Budgetary Actions Update
NOTE: No further updates on the numbers below will be available after Aug. 14, 2020. Additional updates will be provided in the event that the university takes additional significant budget actions.
Cuts to the state budget along with student refunds for certain services have created significant budget pressures on the University of Missouri. As a result, administrators have put in place cost-cutting measures, including layoffs, furloughs, travel bans and spending restrictions. Information about personnel actions will be updated here each Friday afternoon.
For the previous budget year, which ended June 30, Mizzou officials worked to cover a $27.1 million budget gap created when the governor announced necessary state withholdings. Additionally, budget officials asked division fiscal officers to prepare for cuts of approximately 12.5% for the current fiscal year (FY21, which is from July 1, 2020 through June 30, 2021). Budget managers are currently using a two- to three-month window when reviewing budget decisions. As budgets are reviewed, changes could be requested.
It’s clear the effects of this pressure will present a long-term funding challenge for Mizzou and higher education throughout the nation. While temporary measures are necessary, they will not fully address the budget situation or protect the mission of the university. University leaders continue to re-evaluate university operations in a fundamental way and look for opportunities for positive structural change.
|Summary of Actions|
|Total Layoffs||200; total savings of $8.16 million|
|Total Furloughs||3,667; total savings of $4.41 million|
|Total Salary Reductions (includes voluntary and mandatory reductions)||2,381; total savings of $5.66 million|
|Contract Non-Renewals||33; savings $1.02 million|
- MU Health announced further financial actions this week.
Note: Because of the timing of those actions, numbers are not reflected in the above table.
The university, including MU Heath Care, reports the following:
- 579 MU employees (including MU Health Care) have taken or been scheduled to take furloughs to date.
- The president and interim chancellor’s offices at UM System and MU are restructuring administrative support in an effort to reduce duplication of duties, minimize costs and increase efficiencies. These actions include layoffs, reassignments and changing duties for certain staff.
- President and Interim Chancellor Mun Choi and Provost Latha Ramchand have convened the Program Audit and Restructuring Committee (PARC) to provide recommendations regarding academic restructuring on our campus. This program audit will allow the university to take a closer look at degree programs, academic units and other related entities to identify programs that can be modified, consolidated, suspended or discontinued.
The university, including MU Health Care, reports the following:
- 49 layoffs, which include 32 layoffs in MU Health Care across management, administration, hospitals and clinics.
- No furloughs have been taken to date.
- School of Medicine faculty will have pay reduced by 10% for one-to-three months based on their salary structure. School of Medicine staff will take a 10% pay reduction for three months or a one-week unpaid furlough based on department needs.
- 195 MU employees have volunteered for pay reductions at an estimated savings of $800,000
- 390 leaders, senior administrators and other employees across the University of Missouri System have volunteered for pay reductions at an estimated savings of $1.5 million.