By Eli Hughes–
President Neeli Bendapudi announced in an email on April 9 that the University of Louisville plans to furlough some employees and reduce pay for others due to the financial effects of the COVID-19 outbreak.
It is unclear how many employees these measures will affect but they are expected to stay in place until at least June 30.
“As of today, the university is projecting a nearly $40 million negative impact between now and the end of the fiscal year unless we take immediate, strategic and necessary steps to resolve it,” Bendapudi said.
Some of the other steps the university will take include: instituting a hiring freeze, encouraging departments to limit expenses to only essential items, prioritizing student recruitment and retention, prohibiting travel, and possibly making temporary changes to retirement benefits. The changes to retirement will not affect health or life insurance benefits.
The pay reductions will depend on the total compensation of each employee. The reduction will be 10 percent for those earning 300,000 or more, 5 percent for those earning between 200,000 and 299,999 and 2 percent for those earning between 100,00 and 199,999.
Bendapudi, Provost Beth Boehm, Executive Executive Vice President for Research and Innovation Kevin Gardner and all of UofL’s senior leaders have also agreed to reduced pay until at least June 30.
“U of L is a great place to learn, work and invest that is uniquely positioned to provide our current and prospective students the experience they need to fulfill their full academic and personal goals,” Bendapudi said.
“To be clear, the measures we are taking to resolve this short-term financial issue created by the COVID-19 global health crisis require all of us to sacrifice a little now, but this will not impact our commitment to deliver on our noble purpose.