UMSL Budget Planning

To address the FY20 deficit, UMSL took a number of immediate measures to reduce expenditures including implementing strict limitations on spending, hiring restrictions, reducing non-essential capital spending, and canceling of contracts as appropriate.

In preparation for FY21 budget planning, UMSL sought to identify $23.3 million in operational expenditure reductions based on the following assumptions:

• $6.3M - Reoccurring budget shortfall
• $4.4M - Investments in units - faculty and staff compensation
• $1.2M - Benefit increase of five percent
• $4.7M - Elimination of online fees assessed to students
• $4.7M - Anticipated state appropriations withhold

Each college, school and division leader prepared budget reduction scenarios ranging from 5 to 20 percent for consideration, allowing the university to ensure that cuts would not be made across-the-board. Instead, throughout the process, budgetary decisions focused on a set of systemwide priorities established by the president and chancellors:

• Ensuring our students receive a high-quality education.
• Supporting retention and recruitment of our students.
• Continuing sponsored research and scholarship, especially related to the public health crisis and precision health.
• Supporting the university’s response to the public health crisis and other engagement activities.
• Supporting activities that grow revenues for the university.

Numerous groups and individuals were consulted during this process, including unit leaders, Finance and Administration, University Budget and Planning Committee, and Human Resources with final decisions being made by the chancellor and her senior advisors.

The unfortunate truth is a budget reduction of this magnitude required some form of workforce reduction including layoffs, unpaid leaves and temporary salary reductions. Employee compensation accounts for about 74% of operational expenditures. 

Beginning June 1, 2020, the university enacted a university-wide salary reduction that affects just over half of our faculty and staff, including those in grant-funded positions, based on the following distributions. Data as of May 19, 2020:

These reductions were planned for up to 12 months, but was assessed every three months given evolving budgetary impacts. In total, this action would realize an annual savings of $4,386,893 (Staff share: $1,559,165 / Faculty share: $2,540,028 / Deans share: $287,700). Q&As for payroll reduction measures are posted at HR-710 and HR-720. Based on state funding and federal stimulus funding, the university ended the temporary pay reductions effective February 1, 2021.

All measures taken are governed by HR-710 Payroll Reduction Measures for Administrative, Service and Support Employees for staff or HR-720 Policy on Salary Reductions for Faculty and Other Academic Appointees for faculty. In addition, several actions have specific policies available at the UM System website:

• Temporary Pay Rate Reduction
• Temporary FTE Reduction  
• Short-Term Furlough
• Long-Term Furlough
• Seasonal Leave of Absence
• Excused Absence without Pay
• Layoff and Transition Assistance
• Termination

Layoffs and terminations are reviewed on a case-by-case basis in collaboration with Human Resources

Layoffs and terminations involve a planning meeting/review with HR to review, case-by-case, the operational justification (layoffs), proper disciplinary process (terminations) and equity (all separations) of the decisions.

This layoff/termination planning review typically includes:

• Articulating the specific operational decisions (program elimination, consolidation, reorganization, workload reductions, etc.) that are driving the need to lay off employees.
• Exploring less severe measures (other open jobs on campus? Temporary FTE reduction, etc.)
• Reviewing the list of employees selected for layoff based on specific operational decisions being made with each College, School and Division. 
• When multiple employees within a job classification are impacted the employees will be selected for layoff based on the following:
  • Abilities (Performance)
  • Skills
  • Training
  • Length of Service (All these being equal, length of service would be considered and the least senior employee would be selected).
• Avoiding a disproportionate impact on any protected group (race, color, ethnicity, national origin, gender, age, disability status or veteran status). 
  • All employees within jobs are reviewed and the CSD is expected to justify why they selected the employees (e.g. who are doing the same work) they did based on reasons that are consistent with their operational decision or documented performance issues.

During remote work, departments are accountable for adjusting staffing and scheduling based on actual workloads

Staffing and scheduling decisions (furloughs, temporary FTE reductions, etc.) have typically impacted entire departments (e.g. Facilities) or entire job groups (e.g. Maintenance, Custodial) and have not been subject to case-by-case review because they impacted every employee within those groups.

We expect to share an outline in late spring.

Yes. This form allows you to easily sign up for future pay reductions at 2%, 5% or 10% for up to three months. Please keep in mind that these actions will not eliminate the need for other steps to reduce payroll costs during this unprecedented pandemic and the related financial uncertainty. Those who volunteer may still be subject to other measures, which include furloughs, layoffs, salary reductions or other actions.

Yes. We will post links to view Zoom video recordings as meetings take place.

• UMSL Budget and Planning Committee Meeting: Friday, April 17, 2020
• UMSL Budget and Planning Committee Meeting: Friday, April 24, 2020
• UMSL Budget and Planning Committee Meeting: Friday, May 1, 2020
• UMSL Budget and Planning Committee Meeting: Friday, May 8, 2020

Yes. UMSL Chancellor Sobolik hosted a livestream at 2 p.m., Friday, May 29, where she provided an update on university budget planning including where we have been, what we have accomplished to date, and new insights into the unprecedented financial challenges that are to come. Additionally, updates on academic, faculty, staff and student initiatives were shared as well as reorganizations and other areas related to the university’s response to the public health crisis. Marie Mora, provost and executive vice chancellor for academic affairs, and Tanika Busch, interim vice chancellor for finance and administration and CFO, joined the chancellor. Questions and topics of interest were solicited from the UMSL community prior to the livestream, which leadership will also address. View the livestream recording.