4-20-09: Duke: Questions on the Economy

Durham, NC -- As university employees hear more about plans for a smaller Duke, two questions are on the minds of many: Will there be a retirement buy-out package and will there be layoffs?

In advance of Tuesday’s Primetime employee forum on the economy, staff and faculty have submitted dozens of questions; most have focused on the above two issues. During Primetime, four university administrators will discuss these and other questions related to Duke’s announced goal of reducing its budget by $125 million over the next three years.

The forum is scheduled for noon in the Griffith Film Theater at the Bryan Center.

Because there is limited parking available in the Bryan Center Parking Deck, employees are encouraged to use university transit. The event will also be webcast live for those unable to attend and posted on iTunes U afterward.

The panel includes Provost Peter Lange, Executive Vice President Tallman Trask III, Vice President of Finance Hof Milam, and Vice President of Human Resources Kyle Cavanaugh.

The panel will discuss the university’s budget challenges, the steps being taken to address them, and the implications for the future of Duke. About half of the event will be dedicated to an open question-and-answer segment with the audience. The administrators will also provide updates on the university’s financial situation and the discussions of the various university committees exploring budget issues.

In March, President Richard H. Brodhead told the Duke community that the university was planning on reducing its budget by $125 million, using its current reserves to spread the cuts out over three years. He also indicated that because personnel costs constitute some 60 percent of the university budget, the number of employees would likely decrease over the next three years.

The questions submitted for Primetime make it clear that Duke employees are aware of those numbers. One question asked, “I have heard a rumor that there maybe retirement buy-outs for employees with long service records. Is this true?”

Another long-time employee expressed concern about the financial consequences of retiring during a recession. “I will have 30 years at Duke in May, and I'll be 62 in November. Would I be better off retiring or waiting on a buy out package?”

Others focused on possible procedures for determining layoffs, if any are deemed to be necessary. The university has announced it would explore a variety of steps before resorting to layoffs. Some of the steps taken already include a policy requiring executive approval for posting and recruiting of any jobs and the creation of an administrative reform committee charged with identifying ways to improve efficiencies and reduce costs in Duke’s operations to help strengthen the university’s academic mission.

http://news.duke.edu/2009/04/pforum.html