December 20, 2008

Purdue takes series of steps to address economic downturn

James S. Almond, the university's chief financial officer, summarized discussion from the Purdue board of trustees' regular meeting, saying these steps include:

* Suspending Purdue's special merit bonus program. The bonuses, unlike salaries, are provided on a one-time basis to acknowledge special performances. Bonuses had been scheduled for distribution in the January paychecks. This step will save approximately $3 million.

* Carefully examining all vacancies to determine if they should be filled. Purdue's strategic plan initiatives will guide decision making.

"The university is reviewing all open positions and will move forward only with those that are critical to our strategic goals, particularly as related to maintaining and enhancing our academic strength and the education mission of Purdue," Almond said.

"People are essential to our mission. If additional reductions are needed, salary increases in July likely will be limited and directed."

* Asking all departments to plan for directed and strategic budget adjustments. These plans will be modified as more is known about the state's fiscal condition.

President France A. Córdova emphasized that the university will, however, continue to support its core academic mission and ensure its best talent is retained. Leaders of each department and area will determine how best to apply the reductions, and in addition to focusing on the core mission of the university, they will be asked to minimize job loss, she added.

The bonus program, begun five years ago, allows for one-time bonuses to a few individuals in every department and represents every job classification in every area.

"We regret not being able to financially acknowledge these employees' excellence at this time," Córdova said.

Salaries, wages and benefits comprise 70 percent of Purdue's general fund budget, which supports the university's academic mission. After several leaner years, Purdue's salary budget increased 3.9 percent in July.

Writer: Jeanne V. Norberg, (765) 449-4986, jnorberg@purdue.edu

Contact: James S. Almond, (765) 494-9706, jsalmond@purdue.edu

Purdue News Service: (765) 494-2096; purduenews@purdue.edu

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