COLUMBIA, MO (KCTV) – On Friday, officials at the University of Missouri said that they now have to make layoffs and pay cuts due to their budget shortfall.
“We have taken several actions — including reducing office and travel expenses, voluntary pay reductions among university leaders, and hiring restrictions — but we still find ourselves facing significant budget pressures and must do more,” said Mun Choi, UM System President and Interim MU Chancellor.
According to a press release, the budget pressures for MU include: “a $17 million withholding from the state; significant refunds to students for residential and activity costs during the current budget year, which ends June 30; and proposed cuts by the state for FY21 (July 1, 2020 – June 30, 2021).”
The release continues to describe the following changes as of May 1 (it includes both the university and MU Health Care):
• 49 layoffs, which include 32 layoffs in MU Health Care across management, administration, hospitals and clinics.
• No furloughs have been taken to date.
• School of Medicine faculty will have pay reduced by 10% to 30% for one to three months based on their salary structure. School of Medicine staff will take a 10% pay reduction for three months or a one-week unpaid furlough based on department needs.
• 195 MU employees have volunteered for pay reductions at an estimated savings of $800,000
• 390 UM System leaders, senior administrators and other employees have volunteered for pay reductions at an estimated savings of $1.5 million.
“We are grateful to those who have worked to support the mission of the university,” Choi said “We have the utmost respect for these employees and will provide services, support and transition packages during this difficult time.”
“It’s clear the effects of this crisis will present a long-term funding challenge for us and higher institutions across the country,” Choi said. “Temporary measures will not address the budget situation or protect the mission of the university. We must respond in fundamental ways, re-evaluate our structure and invest in priorities that are important to our future. This will mean re-alignment, restructuring and loss of positions.”