Personnel
Financial Exigency (6.17)
PURPOSE
The following policy has been designed to comply with and incorporate
all the provisions of Board policy No. 5:02:06:00. It is the intent
of this policy to provide emergency guidelines, including reductioninforce,
should the University experience a condition of financial exigency.
POLICY
It shall be the policy of Tennessee State University that, in
the event of emergency conditions as a result of financial exigency,
the University will explore all available methods to effectively
resolve the condition. A reductioninforce will be
considered as a viable alternative to resolve the condition.
PROCEDURE
Definitions:
Financial Exigency is a formal declaration by the Tennessee Board
of Regents that Tennessee State University faces an imminent financial
crisis due to a current or projected absence of sufficient funds
(appropriated or nonappropriated) for the campus as a whole.
The lack of such funds creates an inability to maintain current
programs and activities at a level sufficient to fulfill its educational
goals and priorities and the budget can only be balanced by extraordinary
means which include the termination of existing and continuing
academic and nonacademic appointments.
The following are general definitions of words and terms used
in this policy. These words and terms are subject to further qualification
and definition in the previous sections of this policy.
I. ACTION REQUIRED PRIOR TO THE DECLARATION OF FINANCIAL
EXIGENCY
Financial exigency results from an imminent fiscal crisis characterizing
the entire University; thus, the condition of financial exigency
may not be declared at a level below that of the institution (i.e.,
it may not be declared at the level of an academic or administrative
unit such as a school, department, or similar account-level unit).
In light of the gravity of consequences resulting from a declaration
of financial exigency, the process leading to a recommendation
to the Tennessee Board of Regents that financial exigency be declared
must be cautious, fair, well informed and as responsive as possible
to the interests of various segments of the University.
(a) The responsibility for initiating a proposal for declaration
of financial exigency resides with the President. Since recommending
the declaration of financial exigency is an extreme measure, that
responsibility requires the President to provide all appropriate
assurances and documentation that available and reasonable procedures
to reduce the expenditure levels of Tennessee State University
are exhausted and no efforts have been spared to enhance revenues.
(b) Prior to proposing the declaration of financial exigency,
the President shall share with the entire faculty or its representative
body and with representatives of other campus personnel constituencies
all pertinent analysis and documentation that, in his opinion,
demonstrates an imminent fiscal crisis for the entire University.
That analysis and documentation should be shared promptly and
with sufficient notice to all personnel constituencies (including
the representative faculty body); and opportunities should be
provided for discussions with and advice from those bodies, answers
to appropriate questions and general deliberations befitting the
University.
(c) After discussion and review of any advice from various personnel
constituencies, the President shall, if he remains convinced conditions
warrant a recommendation for declaration of financial exigency,
present the recommendation with full documentation to the Chancellor.
In addition to providing the Tennessee Board of Regents with a
recommendation to declare financial exigency, the Chancellor,
in consultation with the campus president, shall also submit a
statement of findings and conclusions which shall include at least
the following:
(1) A description of the current fiscal condition of Tennessee
State University, including the projected amount of deficit that
would result from failure to declare financial exigency.
(2) A projection of the fiscal condition that would result, in
the opinion of the President and the Chancellor, from general
types of action anticipated to be taken subsequent to a declaration
of financial exigency.
(3) An analysis of the reason for the current imminent fiscal
crisis characterizing the entire University, specifying, with
appropriate documentation, those identifiable factors contributing
to the crisis.
(4) A statement of assurance, with supporting evidence, that available
and reasonable procedures to reduce expenditure levels of the
University are exhausted, further retrenchment within existing
policies is not compatible with the objective of assuring maximum
protection for the academic programs of TSU and the educational
needs of students and efforts to enhance revenues have been carried
out in a responsible manner.
(5) A transmittal of any advice, alternatives or information in writing by any University personnel constituencies (including the representative faculty body).
