Posted on 04/16/2020 12:37:46 PM PDT by be-baw
EAST LANSING, MI — 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.
The reductions will help address the impact the university has felt in fiscal year 2020 and help MSU prepare for the future, the email said. Revenue reductions and real costs are already in the $50 million to $60 million range for FY2020, the email said.
MSU has seen promising news in applications and deposits for the class of 2024, the email said, but international student enrollment is anticipated to be impacted due to travel restrictions and visa issues.
While Stanley Jr. said he’s optimistic the majority of changes will be temporary, he said the effects “will be larger and last longer” if the university delays taking action.
“I intend, with your support, to ensure that MSU remains a place where students are excited to enroll, where faculty and staff find fulfilling work and where our community outreach makes a difference every day in Michigan and around the globe,” Stanley Jr. wrote in the email.
MSU moved spring semester classes online March 11 and postponed commencement. It moved summer classes online as well.
A spokesperson for the university had no further comment beyond what was announced in the letter.
Meanwhile in the private sector, people that are not furloughed are taking 10-20% pay cuts and unlike the college that has defined benefit pensions that are rising, our 401k's lost 20-30%
They can try cutting absolutely useless majors that have zero value upon graduation, like gender studies and underwater basket weaving.
Their endowment has over 3 billion, look it up. They can handle a slight decrease in pay. Harvard’s is over 40 billion. What’s their gripe?
maybe they should tap their endowment funds, they could probably hire people and give the rest raises.
I believe the chinese virus shutdowns will end when the elites and state gov’t employees like at universities start to feel the pain.
Michigan State Univeristy Endowment: 3.03 billion USD
MSU has a defined contribution 403B pension plan.
Didn’t they employ Larry Nassar? They need to go bankrupt.
Is it bad enough that they have abolished all the completely useless “studies” departments and curricula and gotten back to teaching useful things?
If not, it isn’t bad enough yet.
I'll bet the 403b is an add on, usually state universities have multiple plans.
I'll take that bet.
Yoili’ll notice that absolutely NOTHING will happen to the FOOTBALL program...
Good for them, New York is still on the hook for billions in DB plans.
at least they still have jobs
A-holes. Tight budgets my ass
Pfffft! And in the fall students/parents/government will have to pay a 15% increase in tuition and fees.
2-7% cut right after they had an increase of 7% last year, my heart weeps.
From the article: “MSU will also be reducing travel expenditures and other discretionary expenses, including outside services, consulting, conferences and purchases, Stanley Jr. said in the email.”
As if this is not naturally happening already. I expect they have not been having any big conferences, retirement dinners, travel for sabbaticals, or some of the usual stuff that they must think is critical for the professors and tenured administrators.
Also, their cleaning needs, coffee expenses, gas for university-owned vehicles, etc. - just to name a few, must be drastically reduced lately. But no one will ask or suggest this, I expect.
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