Ohio University issued a university-wide hiring freeze yesterday in response to continued economic uncertainty and the potential for future state budget cuts.
Obviously this is being driven by uncertainties in the national and state economy
said Ann Fidler, interim associate provost for strategic initiatives, adding that the university had heard from people in the know there was a good impression OU would be hit by future state budget cuts early next year.
Faculty and staff were alerted around noon yesterday in an e-mail sent by President Roderick McDavis. University Communications and Marketing refused to make McDavis available for comment, saying his e-mail spoke for itself.
Over the past two weeks the news about the evolving economic situation at the state and federal level has intensified McDavis said in the e-mail. These events underscore the importance of being prepared so we can continue to foster academic excellence and remain a strong institution
now and in the long run.
The hiring freeze will exempt faculty searches already in progress, including those already approved by Executive Vice President and Provost Kathy Krendl and staff positions the university began advertising for Sept. 19 or earlier. The freeze will also exempt positions already receiving Vision Ohio funding.
Departments will be able to request an exemption for positions they feel are essential to the first year of Vision Ohio, Fidler said. Krendl and Bill Decatur, senior vice president for Finance and Administration, will review the exemptions in collaboration with McDavis.
The hiring freeze will allow the university to preserve funds. OU is still creating a formal contingency plan ' as requested by the Ohio University Board of Trustees earlier this year ' in the event of more state budget cuts or national economic hardships, said Rebecca Vazquez-Skillings, assistant vice president for budget planning and analysis.
Every year OU reserves funds from tuition and state funding that it sets aside in case enrollment is significantly lower than usual. OU may have to use those funds if the hiring freeze does not preserve enough revenue, Vazquez-Skillings said.
After a while you get a gut feeling
said Dennis Irwin, dean of the Russ College of Engineering and Technology, who added that the engineering college did not have many faculty vacancies. I think it's a prudent course for the university; the economy of Ohio doesn't look good over the short term or even over the long term.
Gov. Ted Strickland announced two budgets cuts this year, both which largely exempt state-funded higher education. A $733 million cut was announced last January. A 4.75 percent across-the-board cut to state agencies ' totaling $540 million ' was announced earlier this month, dealing an $845,000 cut to OU's College of Osteopathic Medicine, Voinovich School of Leadership and Public Affairs and the general operating budget.
University officials said they have had no problems generating revenue, citing rising enrollment and retention rates, and are planning no further cuts this fiscal year. OU's Budget Planning Council will discuss further preemptive measures this quarter.
We see a storm brewing in the next fiscal year
Decatur said. We think it's a very prudent action right now to help us with what are going to be some very tough fiscal times.
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