“the university is estimating a $300 million loss for the next fiscal year”
There is more of this coming to many schools across the country.
Citing coronavirus, Michigan State University cuts pay for professors and faculty
Michigan State University is cutting pay for professors and other faculty members for at least a year due to coronavirus budget concerns, the university’s president announced Monday.
In a letter to employees, MSU president Samuel Stanley Jr. wrote that non-union faculty and academic staff would be subject to a temporary wage reduction depending on salary, ranging from .5 percent to 7 percent. The wage reductions will take effect Sept. 1 and remain in effect for at least a year, and do not currently apply to non-tenured academic positions.
Stanley cited budget implications from the coronavirus as the need for the temporary wage decreases, noting the university is estimating a $300 million loss for the next fiscal year.
“The Michigan Legislature has yet to decide higher education funding for the coming year, and as I mentioned previously, there is the risk of a significant decline in MSU’s state allocation based on forecasted large decreases in state revenue and new expenditures associated with the pandemic,” Stanley’s letter to employees reads. “Combined with other factors, this unprecedented situation is causing MSU leadership to make many difficult budget and employment decisions that affect the campus community.”
Other measures the university has taken to address expected budget deficits include deferring $77 million worth of capital projects and across-the-board budget reductions to save about $20 million.
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