UI budget-cutting strategy gains some traction

In its last meeting of the fall semester, the University of Idaho Faculty Senate discussed progress on measures to address a budgetary shortfall expected to balloon to $22 million by 2022.

In an early move to curb expenses, the UI announced last month that it would offer separation incentives to employees who may be considering leaving the university or retiring early.

UI Vice President for Finance and Administration Brian Foisy told the senate as of Tuesday afternoon, 61 people have applied for voluntary separation and 93 have applied for optional early retirement. Similar incentives were offered more than 10 years ago and 157 people took advantage of the programs, which he said means it is likely a much larger number applied. He said the deadline to apply for both programs is Friday.

“I suspect the participation will fall short of the 157, but the rumor that’s circulating widely is that many people have expressed interest, or raised their hands, just to keep (their) options open,” Foisy said.

In order to qualify for voluntary separation, an employee must have worked for UI for at least 10 years and, if approved, will receive 33 percent of their 2019-20 salary upon departure.

The optional retirement program has been extended to employees older than the age of 55 who have spent 20 years with the university and who do not already have an approved retirement plan. Those approved for retirement incentives will receive 20 percent of their 2019-2020 salaries annually for the next five years.

Separation payments for both programs would begin in early July — the start of the UI’s 2021 fiscal year.

Foisy told the senate Tuesday he expects to have personalized letters that would constitute an offer from the university for separation sent to all applicants by Dec. 20. He said those employees will then have 45 days to consider the UI’s offer. After signing, employees age 40 and older will have an additional seven days to reconsider, meaning the process will come to a conclusion in early February.

Faculty Senate Chairman Terrance Grieb said the February time frame will coincide with the collection of reports from each of the college’s deans regarding other targeted cuts and priorities.

“Then we can put all those numbers on the table and decisions will have to be made, probably in early February,” Grieb said.

In addition to the $22 million deficit, Idaho Gov. Brad Little has asked all state agencies to reduce their budgets for the current fiscal year by 1 percent and to reduce budgets for the coming fiscal year by another 2 percent. UI administrators have asked eligible employees to consider taking as many as five days of voluntary furlough in direct response to the cuts.

UI leaders have said in the past that numerous other cost-cutting solutions are being considered, including layoffs and salary reductions, as well as the elimination of academic programs and outsourcing certain in-house facilities services.

“I will say this much, the one semester that I’ve had to work with President Green, I have been consistently impressed with his willingness to listen,” Grieb said, adding that Green commonly consults him for faculty input. “We’ve really got a dialogue going with the administration. No dialogues are perfect and decisions are hard, but I really think that we stepped up to the plate as a body to address these issues.”

Those who have additional strategies to generate revenue or achieve cost savings can submit their ideas directly to the office of the president at /www.uidaho.edu/president by Jan. 1.

Scott Jackson can be reached at (208) 883-4636, or by email to sjackson@dnews.com.