University of Minnesota Furloughs Conditional on Financial Stringency

Financial Stringency?

What Does the Tenure Code Say About This?

From the Tenure Code:

4.5 Reduction Or Postponement Of Compensation. If the University or a collegiate unit is faced with financial stringency that does not amount to a fiscal emergency, the president may propose a temporary reduction or postponement in compensation to be allocated to faculty in accordance with a mathematical formula or similar device. If approved by the Faculty Senate or the appropriate collegiate assembly, respectively, and the Board of Regents, the recurring salary of all faculty members in the University or in the designated collegiate units shall be reduced temporarily in accordance with the formula or device. The reduction may not continue for longer than two years, unless renewed by the same procedure.

3. Interpretation of Section 4.5: Financial Stringency.

Financial stringency in section 4.5 is understood to mean financial difficulties that are unusual in extent and require extraordinary rather than ordinary responses. Section 11 may be invoked if the regents are “faced with the necessity of drastic reduction in the University budget,” reductions so severe that they may “threaten [the] survival” of the University. It is understood that the financial difficulty that would permit the president to propose temporary reductions or postponements in compensation under section 4.5 is less severe than the “fiscal emergency” outlined in section 11, but it is also understood that “financial stringency” should not be invoked to respond to foreseeable fluctuations in the University’s budget and finances.