Rutgers University president undertakes steps to address emerging financial crisis
Rutgers University President Robert Barchi is taking urgent steps to mitigate the financial effects of COVID-19.
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According to Barchi, the University anticipates a shortfall of $200 million in their budgeted revenues over the remainder of their fiscal year that ends June 30. Barchi is recommending to the Board of Governors a 2021 budget that freezes undergraduate tuition and fees at their current levels.
With this in mind, the chancellors, executive vice presidents, and Barchi, as well as the athletic director and the head coaches for football and men's and women's basketball in New Brunswick, will take a 10% reduction in salary over the next four months. The vice presidents, provosts, vice chancellors, and deans who comprise the administrative council, as well as the entire leadership team for Athletics in New Brunswick, will take a 5% pay cut over the same period.
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The university is also undertaking a number of additional steps to address their emerging financial crisis:
All plans for new capital construction projects will be stopped and all active projects will be reviewed.
All discretionary spending related to university operations including hiring consultants, conference expenses, and other items is suspended.
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The ban on university-sponsored travel will continue until further notice.
The hiring freeze, announced earlier this month, will also continue until further notice.
Non-contractual pay increases will be prohibited until further notice.
The university, in parallel with discussions with union leadership, will urgently explore all available and necessary personnel options, including furloughs, reductions in force, and further wage freezes.
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