Dear Faculty and Staff:

Ohio University, like universities and colleges across the country, is transforming to remain competitive in the 21st century higher education landscape. In the midst of this historic transformational period, we are grappling with unprecedented financial challenges. While we have begun a number of Vision OHIO initiatives to reduce administrative costs through shared services, strategic procurement and statewide partnerships, the rapid decline of the global economy has heightened the urgency for action.  

For public colleges and universities in Ohio, Governor Strickland's strong support of higher education has helped us fare better than most across the nation. But, it is important to remember that the Governor's budget proposal will go through a lengthy legislative process before the next biennial budget is set. Despite hope for continued support from the Governor and the General Assembly, Ohio University has, indeed, suffered the effects of this economic downturn. The losses to our endowment income, interest income, and financial aid support, coupled with a multi-year tuition freeze and increases in operating expenses have forced us to take difficult action. 

In making each decision, the academic and administrative leadership at Ohio University have valued the input of the University community. We took each recommendation under serious consideration as we moved forward with budget reductions. I assure you that all of our decisions were aimed at protecting our full-time, tenured and tenure-track faculty and our core academic mission.

Over the last few months, we identified ways to achieve universitywide savings through administrative restructuring, elimination of vacant positions, and changes to our health plan. All these efforts were focused on minimizing the number of layoffs. Coinciding with that work, all planning units throughout the University developed plans to achieve fiscal year 2010 reduction targets totaling $15 million.

The targets for each planning unit varied, with the largest cuts to support units at an average of 5.1 percent and smaller cuts to academic units at an average of 3.2 percent. While extremely difficult to achieve, a $15 million reduction compares favorably with an earlier best-case scenario reduction of $20 million. The lower target was made possible as a result of Governor Strickland's priority on funding for higher education, the federal stimulus package, and our institution's efforts to identify and achieve efficiencies.

In preparing their budget reduction plans, planning units had the opportunity to describe the impact of the budget cuts and request that their highest-priority items be exempted from reduction. I along with Executive Vice President and Provost Kathy Krendl and Senior Vice President of Finance and Administration Bill Decatur reviewed the planning units' submissions and considered the impact statements of the cuts on each unit. As a result of our review and deliberation, we were able to restore approximately $850,000 in personnel and operating expenses previously identified by planning units for reduction.

While there are preliminary layoff numbers, these numbers are changing on a daily -- sometimes hourly -- basis. As you know, Ohio University is offering an Ohio Public Employees Retirement System (OPERS) Early Retirement Incentive Program (ERIP) to eligible employees through August 30, 2009. In some instances, vacancies created through retirements already have created opportunities for redeployment of laid-off staff members into retiree-vacated positions.

In identifying positions for layoffs, we held to the principle of protecting teaching and learning activities. As of this morning, the following groups have been affected by layoffs: Administrators (36); AFSCME (32); Classified Non-bargaining Unit (21); Full-time, Tenured and Tenure-track Faculty (0).

As an institution, we have taken a number of steps to support affected employees by offering severance pay, outplacement assistance, extended medical coverage continuation, and educational benefits continuation. For additional information regarding these services, quick links to frequently asked questions, and information on a workshop available to all employees regarding workplace transition, visit www.ohio.edu/hr/outplacement.

The past several months have been extremely stressful on our University community. Many of us, including myself, have had to say goodbye to valued, dedicated coworkers whose positions were eliminated as a result of our current economic situation. Those who remain have had to take on more responsibilities and continue the work that must be done. This is a very difficult time, and it is not lost on anyone who cares deeply for the people who make Ohio University a great place.

Given our current financial realities, please know that we have addressed our financial challenges in a straightforward manner. And, while difficult on our community, we have done it in a way that will ensure we are stronger in future years. For additional budget information, visit www.ohio.edu/budget.

I will continue to inform you of budget developments, including finalization of the State budget, in the months ahead. Thank you for all that you continue to do for Ohio University and its students.

Cordially,

Roderick J. McDavis
President