CCU employees will face a 20-day furlough due to coronavirus-related budget shortfalls
A vast majority of Coastal Carolina University employees will be furloughed for up to 20 days due to budget shortfalls caused by the coronavirus economic downturn, according to a plan The Sun News has obtained.
Employees making more than $35,751 will be furloughed for 20 days without pay, multiple sources confirmed.
Other employees may see furloughs up to 15 days depending on their salaries. Those making between $33,101 and $33,600 will have one furlough day; between $33,601 and $34,350 will have five days; $34,351 and $35,000 will have 10 days; and $35,001 and $35,750 will have 15 days.
Multiple sources confirmed that employees were notified of the plan Tuesday night.
“This has been such a hard decision to make, requiring faculty, staff and administration to take furlough days, and it weighs heavy. It is our hope that, with everyone pulling together, this step combined with other expense adjustments will make the difference needed to stabilize the budget,” CCU President David A. DeCenzo said.
Furloughs can be taken throughout the 2021 fiscal year. The plan hopes to save $7 million in the Fiscal Year 2021 budget, which beings July 1.
Employees will still receive their benefits during the furlough. Since it is the summer, employees can choose to take the furlough all at once during July. In South Carolina, furloughed employees may seek unemployment benefits.
In the event of a natural disaster, some employees on furlough may be asked to return.
Any employee making less than $33,100, on a H-1B visa or having an externally-funded position will not be furloughed. H-1B visa employees can take voluntarily furloughs.
CCU has discussed furlough plans since April, but no specifics had been released to the public. A Freedom of Information Act request for more information about a furlough “human resources plan” referenced in a meeting wasn’t responded to until after the deadline, and then the FOIA office said no document existed.
University leaders needed permission from the South Carolina Human Resources Department to begin the furlough program. Statehouse leaders passed a budget that maintained current spending levels, meaning CCU wouldn’t get additional money from the state.
Like many universities across the country, CCU is experiencing financial hardships due to the coronavirus economic downturn. Higher education institutions across the country are announcing similar cost-cutting measures.
While the university plans to have class in person, enrollment may decrease due to the burden of paying for school or due to students feeling unsafe to return.
Joe Moglia, who is chairman of athletics, executive director of football and an executive advisor to CCU’s president, confirmed Wednesday that he will forego his annual salary of $177,000 for the 2020-21 school year to assist the university financially.
In addition, the CCU Board of Trustees decided not to raise tuition costs. While that may help some students afford to attend, it creates budget constraints. University leaders expected a 15 percent reduction in revenue across the board, according to the furlough plans.
“The University does not expect to experience a full recovery of the enrollment based revenue for at least three years,” the plan states.
CCU’s Board of Trustees has a scheduled meeting on Friday at 10 a.m.
Reporter Alan Blondin contributed to this report.
This story was originally published June 24, 2020 at 10:38 AM.
