Financial Exigency Policy
Preamble
The Declaration of Financial Exigency is drastic action entered into by an institution to preserve its role, scope, and mission. When a budgetary crisis demands this type of emergency response, the University’s actions must be grounded in the historic mission of the institution. Therefore, the Greenville University mission statement and foundational documents will provide the guiding principles throughout this process.
The faculty trusts that the process that follows this declaration of financial exigency will be cautious, fair, well informed, and as responsive as possible to the interests of various stakeholders of the University. Thus, in keeping with principles of mutuality and interdependence, faculty, staff, administration, and board will be involved in responding to a declaration of financial exigency. This policy is designed to bring these constituencies together to face difficult financial straits in an atmosphere of trust and common concern for the institution.
Definition
Financial exigency is a state of financial crisis that could cripple or threaten the survival of the University and its educational mission. Such a crisis will likely be resolved only by taking extraordinary measures such as the closing of existing academic and non-academic programs. These measures may require the reduction of salaries, or terminations of contract personnel (including tenured and non-tenured faculty) before the expiration of a contract term. Because financial exigency is a fiscal crisis characterizing the entire institution, a subset of the institution (e.g. a department or school) cannot be declared to be in such a state.
Declaration
The Greenville University Board of Trustees has sole authority to declare a state of financial exigency.
Financial Exigency Procedures
When the Board has declared a financial exigency the President (or the Board’s appointee1), shall form an Institutional Retrenchment Committee (IRC) which shall consist of the chief financial officer, the chief academic officer, the school deans, a staff member appointed by the President, the Faculty Moderator, and chair of the Faculty Review Committee (FRC). If the Committee needs to act when one of these faculty members is not available, the moderator and the FRC chair will appoint a member from the FRC.
Within 21 days of the declaration of financial exigency, the IRC will develop one or more proposals designed to address the crisis.
The IRC, in taking steps to address the crisis, shall strive to:
• retain faculty members of higher rank and longer service, who are superior teachers;
• minimize the consequences of personnel reductions on interdependent programs;
• meet the legal requirements of the University charter;
• maintain the mission and identity of the University; and
• meet the requirements of the government agencies and accrediting bodies with which the University has formal agreements and/or undertakings.
The President shall study the proposals of the IRC and their potential effects on the University. He or she should consult those school deans, department chairs, and directors whose programs the proposed changes would affect and work closely with the IRC to determine as far as possible the consequences of the proposed measures.
The President will confer with each faculty member slated for dismissal before announcing the action to the faculty.
When final decisions about personnel reductions have been made, the President will give advance notice to those school deans, department chairs, and program directors involved to enable them to begin the planning necessary to reduce the negative effects generated by the reductions.
The President shall take these proposals to the board for their approval within seven days of the IRC’s report.
If the University terminates an appointment for reasons of financial exigency, it shall attempt to place the faculty member in a different but suitable position within the institution. If the University cannot reassign the faculty member, the University will try to assist the individual by:
• identifying other job openings for comparable posts at other institutions and
• providing letters of reference that clearly explain the conditions of financial exigency behind this employee’s termination.
If for reasons of financial exigency, the University terminates a tenured faculty member’s contract, for the three academic years following that termination (or non-renewal) the University shall attempt to notify this individual of any subsequent faculty openings for which he or she might be qualified and invite him or her to apply for the post.
The board chair and the president will provide regular updates to the faculty on the state of the crisis.
Procedures for Termination of Personnel under Conditions of Financial Exigency
Following the declaration by the board that a condition of financial exigency exists, the president is authorized to carry out those actions, including reduction in force, which are included in the plan approved by the board. Reduction in force under this policy may include any personnel classification, including tenured faculty members.
1. The procedures for termination are in force only during a period in which the board has declared that the institution is in a period of financial exigency.
2. An individual selected for termination shall meet with and receive prompt written notification from the president. That notification shall include the following:
a. a statement of the basis on which the individual was selected for termination,
b. a statement of the date on which the termination is to become effective,
c. a copy of the declaration of financial exigency adopted by the board, and
d. such other information as the President and/or Board may deem appropriate.
Again, the President will confer with each faculty member slated for dismissal before announcing the action to the faculty.
1 In this particular policy statement regarding financial exigency, the term "President" means either the President or a temporary executive officer appointed by the Board to address this financial crisis.