Ohio University President Roderick McDavis announced in a video message Friday that some employees will be laid off as a result of a $15-million budget hole.
We are still facing multimillion dollar deficits
McDavis said. As with many of our peers in the state we too must meet the new economic realities in a straightforward manner.
To reduce the number of layoffs, McDavis said eligible employees will be given the opportunity to participate in an early-retirement program.
The Board of Trustees voted to give the president the power to implement any of three employee buyout programs in January.
OU will at least implement the Early Retirement Incentive Plan, which is required by law if a university plans to lay off 50 or more employees because of budget cuts.
McDavis gave few details of the layoff plans, but noted the number of administrative and classified employees that opt for early retirement will affect the number of layoffs.
We estimate that several hundred employees are eligible. ... But we will not know for several weeks the exact number of layoffs we may ultimately be forced to make McDavis said.
According to the board's January agenda, 396 employees are eligible for the buyout plan -116 administrative staff and 280 classified employees. The plan would allow employees to retire with a year's salary and either a $5,000 lump sum or six months of life insurance coverage.
OU could save about $5 million in salaries next year if all eligible employees took the buyout, according to estimates presented at the January meeting.
Savings gained from the retirement program hinge on the number of employees who will have to be replaced.
University spokeswoman Katie Quaranta said administrators will not comment on the layoffs. The president said that Bill Decatur, senior vice president for Finance and Administration, will distribute more detailed information about the layoffs this week.
OU has introduced a voluntary retirement program twice since 2003 to avoid layoffs. During the first buyout in 2003-04, 192 employees took two-year buyouts, saving OU $5.1 million annually. The 2006-07 buyout included 132 employees and saved OU $2.5 million annually.
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Wesley Lowery
