NAU's cost-cutting measures to result in some layoffs, campus closures

FLAGSTAFF, Ariz. -Northern Arizona University President John Haeger on March 26 announced several cost-cutting measures on campus and at Distance Learning sites that will result in about 45 layoffs in Flagstaff and statewide.

"We have been working hard to minimize the number of layoffs, but we cannot escape the reality that 83 percent of our budget goes to salaries and benefits," Haeger said. "We have weighed our decisions carefully to cope with a severely constricted budget while protecting our core mission of undergraduate education."

NAU is dealing with a $21.3 million budget reduction for Fiscal Year (FY) 2009 and a likely worsening budget year in 2010. The reduction in force, along with other changes on campus, is expected to achieve about $13.5 million in budget reductions for FY 2009, which would carry forward into permanent base cuts for FY 2010. The $7.8 million balance will come from other institutional resources.

The budget reduction strategies of the Academic Affairs division will be announced separately, around mid-April, as it is working with a different timeframe related to developing the fall 2009 schedule of classes. So far, the plans include adopting improved technology, consolidating functions and eliminating some services.

The two areas with the largest number of personnel changes are Distance Learning and Enrollment Management.

Distance Learning will be shifting from its 30-year-old videoconferencing and interactive television system to new web-based technology, which will result in the elimination of ITV staff. Four low-enrollment NAU sites will close in Nogales, Payson, Globe and Holbrook, and an office in Avondale will be closed, amounting to savings of nearly $140,000 a year. Seven of the Distance Learning layoffs are in Flagstaff while another 16 are in sites across the state.

Enrollment Management will see a reduction in force of 14 along several areas, including closure of the pharmacy in the Fronske Health Center. The university is also issuing about 10 contract reductions and partial layoffs.

For FY 2010, the university also will issue six-month contracts to appointed personnel and administrators with a six-month renewal option to round out the fiscal year. Traditionally, contracts have been issued for 12 months. The change allows NAU greater budget flexibility as the fiscal year proceeds.

Haeger said that it is important to note that NAU is not reaching its budgetary goals solely by cutting personnel.

"We have instituted several other cost-saving measures as well," he said.

More than 100 positions have been left vacant this past year as the result of a hiring freeze. Computer labs in residence halls are being closed, and new software/hardware licensing and support costs are being delayed. The university also stopped development of its new occupational therapy and physician's assistant programs and is implementing a university-wide furlough program. The furlough program is expected to save about $3 million overall. Revenue-generating strategies also are being considered.

"Our next step is to prepare for the FY10 budget," Haeger said. "We are assessing all possibilities and anticipate working closely with the Arizona Board of Regents, legislative leaders and the governor to arrive at a budget that will allow us - and the state - to deal with the recession and still move forward."