All of the talk about budget cuts in the next fiscal year for state agencies, universities, and colleges has prompted proposals for employee furloughs as a cost-cutting measure. How would furloughs be implemented at USC?

It's important to remember that furloughs (time off without pay) are only in the legislative proposal stage at this point. A furlough could be an important management tool for the University because it would provide an additional means of reducing expenditures, which could reduce the number of employees who would have to be laid off as well as reduce the amount cut from other operational costs.

No one wants to have time off without pay, but it sounds as if furloughs would at least protect more positions.

I would anticipate that the ability to implement a furlough would allow the University to reduce the number of employees that otherwise would have to be laid off to meet the projected budget cuts. However, it is doubtful that the University can meet the projected cuts without some reduction in force even if the furlough provisos are approved by the Legislature.

Would everyone at USC be furloughed?

Again, let me emphasize that furloughs are only a proposal at this time. Legislators are considering two provisos: one would allow voluntary furloughs for all state agencies, including colleges and universities. The other would give institutions of higher education the authority under specific circumstances to implement furloughs for up to 20 days during a fiscal year although we do not contemplate a full 20 days being necessary. If the mandated furlough proviso was to be approved, it would apply to all University faculty, staff, and administrators from the president on down.

If the mandated furlough proviso is approved, how would USC implement it?

The University would plan to implement any furlough in such a way as to impact our academic mission as little as possible. That would be our primary effort in determining when any furlough would take effect. For instance, we might use days students are not in class as furlough days to avoid interfering with class schedules. However, whatever is determined, furlough days would be selected in such a way as to place as little burden as possible on employees who anticipate receiving a paycheck for a specific amount of money every two weeks. We're investigating the possibility of spreading any furlough-related reductions in pay over several pay periods to avoid employees losing too large of a portion of their salary from any one paycheck. Also, according to the legislative proposal, during furlough days the University would pay the employer and employee costs associated with insurance and retirement benefits to insure there was no loss of health insurance or retirement benefits for our employees.

What other cost-cutting options is the University considering?

A group of administrators has been meeting to discuss and develop management tools that would assist all units in meeting the required budget cuts. At this point, nothing has been eliminated from consideration. In addition to the possibility of furloughs, we are anticipating there will be layoffs and cuts in operational budgets for academic and administrative units. The University already has implemented a hiring freeze, while travel and equipment purchases have been limited to those that are mission-critical. Everything, no matter how small, can help as we try to conserve current spending in anticipation of such a severe budget cut.

What message do you want to tell faculty and staff?

This is the most serious budget cut that higher education has had to face in my 27 years with the University. It is important for everyone to recognize that the University is in for some rough times, but we will do everything we can to protect employee benefits.