On Thursday, Oct. 26, Mills President Alecia DeCoudreaux sent out an email to faculty and staff outlining specific details regarding plans for staff furloughs and faculty pay reductions to help solve the College’s current budget deficit of $3.5 million.
“As I have previously stated at recent faculty and staff meetings, it is necessary to implement temporary furloughs for staff and temporary salary reductions for faculty,” DeCoudreaux said in her email. “These reductions are necessary because the largest component of the College’s budget is compensation (approximately 66 percent of the FY2012 budget), which includes salary, taxes, accrued vacation, health and welfare benefits and retirement benefits.”
DeCoudreaux explained that salary reductions would be applied to all tenured and tenure-track faculty, while staff would be required to take up to twelve furlough days per fiscal year beginning Dec. 19. According to the email, faculty pay reductions will vary between one percent and 2.5 percent, depending on what kind of position a faculty member holds. For example, assistant professors will receive the smallest pay cut, while full time and tenured professors will receive a higher salary reduction.
DeCoudreaux and other members of the College’s administration will also have their salaries reduced.
“Members of the President’s Cabinet are committed to additional compensation reductions as part of our leadership roles and our commitment to the continued success of the College,” DeCoudreaux said in her email. “As such, my salary will be reduced by three percent and the Provost’s salary will be reduced by 2.75 percent through FY2013, and in addition we will both be subject to the twelve-day furlough affecting exempt staff.”
DeCoudreaux’s email highlighted that the announced reductions will save the College an estimated $1,000,000.
According to the email, retirement plans for all participating employees will also be affected.
The College will lower its contribution to retirement plans to eight percent from Dec. 1, 2011 until June 30, 2012. On July 1, 2012, the College’s contribution will permanently remain at nine percent. The email explained that these changes will save the College an estimated $345,000 for the 2012 fiscal year.
“Although these are difficult times, we are working diligently to create a structure that will solidify a secure and prosperous future for Mills,” DeCoudreaux said in her email.
The Campanil solicited responses from various faculty members but none were available for comment at the time of publication.