Tag: Facing

  • Best Practices for Facing Tough Budget Choices

    Best Practices for Facing Tough Budget Choices

    by Julie Burrell | March 19, 2025

    Navigating budget cuts — especially when it comes to personnel decisions — is one of the most difficult challenges HR professionals can face, both professionally and emotionally.

    As payroll is often an institution’s biggest budget line item, it’s often one of the first places to be impacted by cuts. Whether HR is considering instituting hiring freezes or moving toward a reduction in force (RIF), the path forward requires strategic thinking and compassionate implementation.

    Here are key takeaways from the CUPA-HR webinar Budget Reductions in Higher Ed: Strategies, Collaboration, Challenges, which detailed how one institution implemented a multi-step cost-reduction program and ultimately achieved $15 million in savings.

    Best Practices for Payroll Reductions

    Cultivate collaboration between HR and finance. A reduction in force requires a strong partnership between HR and finance. This partnership was brought to life by webinar presenters Shawna Kuether, the associate vice chancellor of human resources at the University of Wisconsin Oshkosh, and Bethany Rusch, now the vice president of finance and administration at Moraine Park Technical College (previously of UWO). For actions like personnel reductions and severance packages, finance focused on cost control and supplying relevant metrics, while HR addressed risk mitigation by identifying legal and compliance implications.

    Their advice to HR: If you don’t already have a strong partnership with finance, begin building one now. A working relationship built on mutual respect is not only beneficial when difficult budgetary constraints arise, but also vital to the overall health of your institution.

    Meet a tight timeline if necessary. UWO was looking to improve its financial position within one year. That meant HR and finance had three months from the project approval stage to notifying employees.

    Here are the five broad strategies they implemented in that timeframe:

    • Offering voluntary retirement incentive options.
    • Freezing all personnel actions, including searches already underway.
    • Pledging to no new financial commitments.
    • Enacting graduated, intermittent furloughs for all non-academic employees, which provided the funds for the voluntary retirement incentives.
    • Implementing a reduction in force to reduce salary costs.

    Consider a workforce-planning workshop. In the webinar, Kuether and Rusch detail their five-day planning workshop, which was driven by their why (a set of five guiding principles); their who (such as subject matter experts who understood which critical skill sets were needed to ensure continuity of operations); and their what (such as key metrics to determine what staff-to-student ratios to use).

    Communicate early and often what criteria you employ — and document them. During an RIF, clear and transparent communication and documentation are fundamental to success. Criteria for layoffs followed the documented university policy, which is publicly available online, and these criteria were communicated clearly during the course of the RIF process, thereby minimizing liability, employee appeals, and potential litigation.

    Provide employee transitional planning and resources. HR’s work is far from over once RIF decisions are announced. At UWO, transition support to affected employees and their supervisors included:

    • Offering EAP resources, including onsite walk-in sessions with counselors.
    • Providing toolkits to managers handling difficult conversations.
    • Offering rapid-response sessions in collaboration with the Department of Workforce Development to provide training on filing unemployment and finding job opportunities in the state.
    • Contracting with an external vendor to provide outplacement services, including training and interviewing skills.
    • Hosting a job fair specifically for dislocated workers.

    Maintain the results after the RIF has concluded. Following through with a RIF is emotionally and operationally challenging — you want to ensure the results last. The webinar covered tips on maintaining proper guardrails to protect the results.

    Acknowledge the emotional toll. “This is heavy and oftentimes heartbreaking work,” Kuether and Rusch stressed. “But for us, and maybe for you, the financial realities of our university could not be ignored. You have to find your motivation in knowing you are making your college financially viable and able to focus on accomplishing its educational mission.”

    They say the two most important traits that higher ed leaders need during budget cuts are resilience and adaptability. Resilience allowed the HR and finance teams to stay focused in moments of stress, while adaptability helped them remove barriers as they came up and stay the course.

    Want to learn more about UWO’s work? Watch the webinar recording.

    Related CUPA-HR Resources

    Furloughs, Layoffs and RIFs — Best Practices in Policy Development in the Wake of COVID-19 — This on-demand CUPA-HR webinar covers the pros and cons of four main options for reducing payroll costs: furlough, salary freeze, salary reduction and RIFs.

