Furloughs, Hiring Freeze Hit U of I

Chicago - The University of Illinois plans to furlough 11,000 employees and freeze hiring, moves are designed to trim $82 million from the budget and relieve a financial crunch caused by a $436 million in unpaid state appropriations.

Even so, school officials announced, layoffs may still be needed.

University President Stanley Ikenberry made the announcement in an e-mail Tuesday to faculty and staff. He called the state’s financial picture “grim and worsening” and said it requires the university to take actions to mitigate the impact of an escalating financial crisis.

Faculty and academic professional staff will take four furlough days -- temporary leaves without pay -- between Feb. 16 and May 16, a release from the school said. Monthly pay will be reduced by one day for each of the four payroll periods.

The president, chancellors and other senior administrators will take 10 furlough days between February and June. Their pay will be reduced by two days each month during that five-month period, according to the release.

Exceptions include employees whose annual base salaries are $30,000 or less; graduate assistants and fellows; employees retiring no later than Aug. 15; and individuals paid 100 percent from grant or contract funds. Civil Service employees are also not included.
“We have struggled this year to avoid furloughs for faculty and staff, but that is simply no longer possible,” Ikenberry said in his message.

More than 70 percent of the university budget is for personnel, according to the release. The furlough program will impact more than 11,000 employees and is expected to save $17 million. Employees will participate through automatic payroll deductions.

The program is designed to meet short-term needs and is not expected to prevent layoffs, according to the release.

The action affects all three campuses -- Urbana-Champaign, Chicago and Springfield -- and affiliated sites throughout the state.

Ikenberry also announced the university is declaring a freeze on all hiring and interim wage increases. Exceptions requiring approval of the chancellor and president include offers extended before Jan. 4, commitments required to support specific research and contract activities, and emergency compensation adjustments.

The U of I has received only seven percent ($51 million) of its state appropriation since the start of the 2010 fiscal year in July 2009, the release said. The amount owed the university, $436 million as of Dec. 31, increases each month.

“At some point we will be unable to meet payroll and complete the academic year unless there are significant payments from the state as promised,” Ikenberry stated.