[The following was approved by the Board of Trustees of Southern Illinois University on June 14, 1984, and appears as SIU Board of Trustees 2 Policies C.1.e-i.]
- Declaration of a fiscal emergency and specific direction to cope with such emergency lie within the authority of the Board.
- It shall be the responsibility of the Board to determine that a fiscal emergency exists and to assess the extent of that emergency.
- A fiscal emergency as recognized by the Board may vary in degree, ranging from a temporary financial crisis to a long-term loss of resources.
- A short-term fiscal emergency is the condition of financial necessity which results when a decline in financial support is such as to require a reduction within the fiscal year in the personal services budget exceeding that which may be accomplished by attrition or non-renewal of term positions or other such measures after all workable reductions in support and operational costs have been made.
- A long-term fiscal emergency is the condition of financial exigency which results when an imminent financial crisis will require long-term programmatic reductions and termination of tenured faculty.
- A declaration of fiscal emergency for either institution or for the system will be considered by the Board of Trustees when a proposal to that end from a chief executive officer to the president (or by the president for the Office of the Board of Trustees/Office of the President) is placed on the Board agenda.
- Representatives of the concerned university constituencies shall be consulted as far in advance as possible and continuously involved in making the decision to ask that the Board declare a condition of fiscal emergency.
- A matter proposing the declaration of a fiscal emergency and approval of a plan developed to deal with that emergency shall contain the following information:
- A description of the fiscal situation which makes the action advisable;
- A description of specific economy measures, such as the reduction of support costs, freezing of vacancies, non-renewal of term positions, and the like, which have already been invoked in an effort to deal with the situation;
- A description of the proposed action;
- An explanation of how the proposed scope and manner of execution of the proposed measures are proportional to the fiscal emergency and will cause the least possible disruption of the educational process and will inflict minimal hardship on employees;
- An indication of how employees will be notified of the measures to be implemented by the proposed action and the method and period of notice to apply before that implementation;
- A specification of the exemptions from the proposed action, if any, which will be required to safeguard the campuses and the conduct of uninterruptible activity if the proposed action is authorized, and an indication that the proposal otherwise has general application across the university employment spectrum, including administrative personnel;
- A report on the manner in which the constituencies have had an opportunity both to review the situation and the proposed action and to advise the executive officer;
- An indication of how the proposed action will apply to civil service employees in terms of established civil service rules and regulations.
- The Board will authorize actions to adjust university operations to the limitations of a declared fiscal emergency.
- The Board must be satisfied that all reasonably possible economic measures have been taken before authorizing a reduction in personal services.
- The Board will authorize procedures commensurate with the magnitude of the fiscal emergency. Such procedures may include but are not limited to measures such as invoking a mandatory leave without pay for all employees in a declared financial necessity situation or such measures as long-term programmatic reductions requiring termination of appointment for employees with and without tenure in a declared financial exigency situation. Such procedures will be open to review and comment by administration and constituency bodies.
- In a fiscal emergency situation, if budget reductions across the board are mandated by the Board, each basic academic or service unit will be involved in distributing its specific program and personnel changes.
- In a financial exigency situation, if budget reductions mandated by the Board are to be made programmatically, the administration will involve an appropriate faculty or constituency body in determining where, within the overall academic or other program, termination of appointments may occur.
- Any actions affecting an institution resulting from a declaration of fiscal emergency shall recognize the personnel policies of that institution so far as they are not in conflict with the fiscal procedures approved to cope with the emergency.
- A declaration of fiscal emergency will be in effect only during the fiscal year for which it is declared.
- Employees who receive notices that their appointments are to be terminated or who are placed into a leave of absence status because of a fiscal emergency shall have the right to appeal through appropriate university grievance procedures.
- Pursuant to 2 Policies of the Board (C.1.c.3), the basic term of faculty appointment remains the academic year, and individual contract renewals which reduce the period of employment to not less than an academic year will continue to be at administrative discretion.