Budget cuts lead to proposed University employee buyout

Details of a proposed employee buyout plan were announced last month, following significant cuts from the state budget. Available to 115 faculty, staff and administrators, the plan would reallocate positions and resources across the campus.

The program features three key incentives. Under the current proposal, accepted applicants will receive health insurance payments equivalent to the current cost of health care for six months. They'll receive college tuition portions that would allow applicants to take college courses for up to two years. Applicants will also get a cash payment, consisting of three months base pay, a service payment equal to $500 per year of service and a longevity payment based on number of years at the university.?

If approved by the Tennessee Board of Regents later this month, the offer will be available to 50 staff members, 25 academic professionals and 40 faculty members with a minimum of six months service or more.?

Charles Lee, vice president of business and finance, said there are a few limitations. Because only 115 positions are available, The University won't leave the opportunity open for an extended period of time.

"This is about taking care of those who were considering leaving anyway and making swift changes to foster university growth," Lee said. "We can carry out our work with fewer positions in the short term, and this will give us the opportunity to refresh the faculty in strategic areas."

The University also recommended to TBR that any program recipient would be barred from employment at any other TBR school for up to five years.

Assistant vice president of human resources, Harriet Montgomery, said this is the first program of its kind to be offered exclusively to university employees.

"This is a for those who are ready to make a change," she said. "It gives them a perfect opportunity to get off the fence."

Montgomery said she looks forward to seeing how employees respond. Lee added that provisions have been made in the likely event more than 115 people apply.

"We looked at what we could afford, and based on population, we set aside a certain number to allow," Lee said. "The President's council will make the decision based on seniority as defined by the state, in years of service."

Provost Ralph Faudree agreed. He said extra care will be taken to spread the overall impact and help the employees left responsible for their work.

"It reduces the number of positions you'd have to get rid of to prepare for a staff cut and decreases the chance you'd get rid of a position of someone who wants to stay," Faudree said. "I think it's a program that could be very desirable for some people."

But not everyone is eligible. Some employees cannot participate because of their direct connection to grant funded and research positions, or any other strategic initiatives, such as police services, the president's council, Campus School directors and marketing and communication directors.

Lee also added that top university officials, such as himself, would also be excluded.

"It would like kind of funny for me to put together a program like this and then take it myself,"?he said, noting his own retirement effective Oct. 1.

If approval is granted in September, the buyout program will be officially announced and employees will have until Oct 30 to review the plan and submit an application. From Nov 1 to Nov. 10, a retraction period will be issued, giving undecided applicants time change their minds. The University will review each application and notify its accepted applicants by Nov. 15. For tax purposes, Lee hopes Dec. 31 will be their last day on payroll.

Both Lee and Montgomery emphasized to employees that the program is still under review and could be rejected.

"If it's not approved, we don't want people to make plans or get their hopes up," Montgomery said. "I think it could have some good results but we don't have all the answers yet."