidelines

The decision to make reductions in programs and/or personnel should not be a unilateral one. Instead, it should be a decision made by the Chancellor and his staff in consultation with, and in concurrence with, the University Planning and Budget Council. The Council will decide whether to call for additional consultation with the constituencies and will decide the procedures to be used in communicating recommendations and information to the faculty and staff.

Insofar as possible, the strategies to be used in financial crises should be determined in advance. These strategies should recognize that some courses of action are less painful and less damaging than others. They are listed below in rough order or priority.

1. In general, people are far more important than "things" so far as programs are concerned. Consequently, expenditures for equipment, telephones, renovations, even books, should be cut to an absolute minimum prior to eliminating people who have contributed, and will continue to contribute, significantly to the development of the University.
   
   
2. Do not fill vacated positions except in cases where programs would be critically damaged. In some cases, it may be possible to relocate and retrain employees from within the University, thereby avoiding laying off a current employee while hiring someone else.
   
   
3. Exercise caution in adding new programs. Unless a new program justifies a reallocation of funds and can be mounted without the addition of new personnel, it is very difficult to justify in times of financial stress.
   
   
4. Encourage early retirement by guaranteeing a part-time position if necessary.
   
   
5. Eliminate administrative increments over base salaries.
   
   
6. Reduce supporting budgets in personnel lines to the extent possible without serious damage to the academic programs. This should be done by normal attrition insofar as possible.
   
   
7. Close units whose functions may be eliminated without seriously damaging academic programs.
   

The existence of a serious financial situation that may result in cutting programs and/or personnel requires reasonable, responsible principles, and humane responses that will be understandable by the faculty and staff. With regard to laying off faculty, the well-known and widely-respected principles of the American Association of University Professors and the Association of American Colleges should be followed; with regard to other employees, the procedures that are generally accepted by organized labor, affirmative action groups, and civil service should be followed.

Within the context of an existing fiscal exigency, every effort possible should be made to avoid laying off personnel. If it becomes necessary to cut personnel, the generally recognized principles of laying off the least senior employees (in terms of service to the University) first will be followed as long as it is feasible to do so and still preserve the integrity of vital academic programs. With regard to faculty, it should be understood that cuts in personnel will be made according to the following priorities:

1. First, term appointees;
   
   
2. Next, continuing appointees; and,
   
   
3. Finally, tenured faculty.
   
   

Approved by Chancellor effective 7/17/91
This policy was issued on November 12, 2002, replacing the February 1, 1996 version.
Document Reference: 5A2
Origin: OP 1/7/80; OP 7/17/91