UK announces budget shortfall; will furlough & layoff university employees
The effects of the coronavirus on America’s economy are being felt at all levels.
Tuesday, the University of Kentucky announced a $70 million budget shortfall for next year. That release said most of the institution's revenues are expected to decline, many of them significantly.
$40 million of that shortfall is from a projected decline in revenue from enrollment and short term investments. The other $30 million is because of ongoing financial commitments and increased costs at the university.
President Eli Capilouto said a lot of the decisions they’ll have to make because of that decline in revenue will be painful.
They’re going to respond in several ways including layoffs, and continuing the hiring pause at the university for the foreseeable future.
They are also enacting a 90-day furlough in parts of the university where work has ceased or been reduced significantly.
And the university won’t be providing a merit increase on July 1 for the coming year, something they’ve done for the past seven years.
While the university finished the spring semester online, they haven’t revealed their plans for the fall. We only know that they are still in the process of figuring that out.
UK said they will continue to pay health premiums for employees who are furloughed.
Right now, UK officials say they are planning to have students back on campus for the fall