II. ACTIONS REQUIRED SUBSEQUENT TO THE DECLARATION OF FINANCIAL
EXIGENCY
Should the Tennessee Board of Regents formally declare a state
of financial exigency at Tennessee State University, the President
shall, in a reasonable time and with appropriate documentation,
initiate a proposed plan to allocate necessary funding reductions
among the primary budgetary subunits (e.g., academic affairs,
student affairs, fiscal affairs, etc.) within the University.
The following procedures shall be followed:
(a) The President shall convene the University's Financial Exigency
Committee, the composition of which shall be broadly representative
of all personnel constituencies (including the representative
faculty body) and shall be defined in this policy.
(b) The President's proposed plan for allocating necessary funding
reductions to primary budgetary sub-units shall be reviewed by
the Financial Exigency Committee.
Budgetary subunits shall be reviewed by the Financial Exigency Committee. The Committee shall review the amounts of proposed reductions, evaluate proposed reductions in light of University priorities and consider administrative organization and academic priorities. It shall also consider the magnitude of proposed reductions in each primary budgetary subunit in light of factors prescribed by applicable state or federal laws regarding fair employment practices.
The Committee shall submit to the President in writing within
thirty days its response to the President's plan, which shall
include either an endorsement or a recommendation of alternatives.
The President shall consider any alternatives recommended by the
Committee and, within thirty days, shall indicate to the Committee
a final decision relative to the internal allocation of necessary
funding reductions. This final plan should be communicated broadly
to all personnel constituencies including the representative faculty
body.
(c) Heads of primary budgetary subunits, with broad and
clearly defined faculty and staff consultation, shall recommend
to the President plans for effecting their designated budget reductions.
Those recommendations from heads of primary budgetary subunits
shall include proposed reductions in programs or personnel, shall
achieve the designated reductions and shall respond to any inquiries
the President or the Financial Exigency Committee may direct.
(d) As a primary component of his or her review of plans submitted
by heads of primary budgetary subunits, the President shall
prior to accepting them submit the plans for review
by the Financial Exigency Committee.
This policy shall indicate general principles that the Committee
will consider in reviewing plans submitted by heads of primary
budgetary subunits. While policies may include other principles,
the Committee must consider at least the following general principles:
(1) Retrenchment other than reductioninforce should
reflect as its major priority maximum protection for the academic
programs of the institution and the educational needs of students.
(2) When an academic or administrative unit undergoes reductioninforce,
the principal consideration in determining which persons to retain
and which to terminate should be the maintenance of viable academic
or support programs within that unit.
(3) Personnel of affected academic or administrative units should
have clearly defined advisory involvement relative to determining
specific persons and minimal personnel needs or areas of specialization
essential to a unit's viability.
(4) To avoid the possibility of compromising the quality of highly
productive programs within the University and to recognize the
best interests of continued academic excellence, reductioninforce
cannot normally be accomplished on a strictly acrosstheboard
basis.
(5) Affirmative action plans should be carefully considered in
all personnel decisions.
(6) Unless an exception is made to maintain a viable academic
or support program (see #2 above) or for the reasons of affirmative
action (see #5 above), decisions as to the order of personnel
terminations in academic or administrative units should be made
in light of factors clearly defined in Tennessee State University
policies.
The financial exigency plan should specify clearly and in rank
order the role of defined factors in determining order of personnel
terminations in academic or administrative units under conditions
of financial exigency. Those factors shall include but
are not limited to tenure status, rank, seniority within
rank, local seniority within rank, length of service, performance
evaluations.
The Financial Exigency Committee shall submit in writing to the
President its response to the plans for recommended reductions
submitted by heads of primary budgetary subunits. That response
shall include either an endorsement or a recommendation of alternatives.
(e) After appropriate review of response by the Financial Exigency
Committee, the President shall indicate his or her acceptance,
rejection or amendments to reduction plans submitted by heads
of primary budgetary subunits.
The President shall communicate his composite plan for reducing
expenditures to the entire campus community.
