Temporary Furloughs, Salary Reductions Planned
With revenue down more than 60% due to COVID-19 restrictions, some auxiliary services units face the tough task of reducing personnel costs.
NC State will enact temporary furloughs and temporary salary reductions for some employees in auxiliary units due to a sharp reduction in revenue resulting from the COVID-19 pandemic.
Units that provide auxiliary services, such as University Housing, NC State Dining, Transportation and the McKimmon Center for Extension and Continuing Education, rely on the sale of goods and services to fund their operations. So far in this fiscal year, revenue is down $75.4 million in affected auxiliary units. State law does not allow the university to use tuition or state appropriations to cover revenue shortfalls in these units.
In a message to faculty and staff Thursday, Chancellor Randy Woodson, Provost Warwick Arden and Vice Chancellor Charles Maimone, who oversees finance and administration, said managers have taken a number of steps to cut expenditures since the COVID-19 pandemic forced NC State to reduce campus operations in March.
“Auxiliary units have worked diligently to consolidate services; reduce hours; close facilities; enact hiring, travel and spending freezes; renegotiate service contracts and, where possible, transition from in-person services to alternative online services,” they said.
Unfortunately, additional actions are necessary to meet the budget challenge, they said, including both partial and full furloughs. Employees on partial furloughs will have reduced work schedules during the month, while those on full furloughs will not report to work. Furloughed employees will retain some benefits.
University Human Resources is providing support to affected employees through a call center, a dedicated website, information sessions and individual consultations.
Managers will meet with employees in the affected units to discuss specific actions.