Up to 75 layoffs are expected at the University of Kentucky as the institution embarks on a “realignment” affecting several departments.
UK officials have outlined roughly $6 million in potential savings as they chart the school's economic course for the coming year. The challenge: boost graduation and retention rates while absorbing about $12.6 million in state cuts, which represent only a fraction of $40 million in identified budget needs.
The first phase of layoffs mainly focuses on divisions reporting to the provost, including Undergraduate Education and Student Affairs. The two will merge to form a new, leaner unit known as Student and Academic Life by August 1.
"The provost has identified areas where he think there is perhaps duplication of service, or duplication of positions," says administration spokesman Jay Blanton.
Blanton stresses the university did not start the reorganization effort with layoffs in mind and will offer all affected employees 90 days full pay and benefits.
"There are going to be some positions that will be unfortunately eliminated as part of the process. There will be some positions that will be reclassified and so there will be some opportunities potentially where someone was in a position that was eliminated or reclassified will be able to apply for another position," he explains. "We're just not at the point yet where we know with specificity how that will play out."
Other units coming under the microscope include the Kentucky Cooperative Extension Service, where officials hope to realize $2.6 million in savings, and instruction and research faculty in the College of Medicine. Streamlined facilities operations are also projected to free up $500,000.
The goal, according to a campus-wide email update, is to maximize student success, financial stability, belonging and engagement, and wellness. The UK Board of Trustees will consider the plan in June, along with any proposed changes to tuition rates.
Read the full email from UK Provost Tim Tracy and Executive Vice President for Finance and Administration Eric Monday below.
Dear colleagues and students,
As the university for Kentucky, we have ambitious, but achievable goals for the next five years: significant increases in graduation and retention rates, fostering a more diverse and inclusive campus community, expanding research and creative scholarship, and advancing subspecialty care that helps solve the Commonwealth’s biggest challenges.
We have tremendous momentum in reaching our goals – momentum made possible because of you and your colleagues in colleges, units, and departments throughout this campus. Collectively, we must build upon that momentum in the context of a challenging financial climate.
This is why we plan.
In October, the University of Kentucky Board of Trustees endorsed the institution’s five-year strategic plan, which was built with your support and input during a campus-wide process.
Over the last several months, we laid the groundwork for further success on our priorities. Our next step includes realigning parts of our campus to make greater progress on the goals outlined in the Strategic Plan, with a specific focus on bolstering student success and academic excellence.
Our realignment – as part of the budget the Board will consider in June – is designed to generate nearly $6 million in savings in the coming year.
Those savings will go toward more than $40 million in budget needs for strategic investments in areas such as advising and counseling, student success initiatives, competitive compensation for faculty and staff, increased costs for utilities and other fixed costs, increases in institutional student aid, as well as offsetting the decrease in state appropriations we face in the coming year.
More specifically, our plans include:
· $1 million in savings generated by realigning areas within the Provost’s office that focus on student success and academic excellence. The realignment will include the merger of Undergraduate Education and Student Affairs to work more deliberately in support of the colleges. The new division, with a smaller administrative structure and more resources devoted to frontline, student support, will be called Student and Academic Life. The new unit will help drive our priority to increase student success by focusing on four key elements central to excellence: academic success, financial stability, belonging and engagement, and wellness.
· An initiative over the next two years to modernize and refocus Kentucky Cooperative Extension Service, generating $2.6 million in savings, as well as an additional $500,000 in strategic savings within the college.
· Changes in instructional and research faculty effort in the College of Medicine, which will generate $1 million in general fund budget savings.
· Streamlining operations to generate an additional $500,000 in efficiencies through new business processes within the University’s facilities areas.
As part of this process, work is currently underway to complete a review of positions across several departments, which are projected to include reductions in force of up to 75 positions. The first phase affecting the new unit Student and Academic Life will conclude by Aug. 1. Later phases will assess other units within the Provost area.
Those impacted will be afforded a 90-day notice with full pay and benefits, and we will work with everyone in a compassionate way to help position them to move forward, either at UK or in another capacity.
The goal of every move is to increase the number of personnel directly working with and in support of students, while removing administrative layers to provide a more integrated and seamless structure.
We did not approach any of these decisions lightly, and all were made with considerable input and reflection from affected college and unit leadership.
The steps we are taking are focused entirely on aligning our resources to support those efforts and priorities we value most – our students and the work we do on behalf of the Commonwealth we serve.
Your tireless efforts have helped position the University of Kentucky as a recognized place for student success, excellence in academics, pioneering research, community engagement, and sophisticated health care. We are the state’s indispensable institution.
Because of you, we are the university for Kentucky.
Sincerely,
Tim Tracy
Eric Monday
