From: DePaolo, Rosemary

Sent: Monday, May 18, 2009 9:23 AM

To: FAC&STAFF

Subject: Budget Update

Dear Faculty and Staff,

Probably seeing an email from the chancellor lately causes you to wince, thinking that more bad budget news is coming.  I certainly can understand that reaction, but I also know that it’s important to keep everyone apprised about the latest budgetary developments and the most up-to-date information available about the issues confronting us: reductions in force and job reassignments, furloughs, the ½% pay reduction.

During our recent campus budget forums, I stated that our goal was to work toward a zero reduction in force (RIF), assuming a 7% budget reduction.  Ideally, we don’t want to lose members of the UNCW family. To accomplish that goal, I asked the Vice Chancellors, Chief of Staff and Human Resources department to develop a plan to reassign those UNCW employees, whose positions would be lost in the reduction plan, to existing vacancies before resorting to a reduction in force plan.  I am pleased to report that we have been successful thus far in achieving the goal. I need to add this caution, however: the state’s revenue projections continue to decline, and we believe it is likely that the reductions could exceed 7%.  If this happens, additional reductions will be unavoidable and may include more furloughs and/or a reduction in force.  I want to assure you that UNC administrators and our legislators are working hard to make the best decisions possible, given the level of these reductions. Earlier this week, UNC General Administration shared information describing how reductions in excess of 7% would seriously impact the UNC campuses.  That data can be viewed on the UNCW Business Affairs Web site at http://www.uncw.edu/ba/finance/Budget/09-11BudgetCuts.html.  Please remember that these are only scenarios. Again, once we know something more definitive, I will share that with you directly.

As we intensify our efforts to keep all UNCW staff employed, address the impending budget reductions and fill critical positions left vacant far too long by this year’s hiring freeze, I have authorized the start of a reassignment process for those individuals whose positions will be negatively affected by impending budget cuts.  Over the next few weeks, supervisors will advise individual employees who are being reassigned so that a smooth and thoughtful reassignment process can be coordinated with the receiving departments. Our ability to respond positively to this challenge is important to our success as an institution, so I am counting on each of you to welcome these new individuals to your respective departments.

Now let me address the furlough decision by Governor Beverly Perdue.  As you know, the governor signed an executive order several weeks ago that required furloughs for all state employees.   The order stated that all teachers’ and state employees’ compensation would be reduced by an annualized amount equivalent to ½% for the current fiscal year.  In the intervening weeks, we have been seeking clarification for the many details that the broad order did not address, the terms and conditions of these furloughs are regulated by the Office of State Budget and Management, and many aspects of the directive remain under development.  The uncertainly of this statewide mandate has  added a level of  anxiety and frustration, but our UNCW Human Resources department is working hard to clarify and communicate information as quickly as it becomes available.  Let me offer what we do know at this time:

· For most faculty and staff, the ½% annualized reduction will be divided equally between the May and June pay checks.  This actually equates to a 3% reduction to each of those two paychecks.

· For temporary faculty, we are required to deduct the entire ½% annualized reduction from only the May paycheck. 

· Summer school pay for permanent faculty is exempt, and therefore, summer school faculty will not have their summer compensation reduced.

· For all other temporary employees, Human Resources will be sending guidance to individual budget managers and HR liaisons.

I know that for many of you, the suddenness of the reduction to your May and/or June paychecks will cause personal challenges.   I have, therefore, asked our Human Resources department to identify and compose a list of resources within the greater Wilmington community that might help you through these difficult times. I have asked that this information be posted to the Human Resource Web page as quickly as possible.  I truly wish there were more we could do.

Recently, we learned that each institution has been given the flexibility to implement the 10-hour furloughs in a manner that best helps the institution achieve its budget reduction goals.  In response to several UNCW faculty and staff suggestions, we believe we can realize the greatest savings by closing down the campus for an entire day. This option will allow the university to regulate building temperatures over an extended period of time, thereby achieving some savings on our utility costs. The university is seeking feedback from the Faculty Senate and Staff Council on this option, and we will have more information in the near future.  Meanwhile, additional information about furloughs can be found at http://www.uncw.edu/hr/flexible_furlough.html.

Finally, I personally want to thank each of you for the positive spirit you continue to maintain during these challenging times our university is facing.  I appreciate the many ways in which you continue to help the university.  Thank you for your readiness to help those individuals in our campus community who particularly have been challenged during this economic downturn.  I am touched every time I see and hear about the many ways people on our campus have come to the aid of their colleagues.  UNCW is an extraordinary community, and I am very proud to be a member of the Seahawk family.

Best regards,

Rosemary DePaolo