Budget cuts force USAO to reduce staff pay, benefits
FROM STAFF REPORTS
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Published: November 4, 2009
CHICKASHA — The University of Science and Arts of Oklahoma will trim benefits for all employees and implement furloughs and salary cuts for the remaining eight months of this fiscal year.
University
President John Feaver discussed the news Monday with employees at USAO.
"As these cuts from the state started coming in August, we tapped our reserves, then restricted travel budgets and cut spending,” Feaver said. "This next austerity measure is necessary to protect our people from layoffs or cuts to programs.”
To help make up a projected $360,000 cut in state allocations to the university this year, furlough days for staff will occur during the holidays in December and spring break in March.
In exchange, employees who earn less than $20,000 will surrender 1 percent of their annual salary. Employees who earn $20,000 to $29,999 will see a 1.5 percent cut. Employees earning $30,000 to $49,999 will lose 2 percent. Employees earning $50,000 to $59,999 will surrender 2.5 percent, and employees earning $60,000 and more will see a 3 percent cut.
Faculty will receive pay cuts but won’t have furlough days. Salary reductions took effect Sunday.
College officials also will suspend payments to annuities for all USAO employees. The benefit program was launched in the 1990s to enhance retirement benefits. The decision will not affect base retirement plans, but only the 5 percent annuity payments made by the university for its employees.
USAO officials said they hope to end the furloughs and renew annuity payments when the next fiscal year begins in July.
The university was asked to surrender $30,000, or 5 percent of its state allocation, in August. The cuts continued in September and October and are projected through the end of the fiscal year.
While USAO maintains a reserve above the 7 percent of its annual budget, state guidelines won’t allow it to absorb the annualized cut without taking stricter measures, said Mike Coponiti, university vice president for business and finance.
"More than 75 percent of our budget is people, their salaries and benefits,” Coponiti said. "After the brutal cuts to us and to most state agencies back in 2002, it took six years for our budgets to recover. We are in no position to absorb any more trimming now. Most office budgets for supplies, materials and travel have remained flat for a decade.”
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