Johns Hopkins University Considers Pay Cuts, Furloughs, Layoffs To Offset Losses Related To COVID-19 Pandemic
BALTIMORE (WJZ) -- Like many academic institutions Johns Hopkins University is looking to offset losses related to the coronavirus pandemic.
"Ever since we decided to end our on-campus instruction for undergraduates, graduate, and professional students; to suspend the lion's share of our lab-based research program; and to halt elective medical procedures, the university has suffered a dramatic and unprecedented contraction. More than 1,200 employees have been rendered idle because they are unable to perform their duties. Many more are working off-site but at significantly reduced levels of productivity," a letter to the university community reads.
In a letter, university president Ronald J. Daniels expressed how they will help mitigate a projected loss of $100 million in fiscal year 2020 and $375 million in fiscal year 2021 if no actions are taken.
"The magnitude of the challenge we face is unlike any we have experienced in recent memory, but it is one that we can and will overcome. It will require difficult sacrifices from all members of our university community, including a one-year suspension of contributions to employees' 403(b) retirement plans, a freeze on base salaries, restrictions on hiring, and a pause on most capital projects. Provost Sunil Kumar and I are reducing our salaries for the next fiscal year by 20 percent, and deans and university officers are cutting their pay by 10 percent. These and other actions are set forth in detail below," Daniels stated.
CORONAVIRUS COVERAGE:
- Coronavirus Resources: How To Get Help In Maryland
- What We Know About Coronavirus In Maryland
- Latest coronavirus stories from WJZ
The university did not reimburse students for tuition but did reimburse students for the remainder of the spring semester of housing, dining, and student service charges at a cost of $12 million.
"We also extended more than $5 million in unanticipated financial support to students and their families during this difficult period, including in the form of direct emergency grants for essential needs, continuity of wages for suspended on-campus employment, and relief from summer work requirements as a part of financial aid," Daniels said. "We know we will see even greater demand for investment in student aid in the coming months, and it is essential that we continue to meet our promise to make a Hopkins education as accessible as possible."
Here's a list of some of the ways the university will recoup its losses:
- In fiscal 2021, the university will enact a one-year suspension of employer contributions to 403(b) and 457(b) retirement accounts
- In recognition of the sacrifices that will be required across the university, Provost Kumar and I will reduce our salaries by 20% in the next fiscal year, and our deans and university officers will reduce their salaries by 10%.
- The university instituted a general prohibition and review of base salary increases effective April, and we will continue this hold for the next fiscal year (ending in June 2021).
- Staff promotions will be considered on a case-by-case basis and will require the written approval of the dean or division director.
- For staff positions—the university is restricting hiring through fiscal 2021.
- For academic positions—the deans will review all approved or planned faculty searches with the provost (including those with donor support) to jointly determine which should continue and which should be paused.
- The university has halted new capital projects over $100,000 through FY21, including information technology and equipment purchases, with exceptions granted for projects that address critical life safety or systems issues or meet an urgent strategic need.
- Due in part to the response to COVID-19, recent reductions in non-personnel expenses are expected to continue into the next fiscal year.
Read the letter to the JHU community here.
For the latest information on coronavirus go to the Maryland Health Department's website or call 211. You can find all of WJZ's coverage on coronavirus in Maryland here.
