Michigan State Announces Pay Cuts After $50 Million in Losses Due to Coronavirus
“will also be reducing travel expenditures and other discretionary expenses”
It’s difficult to grasp how large the financial losses will be for all colleges and universities.
MLive reports:
Michigan State University announces pay cuts after coronavirus outbreak causes $50M in losses
Michigan State University President Samuel Stanley Jr. announced Thursday a series of budget reductions in response to the effects of the coronavirus outbreak.
In an email to staff, Stanley Jr. asked the university community “to continue to rally together as we face this challenge.”
All MSU executives will be taking a 2% to 7% temporary pay cut based on salary levels, Stanley Jr. said in the email. The cuts are anticipated to remain in effect through May or June, but could last “possibly a full year,” he said in the email. Stanley Jr. said he will personally take a 10% pay cut, effective immediately.
MSU will also be reducing travel expenditures and other discretionary expenses, including outside services, consulting, conferences and purchases, Stanley Jr. said in the email.
“While this is not a university-wide ban, I am counting on units to achieve meaningful savings from these reductions,” Stanley Jr. wrote in the email.
The university is also considering delaying or modifying several construction and remodeling projects and major equipment expenditures, the university told employees. A list of those projects will be shared following the completion of the university’s assessment and approval by the trustees, if needed, the university said.
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