Controlling Policy

Notwithstanding any other policy, regulation or university or campus practice or procedure, if the Board of Regents determines that a condition of financial exigency exists either in the university generally, or in a major administrative unit or an academic or other unit of a major administrative unit, then the layoff or termination of tenured faculty, non-tenured faculty and other employees before the end of their employment term will be handled in accordance with this financial exigency policy. As used herein, the term "unit" means any identifiable component of the university at any level of its organization which has an annual budget for the operation of such component.

Determination of Financial Exigency

Financial exigency exists when the Board of Regents determines that a shortfall in projected revenues for general operations, as compared with projected expenditures over the same period, will have a material adverse effect on the operation of the university generally, or on a major administrative unit or an academic or other unit of a major administrative unit. In the event of reduced appropriations, declining enrollments, or other actions or events that compel a reduction in the operating budget of the university generally, or in a major administrative unit of the university or an academic or other unit of a major administrative unit, the Board of Regents may, in the exercise of its educational and fiscal responsibility, decide to reduce the operation of, to modify, or to close one or more major administrative units of the university or an academic or other unit of a major administrative unit. Such reductions, modifications, or closures may require the unilateral reduction of salaries; modification of terms of employee appointments, including the duration of appointments, layoffs or terminations of tenured faculty, non-tenured faculty, or other university employees before the end of their employment term. The Board of Regents will not be required to reallocate resources from one unit to another to avoid a determination of financial exigency in a major administrative unit or an academic or other unit of a major administrative unit of the university. Any action taken by the board and university in response to a financial exigency will be developed with the understanding that the action will be consistent with the basic mission of the university to provide quality education for its students.

Within the limits of the budgetary constraints, the university will make reasonable efforts to ensure that students affected by a financial exigency determination will be allowed to complete their programs at the affected unit or by transfer to another unit of the university.

The determination of the existence and extent of financial exigency affecting the university generally, or any major administrative unit or an academic or other unit of a major administrative unit is the sole responsibility of the Board of Regents, but the president of the university may request such a determination by the board. When such determination is made, this policy and implementing regulations will take precedence and control over those applicable policies, regulations and other practices and procedures which govern normal operating procedures.

Declaration of Financial Exigency

In the event the board determines that a condition of financial exigency exists either in the university generally, or in a major administrative unit or an academic or other unit of a major administrative unit, it will make a declaration of financial exigency. The declaration of financial exigency will:

1.	Contain a statement that a bona fide financial exigency exists and the reason(s) for the financial exigency;
2.	Specify which unit(s) of the university are affected and provide an explanation of the appropriateness of such choice(s);
3.	Specify the level of cost reductions judged to be necessary to deal adequately with the financial exigency; and
4.	Specify whether services, programs or positions, or a combination thereof, are to be reduced or eliminated in order to produce the necessary cost reductions. If any positions are to be reduced or eliminated, the declaration will describe the efforts taken in the current and prior fiscal years to reduce costs without the reduction or elimination of filled positions.

Priority in Cases of Position Elimination Resulting from Financial Exigency

1.	In the event of a declaration of financial exigency which calls for the elimination of positions, the order in which employees in the affected unit(s) will be terminated will be as follows: a. Employees on overload or additional assignments, but only to the extent of the overload or additional assignment. b. Part-time employees on temporary appointments. c. Full-time employees on temporary appointments. d. Part-time employees on regular appointments. e. Full-time employees appointed for terms tied to specific events or projects or grant expirations (term appointments), full-time regular employees, and non-tenured faculty. f. Tenured faculty.
2.	The president or the chancellor(s) designated by the president may depart from the priority order for position elimination resulting from financial exigency specified above if after consultation with the affected unit(s) and consideration of the educational mission of the unit(s), the financial savings to be realized, the need for continuity, and the qualifications of the remaining employees to perform the necessary tasks, the president or the chancellor(s) designated by the president determines that the best interests of the university as a whole so requires.
3.	An exempt employee whose position is eliminated because of financial exigency shall be entitled to a minimum of 8 calendar weeks of notice in advance of the cessation of employment.
4.	A nonexempt employee whose position is eliminated because of financial exigency shall be entitled to a minimum of 4 calendar weeks of notice in advance of the cessation of employment.