What Exactly Does Condition of Financial Stringency

at the University of Minnesota Mean?

550.000 Financial Stringency

The content of this page applies to UEA employees on the University of Minnesota, Duluth campus.

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550.100 Financial Stringency.

Financial Stringency is understood to mean financial difficulties that are unusual in extent and require extraordinary rather than ordinary responses. Fiscal Emergency 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 survival" of the University. It is understood that the financial difficulty that would permit the President or Chancellor to propose Financial Stringency is less severe than Fiscal Emergency as described above, and it is also understood that Financial Stringency should not be invoked to respond to foreseeable fluctuations in the University's budget and finances.

550.200 Reduction or Postponement of Compensation.

If the University of Minnesota, Duluth is faced with Financial Stringency, the President or Chancellor may propose a temporary reduction or postponement in compensation to be allocated to faculty. If such condition is declared for the University of Minnesota, Duluth by the Regents, the Association and the Employer shall Meet and Negotiate, in accordance with PELRA, a temporary reduction or postponement in the compensation of UEA bargaining unit members in accordance with a mathematical formula or device. In such negotiations, the administration shall provide the documentation that justifies the declaration of Financial Stringency. Such reduction or postponement may not continue for longer than two years, unless renewed by the same procedure.

So let's see. Financial Stringency is going to be invoked so that a nominal pay raise of 2.3% can be given. This will result in furloughs.

Is the Morrill Hall Gang going to provide the Faculty Senate with documentation that justifies the declaration of financial stringency?

Robbing Peter to pay Paul does not exactly "threaten survival" of the university.