Layoffs, freezes possible in future

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Central Michigan University is preparing its staff for economic troubles that could face the university in the coming years.

The Professional and Administrative Communicator from CMU for April 2009 states CMU could see future hiring freezes.

“As the economic impact of the recession and the effect on state appropriations becomes clearer in the coming weeks and months, future salary freezes and reductions, furloughs and possibly even layoffs may become necessary,” the document states.

David Burdette, vice president of finances and administrative services, said though the communicator discussed possibilities, nothing is certain yet.

“We’re looking at two, three, four years down the road. As the governor and legislators go over higher education funding, clearly less money is available,” he said.

Burdette said the words of warning from the communicator gave many different options and each is being looked at individually for the university.

“Clearly nothing is happening with them, but all are possibilities, but none may happen,” Burdette said. “Two years from now, federal stimulus money is going away, you have to think of all these things.”

Burdette said he did not believe any cuts or freezes would be happening to staff this year, but what happens financially with the state could shape the next few years.

“The next two to three years are critical depending on the economy. With enrollment and unemployment the next three to five years is in murky water,” he said.

Maxine Kent, associate vice president of Human Resources, said there are many different things deciding the freezes or possible layoffs including tuition, enrollment and financial situation for the state. She said because of the financial uncertainty of the time, University President Michael Rao initiated the Senior Staff Budget Advisers to begin preparing for possible trouble.

“The group’s strategy is to start planning ahead, look at the areas we can possibly cut,” Kent said.

Kent said she thinks the current recession has yet to really hurt the university but believes looking at the current financial situation of the state, CMU might be facing some problems.

“What we are seeing is where it will hit the university. If it doesn’t hit us in ’09-’10, then probably ’10-’11 and if not then for sure ’11-’12,” Kent said.

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