PROPOSAL FOR A FURLOUGH FY2010

1. PROPOSAL FOR A FURLOUGHFY2010 • An updated proposal from the Faculty Senate Committees on Faculty Status & Economic Welfare and Retirement

2. Faculty Senate Economic Welfare & Retirement and Faculty Status Committees • Tony Wilcox, Nutrition and Exercise Sciences, Chair, Faculty Status • Moira Dempsey, Academic Success Center • Lani Roberts, Philosophy • Cheryl Middleton, OSU Libraries • Shirley Dodsworth, Psychology • Wendy Hein, Youth Development Education • Cindy Alexis, Arts & Science Business Center • Justin Fleming, Motor Pool • Pat Ketcham, Student Health Services • Nell O'Malley, Education, Chair, FEWRC • James Miller, Admissions • Alan Bakalinsky, Food Science & Technology • John Lee (Emer.), Mathematics • Demaris Garceau, English • Beth Wasylow, Counseling & Psychological Services • LeeAnn Baker, University Honors College • Ken Krane (Emer.), Physics • Henry Sayre, Art/OSU Cascades

4. A Furlough would: 1. Address the 13.2 million reduction in E&G funding for the current biennium 2. Allow units to retain as many faculty positions as possible 3. Acknowledge the classified staff who have accepted a tiered furlough for the biennium

5. MOTION: OSU faculty support a Furlough for FY2010 that adheres to the following principles: • For all faculty (grant-supported salary exempt)

6. Exempting Grant-Supported Salary • Modeled after University of California system • OSU’s Carnegie research classification: Research University – Very High Research Activity • Only one in Oregon • One of 96 in US • Defining characteristic of OSU • Exceptional success: $250M in grants & contracts FY09

7. Why a Furlough? • To exempt the portions of employee effort funded by sponsored research funds, the University would need to institute a furlough program rather than a program of salary reduction with associated optional leave. • Under a furlough program, salary is not reduced; budget reductions are achieved by requiring employees to take a fixed amount of unpaid time off during the period of the program. • It is permissible to exempt the portions of employee time funded by sponsored research dollars from a furlough program, but not from a salary reduction/optional leave program. • The resulting effect on salary for affected employees would be the same under either a furlough program or salary reduction program.

8. MOTION: OSU faculty support a Furlough for FY2010 that adheres to the following principles: • Tiered

10. Projected Savings $1.5 - $1.8M 28-33% of the $5.4M Year 1 budget reduction

11. MOTION: OSU faculty support a Furlough for FY2010 that adheres to the following principles: • Salary savings to be retained by the University to preserve faculty positions; priority placed on the salary savings offsetting budget reductions in faculty members’ units

12. MOTION: OSU faculty support a Furlough for FY2010 that adheres to the following principles: • Pay reductions are distributed evenly in monthly paychecks over the academic or fiscal year (9-mo or 12-mo employees, respectively) • Other than for the temporary pay reduction, other terms of employment remain unchanged (e.g., base salary; health insurance coverage eligibility)

13. MOTION: OSU faculty support a Furlough for FY2010 that adheres to the following principles: • University administration is directed to advocate to the State to amend PERS regulations to permit preserving at their pre-salary-reduction level faculty and staff’s retirement contributions for the duration of the temporary pay reduction • University administration is directed to explore the possibility of using a holiday closure and other mechanisms of cost savings to minimize reliance on temporary pay reductions to offset budget reductions

14. MOTION: OSU faculty support a Furlough for FY2010 that adheres to the following principles: • The furlough pay reduction is to begin January 1, 2010 and end June 30, 2010; before the end of this academic year, University administration will consult with the Faculty Senate to assess the financial circumstances projected for the second year of the biennium.

15. A Furlough would: 1. Address the 13.2 million reduction in E&G funding for the current biennium 2. Allow units to retain as many faculty positions as possible 3. Acknowledge the classified staff who have accepted a tiered furlough for the biennium

16. Which employees would be subject to the Program? The Program would apply to all unclassified employees, regardless of percentage of employment (FTE), place of work, or tenure status, except for those listed below: • Proportion of faculty members’ time that is paid from sponsored research funds; reduction pro-rated to the non-sponsored research proportion of the time • Faculty members who are partially funded from sponsored research funds may increase the proportion of time paid from those funds with permission from their granting agency to devote extra work effort to research projects

17. Employees not subject to the Program (continued) • Undergraduate student workers, • Graduate assistants • Clinical and postdoctoral fellows • Post doctoral scholars • Employees whose immigration status would be adversely impacted • Faculty who have over the past few months voluntarily reduced their tenure as part of the Partial Tenure Relinquishment Program.

18. University Contributions to PERS and ORP Retirement Plans The Furlough Program would reduce contributions made by the University on behalf of employees as a result of the unpaid time off. The contribution rate would not be reduced, but the dollar amount would be less due to the unpaid time off.

19. Would base annual salary rate be affected by this program? No. The Program would require employees to take unpaid time off, which would not affect base salary rate. Is this Program intended to be permanent? No.

20. A Furlough would: 1. Address the 13.2 million reduction in E&G funding for the current biennium 2. Allow units to retain as many faculty positions as possible 3. Acknowledge the classified staff who have accepted a tiered furlough for the biennium