    Layoff/RIF/Furlough Toolkit — A highlight of this HR toolkit is “You Can Get There From Here: The Road to Downsizing in Higher Education,” a comprehensive guide to all aspects of budget reductions.

    Change Management Toolkit — This HR toolkit includes resources ranging from change-management basics to best practices from higher ed institutions.



    Source link

  • Facing NIH cuts, colleges restrict grad student admissions

    Facing NIH cuts, colleges restrict grad student admissions

    Several colleges and universities are pausing admissions to some graduate programs, reducing class sizes or rescinding offers to students in an effort to cut costs amid uncertainty in federal funding.

    The disruption to graduate school admissions is the latest cost-cutting move for colleges. After the National Institutes of Health proposed cutting reimbursements for costs related to research, several colleges and universities said they would pause hiring and cut spending, Inside Higher Ed previously reported. (A federal judge has blocked the NIH plan from taking effect for now.)

    In recent days, the University of Pittsburgh, the University of Pennsylvania and several other institutions have stopped doctoral admissions, at least temporarily. Some colleges are pausing admissions to some programs such as in the biomedical sciences, Stat News reported. At others, the pause is universitywide. The University of Southern California and Vanderbilt University temporarily paused graduate student admissions, though both universities later said that they’d ended the pause.

    A University of Pittsburgh spokesperson told WESA, a local NPR station, that the university “temporarily paused additional Ph.D. offers of admission until the impacts of that [NIH] cap were better understood … the University is in the process of completing that analysis and expects to be in a position to resume offers soon.”

    Meanwhile, the University of Pennsylvania is planning to cut graduate admissions rates, The Daily Pennsylvanian reported, citing an email from the interim dean of the School of Arts and Sciences, Jeffrey Kallberg, who wrote that the cuts were a “necessary cost-saving measure” to adjust to the NIH proposal.

    “This is not a step any of us wanted to take,” Kallberg wrote, according to the Daily Penn. “We recognize that graduate students are central to the intellectual life of our school—as researchers, teachers, collaborators, and future scholars. However, we must ensure that we can continue to provide strong support for those students currently in our programs and sustain the school’s core teaching and research activities.”

    Tom Kimbis, executive director of the National Postdoctoral Association, wrote in an email to Inside Higher Ed that academic institutions reliant on federal funding “are being forced to make tough decisions to support these researchers in a difficult environment.”

    “The decisions in Washington to pause or cease funding for science and research is impacting early-career researchers across a wide range of disciplines,” Kimbis added. “Slowing or stopping their work, on topics from cancer and Alzheimer’s research to social science issues, hurts Americans in all 50 states.”

    In the last week, some faculty began tracking the reductions in the biomedical sciences via a shared spreadsheet that includes verified cuts and unverified decisions based on word of mouth and internal emails. Faculty on social media said the cuts will have long-term ramifications for sciences as fewer students enter the field. On TikTok, several students who had applied to grad school shared their dismay at how the funding cuts meant they might have to say goodbye to their career plans and research.

    Accepting graduate students, particularly for Ph.D. programs and in the biomedical sciences, requires universities to make a long-term financial commitment, which is more difficult now that the NIH has stopped making new grant awards and is aiming to cut funds. Colleges receive billions from the NIH to support research. If the proposed rate cuts move forward, institutions say they would have to shut down some labs and lay off employees.

    “University research and scholarship operate on a time scale of years and decades,” the Rutgers AAUP-AFT chapter wrote in a letter to New Jersey senators Cory Booker and Andy Kim. “Higher education would become impossible in the face of capricious and arbitrary withholding of funding, elimination of entire areas of grant support for critical scientific research, and cancellation of long-held contracts.”

    They went on to warn that the threat to funding would diminish the country’s strength as a research superpower. “The best scientists, the best scholars, and the best students will make the rational decision to take their talents elsewhere. Once lost, the historic excellence of United States universities, including world-leading institutions in New Jersey, both public and private, will not be easily regained.”



    Source link

  • Facing Tighter Budget, Oklahoma Lawmakers Cast Doubt on Walters’ Budget Requests – The 74

    Facing Tighter Budget, Oklahoma Lawmakers Cast Doubt on Walters’ Budget Requests – The 74


    Get stories like this delivered straight to your inbox. Sign up for The 74 Newsletter

    OKLAHOMA CITY — As state officials anticipate a smaller budget in the next fiscal year, lawmakers on Tuesday appeared doubtful of requests to spend millions on Bibles for public schools and salary increases at the Oklahoma State Department of Education.