(f) The President shall submit for approval by the Chancellor his composite plan for effecting budgetary reductions as required by the fiscal condition of the University. That transmittal must include the written response by the Financial Exigency Committee to both (1) the President's plan for allocating necessary funding reductions to primary budgetary subunits and (2) plans for the primary budgetary subunits for effecting their designated budget reductions.
If the Chancellor approves the plan for implementation, he or
she shall submit it as information at the next meeting of the
Tennessee Board of Regents.
III. PROCEDURES FOR TERMINATION OF PERSONNEL UNDER CONDITIONS
OF FINANCIAL EXIGENCY
Following declaration of the Tennessee Board of Regents that a
condition of financial exigency exists at Tennessee State University,
the President of Tennessee State University, having complied with
those actions required subsequent to the declaration of financial
exigency (see Section IV.), is authorized to carry out those actions
including reductioninforce, which are included in
the plan approved by the Chancellor. Reductioninforce
under this policy may include any personnel classification, including
tenured faculty members or probationary faculty members prior
to the end of their terms of appointment.
(a) The procedures for termination described in this policy are
in force only during a period in which the Tennessee Board of
Regents has declared Tennessee State University is in a condition
of financial exigency.
(b) An individual selected for termination shall receive prompt
written notification from the President. That notification shall
include the following:
(1) a statement of the basis on which the individual was selected
for termination
(2) an indication of the data or reasons supporting the choice
if it is not a clearly defined factor such as rank or tenure status
(3) a statement of the date on which the termination is to become
effective
(4) a copy of the declaration of financial exigency adopted by
the Tennessee Board of Regents
(5) such other information as the President may deem appropriate.
(c) An individual who receives notice of termination, as described
in Section b above, may appeal the decision as specified in Tennessee
Board of Regents Policy No. 5:06:06:00.
Tennessee State University shall provide in its policy on Financial
Exigency procedural provisions for a Faculty Hearing Committee
and for a Staff Hearing Committee. The Faculty Hearing Committee
and the Staff Hearing Committee shall ensure prompt hearings are
thorough and fair but need not be judicial in nature. Strict rules
of procedure (e.g., confrontation, crossexamination, and
formal rules of evidence) need not be required.
The following conditions constitute grounds for appeal by an individual
on notice of termination:
(1) established institutional procedures or provisions of Board
Policy 5:02:06:00 were not followed.
(2) appropriate criteria were not applied, including but not limited
to the allegation his or her selection constituted a violation
of the individual's academic freedom or unfounded or arbitrary
assumptions of fact were made.
The Hearing Committees shall not review the decision concerning
the declaration of financial exigency or the president's plan
for the amount of reduction to be assumed by each primary budgetary
subunit.
A recommendation will be sent from the Faculty or Staff Hearing
Committee to the President recommending he uphold or reverse the
action of termination, and the President will inform the appropriate
Hearing Committee and the individual of his final decision.
The final decision of the President may be appealed to the Chancellor
and, upon reaching a decision, to the Tennessee Board of Regents.
IV. CONTINUING RIGHTS OF PERSONS TERMINATED UNDER
CONDITIONS OF FINANCIAL EXIGENCY
No vacancy caused by a termination under conditions of financial
exigency shall be filled for a period of three years from the
time of notice of termination without first offering the position
to the person terminated (academic or nonacademic), provided
the person terminated keeps the institution informed of his or
her current mailing address. If the person previously terminated
is offered and accepts the same or closely similar position in
the same department from which he/she left, he or she will be
returned with the same rank and tenure status and salary level.
V. TERMINATION OF DECLARATION OF FINANCIAL EXIGENCY
If the financial health of the institution improves sufficiently, the President shall initiate a proposal for the termination of a declared state of financial exigency. The policies and procedures established by this policy shall continue in effect during the period of a state of financial exigency. At the termination of a declared state, action by the Tennessee Board of Regents shall cause all policies, procedures and bodies created in this policy for the sole purpose of making and implementing exigency decisions cease to exist.
REFERENCE
TBR Policy No. 5:02:06:00