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Policy

General

In the 2009-2011 Biennial Budget for the State of Ohio, the General Assembly provided: “…the board of trustees of any state institution of higher education, notwithstanding any rule of the institution to the contrary, may adopt a policy providing for mandatory furloughs of employees, including faculty, to achieve spending reductions necessitated by institutional budget deficits.” (Section 371.70.20 of Amended Substitute House Bill Number 1)

The University’s long-term financial stability depends on the ability to balance the operating budget each fiscal year. A “significant operating budget deficit” is defined as a documented substantial decline in the financial resources of the institution that is brought about by a reduction in state funding, loss of revenue from endowments or investments, decline in institutional enrollment, or by other action or events that compel a reduction in the operating budget.  The Fiscal Priorities and Budget Planning Committee (a standing committee of University Senate), the chair of the Classified Personnel Advisory Committee (CPAC), the chair of the Unclassified Personnel Advisory Committee (UPAC), and chair of Senate Executive Committee shall be consulted before a determination is made that a significant operating budget deficit exists and that a furlough is required. Consultation shall be understood to be a substantive opportunity to provide feedback before a determination is made.  The Fiscal Priorities Committee shall report its determination to University Senate.  University Senate shall be afforded an opportunity to respond within the time frame set by the President. The time frame set by the President shall not be less than fourteen days (14) from the date the issue was first presented to the Fiscal Priorities Committee.

Implementation 

If, after consultation, the President reasonably believes the University is facing a significant operating budget deficit, a furlough may be implemented. This policy supersedes all other University policies and applies to all employees regardless of source of funds, place of work or appointment terms or status, including faculty, unclassified administrative staff, and non-bargaining unit classified staff*.  A furlough may be implemented upon thirty (30) days advance written notice to affected employees.

The President or the President’s designee(s) will engage in timely and substantive consultation with the Senate Executive Committee, University Senate, and the leadership of the Classified Personnel Advisory Committee (CPAC) and the Unclassified Personnel Advisory Committee (UPAC) in planning for the implementation of a furlough.  Consultation may, by necessity, require intense and limited periods of time for planning.

Scheduling 

Scheduling of furlough days or portions of days shall be the responsibilities of the President or the President’s designee(s), but in no event will the University close completely.  Furloughs may be implemented on a differential, intermittent, or staggered basis based on pay/salary level, employee classification or nature of appointment.  For example, furloughs may take into account the essential operating and safety needs of the University, the availability of designated federal funding, or income generated by the division, department, unit, or program.  Days that the University is normally closed or days that may not normally be work days for certain groups of employees (i.e., Spring Break and the week between December 25 and January 1) may be designated as furlough days.

Classified staff represented by the AFSCME bargaining unit will follow Article 20 of the Collective Bargaining Agreement which provides for furloughs up to 90 days.

Employee Benefits and Contributions While on Furlough

Employees may not use accrued paid leave during periods of furlough. The University may allocate employees’ reduction in pay over the balance of the fiscal year for payroll purposes regardless of the pay period within which the furlough occurs.

1. Healthcare, dental care and life insurance benefits will not be affected by a furlough.
2. Employees’ continuous Miami service, review date, and employment status will not be affected by any period of mandatory furlough.
3. Employees will continue to accrue vacation and sick leave during a furlough.
4. Retirement contributions by both employees and the University will be affected by furloughs as contributions are based on actual earnings.

Employees remain responsible for making all employee contributions (i.e., healthcare, dental care, Flexible Spending Accounts, and 403(b) contributions) and all miscellaneous authorized deductions (i.e., credit union, charitable contributions, University payments).

Principles and Considerations for Furlough Proposals

• Furloughs are preferable to lay-offs and position eliminations when addressing temporary budget deficits.
• Furloughs should be thoughtfully implemented with careful consideration of both employee welfare and Miami's mission.
• Furloughing employees over 20 days in a fiscal year will be deeply painful and should be avoided if possible.
• Furloughs of employees earning $40,000 per year or less should be avoided if possible.
• Impacted employees should be consulted regarding whether they would prefer furloughs to be structured in a way that allows them to be eligible to apply for unemployment benefits or whether they would prefer to spread furlough days out as much time as possible. Employee preferences will be accommodated if possible but the operational and budgetary needs of the University take priority.
• Furloughs should be progressively graduated based on salary so that, where possible, employees earning less are the least impacted.
• Furlough days should be commensurate to reductions in pay and work.
• Employees should be provided with as much notice as possible before a furlough begins.
• Nothing in this Policy should be read as preventing employees from taking voluntary furloughs or salary reductions with the approval of their supervisor, divisional vice president and the appropriate personnel office.

Related Form(s)

Not Applicable.

Additional Resources and Procedures

Not Applicable.

FAQ

Not Applicable.

Policy Administration

Next Review Date       

7/1/2023

Responsible Officers

• Associate Vice President for Human Resources
• Director of Academic Personnel Services
• Assistant Provost for Academic Personnel 
• Sr. Vice President for Finance and Business Services

Legal Reference

Section 371.70.20 of Amended Substitute House Bill Number 1

Compliance Policy

Yes

Recent Revision History

Revised September 2020

Reference ID(s)          

• MUPIM 4.13
• OAC-3339-4-13

Reviewers

• Associate Vice President for Human Resources
• Director of Academic Personnel Services
• Assistant Provost for Academic Personnel 
• Sr. Vice President for Finance and Business Services
• University Senate