    The agency’s leader, state Superintendent Ryan Walters, again asked for $3 million to purchase copies of the Bible, the Declaration of Independence and the U.S. Constitution to place in every public school classroom. He also requested $2.3 million for a 6% cost-of-living salary bump for Education Department employees, who last saw a pay raise in 2019.

    Although his total budget request would increase the agency’s funding by $113 million, Walters hinted at “potential staff cuts” to limit the Education Department’s operational expenses during a meeting Tuesday with the Senate Appropriations Committee.

    “I​​ do believe we can save $1.3 million in some of the costs that we’ve been able to absorb through rolling positions together, cutting positions that are duplicated in their services,” Walters said during the meeting.

    Members of the influential appropriations committee heard Walters’ budget requests for the 2026 fiscal year. The state is required to pay some of the projected expenses, such as an extra $88.6 million for the rising cost of health insurance for public school employees.

    Another $4 million would increase the teacher maternity leave fund, which Walters said is growing in popularity. He also asked for $500,000 to offer firearms training to teachers.

    Senators of both parties questioned Walters’ request for $3 million to buy 55,000 copies of the King James Version Bible, which they suggested could be donated to schools or found for free online.

    House lawmakers had similar questions during a hearing with Walters last week.

    The state superintendent has advocated for more instruction on the Bible to help contextualize American history and the beliefs of the country’s founding fathers. He said he doesn’t intend for schools to preach Christianity to students.

    Last year, he ordered all school districts in the state to incorporate the Bible into their lesson plans and proposed new academic standards for social studies that would mandate instruction on biblical stories. His agency already spent under $25,000 on 532 copies of Lee Greenwood’s God Bless the USA Bible, which is informally known as the Trump Bible because it has the president’s endorsement.

    Walters’ Bible instruction mandate already faces a legal challenge on church-state separation grounds.

    Sen. Brenda Stanley, R-Midwest City, said she never encountered a classroom that didn’t have a Bible available to students during her 43-year career in education.

    Sen. Dave Rader, R-Tulsa, encouraged Walters to exhaust all resources for Bible donations before having the Legislature consider spending $3 million.

    “We could take the $3 million elsewhere, if somebody is willing to make those available to us at no cost,” Rader said during the hearing.

    The Senate committee also appeared dubious of funding a COLA increase for an agency that has lost dozens of employees over the past two years. Walters told the committee the Education Department employed 520 people when he took office in January 2023 and that it now counts 460 employees.

    “If you have decreased your (full-time employees), it would appear to me that there are already dollars inside your operating budget to offer salary increases,” Sen. Kristen Thompson, R-Edmond, told Walters during the hearing.

    Walters disagreed that staff departures would be enough to fund the increase. A complicating factor is the large number of federally funded salaries at the agency, he said.

    The department has considered reducing its staff even further after the state Board of Equalization projected the Legislature will have $119 million less to spend in the 2026 fiscal year, Walters said.

    The projection is preliminary, and the Board of Equalization will meet again this month for updated numbers.

    “After the last Board of Equalization meeting, we really went in and tried to do a deep dive into can we continue to see cuts, and we believe that we do need to be able to do that,” Walters said.

    Legislative leaders are preparing to limit expenses in light of the budget projections, especially as Gov. Kevin Stitt pushes for further tax cuts, flat agency budgets and “eliminating wasteful government spending.”

    The governor suggested no funding increases to public schools nor to the state Education Department in a budget proposal he released Monday.

    House Speaker Kyle Hilbert, R-Bristow, said Monday that he shares many of the governor’s priorities “as we seek to tighten our belt fiscally this year.” Senate President Pro Tem Lonnie Paxton, R-Tuttle, echoed Stitt’s tax-cut message when he endorsed “improving the lives of Oklahomans by allowing them to keep more of their hard-earned money.”

    Oklahoma Voice is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Oklahoma Voice maintains editorial independence. Contact Editor Janelle Stecklein for questions: info@oklahomavoice.com.


    Get stories like these delivered straight to your inbox. Sign up for The 74 Newsletter

    Source link