[CED/CD/EAT] (Not all) Arizona universities roll out furlough, layoff, pay cut plans

Thu May 14 12:03:17 MST 2020

FYI...

Arizona universities roll out furlough, layoff, pay cut plans
[Universities in Arizona are grappling with mounting losses caused by the Covid-19 pandemic.]<https://www.bizjournals.com/>
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Universities in Arizona are grappling with mounting losses caused by the Covid-19 pandemic.

[cid:image002.png at 01D6296D.FADB52E0]<https://www.bizjournals.com/phoenix/bio/2711/Angela+Gonzales>

By Angela Gonzales<https://www.bizjournals.com/phoenix/bio/2711/Angela+Gonzales>  - Senior Reporter, Phoenix Business Journal
11 hours ago

As the Covid-19 pandemic is causing Arizona's universities and colleges to lose millions of dollars, some are implementing staffing cuts to make up for those losses.

University of Arizona is expecting to see a $250 million drop in revenue over the next 15 months through June 2021. So far, the Tucson-based public university has incurred losses of $58 million in fiscal 2020 and is projecting $97 million in losses by June 30, which is the end of its fiscal year.

Beginning July 1, the university will begin a furlough-based salary program for most employees, except anyone making less than $44,500, according to a letter Dr. Robert Robbins<https://www.bizjournals.com/phoenix/search/results?q=Robert%20Robbins>, president of UArizona, sent to staff this week. Specifics for the program<https://hr.arizona.edu/FY-2020-2021-Furlough-Program> will continue to be updated.

Ottawa University also has eliminated some positions across the university's system and all but its hourly personnel were asked to take temporary pay reductions, said Chancellor Kevin Eichner<https://www.bizjournals.com/phoenix/search/results?q=Kevin%20Eichner>.

Arizona State University is assessing all of the financial implications of Covid-19 but has not implemented any institutional furloughs, pay cuts or layoffs, said Katie Paquet<https://www.bizjournals.com/phoenix/search/results?q=Katie%20Paquet>, spokeswoman for ASU.

While its Flagstaff-based sister Northern Arizona University is ending fiscal 2020 with a balanced budget, President Rita Hartung Cheng<https://www.bizjournals.com/phoenix/search/results?q=Rita%20Hartung%20Cheng> is warning faculty and staff of significant revenue shortfalls for FY 2021.

"While we prepare to meet impending budget challenges, we are committed to being as transparent as possible about our decision-making process and the potential impacts to our faculty and staff," Cheng told employees in a letter. "We ask for your patience as our projections become clearer and the most optimal decisions come into focus."

For this fiscal year, NAU is not implementing furloughs or pay cuts, but instead is using efficiencies, a hiring freeze and federal stimulus funds, said Kimberly Ott<https://www.bizjournals.com/phoenix/search/results?q=Kimberly%20Ott>, spokeswoman for NAU.

Some teaching contracts aren't being renewed at NAU, according to one teacher whose contract was not renewed.

Jason Pistillo<https://www.bizjournals.com/phoenix/search/results?q=Jason%20Pistillo>, president of University of Advancing Technology in Tempe, said he is not implementing any pay cuts, pay freezes, furloughs or layoffs.

"Like all organizations, we are being cautious about our spending, but through years of preparation and surviving on our own for so long, we are confident we can navigate the troubled waters around us," he said.

The 10-college Maricopa Community Colleges system also doesn't have any plans to furlough or reduce its workforce, said Matt Hasson<https://www.bizjournals.com/phoenix/search/results?q=Matt%20Hasson>, spokesman for the community college district.

"Our chancellor has directed a task force composed of college presidents, faculty, administrators, and staff to begin looking at innovative cost-saving measures while also looking at ongoing ways to increase enrollment," he said.

Two universities hiring

Two universities that don't have any staffing cuts planned - Grand Canyon University and University of Phoenix - actually are hiring right now. In addition, GCU is giving across-the-board pay raises<https://www.bizjournals.com/phoenix/c/amid-a-slew-of-layoffs-valley-university-is-hiring.html>.

Both universities also are giving all of the CARES Act funding they received directly to students<https://www.bizjournals.com/phoenix/news/2020/04/10/phoenix-university-gives-entire-22-3m-cares-act.html>. The federal government only requires at least half of the CARES Act funding to go directly to students, but both GCU and UOP are giving all of their funding to students<https://www.bizjournals.com/phoenix/news/2020/05/09/university-of-phoenix-ramps-up-hiring-returning-to.html>.

The other universities have said they will dedicate the required 50% to students but will use the other half to help fund their operations and stem losses.

ASU, which received $63.53 million in CARES Act funding, received the largest chunk of funding out of all U.S. colleges nationwide<https://www.bizjournals.com/phoenix/news/2020/04/24/arizonas-largest-university-tops-nation-in.html>. The funding is based on the number of full-time Pell Grant recipients and enrollment. The Tempe-based university had nearly 75,000 students on its various campuses throughout metro Phoenix in fall 2019.

Here's what the other universities are receiving in CARES Act funding:

  *   University of Arizona: $30.95 million
  *   Northern Arizona University: $23.58 million
  *   Grand Canyon University: $22.35 million
  *   University of Phoenix: $6.59 million
  *   Ottawa University: $1.68 million
  *   University of Advancing Technology: $759,682
  *   Glendale Community College: $8.3 million
  *   Mesa Community College: $7.35 million
  *   Phoenix College: $4.77 million
  *   GateWay Community College: $2.71 million
  *   Scottsdale Community College: $2.39 million
  *   Rio Salado Community College: $2.53 million
  *   South Mountain Community College: $2.1 million
  *   Paradise Valley Community College: $2.59 million
  *   Chandler-Gilbert Community College: $4.35 million
  *   Estrella Mountain Community College: $4.86 million.

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