As the economy is ravaged during the nation-wide lockdown, its impact on higher education is beginning to be reported. Earlier this week the University of Arizona announced dramatic pay cuts and furloughs, which are detailed below. Expect this to the be first of many such announcements as this economic crisis continues.
Pay cuts and furloughs are on the horizon at Arizona law school (ABA Journal)
A pay cut has been implemented for staff and faculty at the University of Arizona, including its law school, as the university projects $250 million in losses because of the novel coronavirus. Already, the university has $66 million in losses, according to the Arizona Daily Star. Employees making at least $200,000 will take a 20% pay cut, and people who earn between $150,001 and $199,999 have to take a 17% pay cut. Those earning less than $150,000 will be subject to furlough days of varying lengths depending on salary, ranging from 5% to 15% in pay cuts. The cuts are expected to begin May 11 and run through June 2021. Marc L. Miller, the university’s law school dean, told the ABA Journal that he has not heard of similar plans at other law schools.
From the Arizona Daily Star (Tucson newspaper)
Those cost-saving efforts come as the UA has already seen $66 million in losses — and is projected to lose as much as $250 million — as a result of the coronavirus, according to UA President Robert C. Robbins, who told the Arizona Daily Star on Friday that the furloughs will be reviewed each month to ensure they’re hitting savings goals.
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. . . [I]nternational students might have trouble getting to Tucson as a result of worldwide travel restrictions, while many out-of-state students may opt to stay closer to home, he said. The UA is projecting a 25% decrease in out-of-state tuition.
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“If this is as bad as we’re projecting it to be, we still got $100 million we’ve got to make up from somewhere,” [Robbins] said, adding that the losses could reach as high as $500 million should the students not be able to return to campus.