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Policy number: 2.19

Policy section: Academic Affairs

Revised Date: December 16, 2019

1.  Policy Statement

In the event of extraordinary circumstances because of a bona fide financial exigency, it is the policy of the University that tenured faculty , tenure-track probationary faculty, or faculty with unexpired terms may be terminated to effectively resolve the condition.

2.  Purpose

The purpose of this policy is to establish the University’s internal procedures to be followed in making recommendations to the Board of Trustees for action to resolve the financial exigency.

3.  Definition of Financial Exigency

A financial exigency is an imminent financial crisis which threatens the survival of the institution as a whole and which cannot be alleviated by less drastic means than to terminate appointments of tenured faculty or those with unexpired terms. This may not entail the termination of entire programs or schools, which is discussed in University Policy 2.18, School or Program Discontinuance. If the University terminates appointments because of financial exigency as provided in this policy, it will not make new appointments at the same time, except in extraordinary circumstances where a serious distortion in the academic program would otherwise result.

4.  Determination of Financial Exigency

1. When the President determines that the University is approaching financial crisis, he will notify the faculty as early and as specifically as possible of the impending financial difficulties.
2. The President will appoint a University-wide Exigency Review Committee comprised predominantly of faculty. The responsibilities of this committee include the following:

1. To participate in finding whether a condition of financial exigency exists or is imminent.
2. To participate in determining whether there are feasible alternatives to termination of appointments.
3. To participate in determining the policy governing the allocation of faculty reductions within the University once all other less drastic alternatives have been exhausted.

5.  Determination of Faculty Terminations

1. The Deans of each school will establish a school committee consisting of at least a majority of full-time faculty, both tenured and non-tenured, to determine the criteria for identifying the individuals whose appointments are to be terminated. Although the criteria may vary from school to school according to its particular circumstances and need, a tenured member of the faculty will not be terminated while non-tenured faculty are retained except in extraordinary circumstances where a serious distortion in the school’s academic program will otherwise result.
2. The Deans will be responsible for applying the criteria and recommending to the Provost the individuals whose appointments are to be terminated.
3. Before terminating an appointment because of financial exigency, the Provost will make a reasonable effort to place the faculty member concerned in another suitable position within the University.

6.  Right of Faculty Review

When the Provost issues notice to a particular faculty member of an intention to terminate the appointment because of financial exigency, the faculty member will have the right to a full hearing before a faculty committee within the school. The decision of the school committee may be appealed to a University faculty panel, appointed by the Provost in consultation with the Faculty Senate Executive Committee. The issues of the hearings may include whether the policies stated above have been followed and whether the criteria are being properly applied in the individual case. The decision of the school committee will be advisory to the President.

7.  Questions

Questions regarding this policy should be directed to the Office of the Provost.

Revised: December 16, 2019

Adopted: June 1, 1994