Hiring freezes and budget cuts

Posted by admin on Mar 25, 2009 in News | 0 comments

Amid recent global economic downturn, Trinity Western University president Dr. Jonathan Raymond announced the university will be taking action “to equip [TWU] to move forward.”

The “financial and operational strategic action,” calls for a mandated reduction of seven per cent to TWU’s comprehensive budget, a hiring freeze, replacement review process, and the suspension of all faculty and staff salary increases and enhancements. Salary increases have been put on hold, but this action will be reevaluated quarterly.

“We know we have a certain amount of turnover [in employees],” Raymond said. When someone leaves, in retirement, for example, they may be replaced, positions may be moved around, the position may be eliminated or just put on hold.

“We’re not into a lot of surgery,” Raymond said, “We’re into internal medicine.”

Provost Dr. Dennis Jameson has been given the mandate of increasing operational and program efficiencies, as well as creating a sustainable business model by permanently reducing the overall expense of TWU to meet the financial imperatives within a two-year period. These are to be met “while delivering appropriately resourced, high quality educational programs and experiences,” said Raymond.

In the hopes to reduce personnel costs Raymond realizes that firing is not the key. There is a strategy that may result in letting some people go, but it is not without discretion. He gives the example of 13 people working in an operational setting. “Can just as good a job be done with 12 people and updated software?” he asks. “These are the kinds of tough decisions that need to be made.”

President Raymond confessed that economically, he has never seen anything like what the world is experiencing today. “It’s not about cuts, it’s about responding in the present economic crisis. We are laying track for next year.”

While Western Canada is better off than some, “we’re being very careful,” Raymond said. “We have an external covenant [with the bank] to end the fiscal year in the black. They are watching us very carefully that we’re operating at a healthy level.”

“We are tuition driven. Our endowment has taken a three million dollar hit. The interest on that would normally go to scholarships,” Raymond said. The university has tripled financial aid gifts in the past few years. Raymond wants the reduction in the budget to work towards ensuring that financial aid is still available to students.

“It starts with the action I take,” Raymond said. “I also need to work harder to raise more money.”

Raymond is confident that his new economic model, coupled with previous measures taken during his two-and-half year tenure will allow the university to move forward. Some of these measures have included the establishment of the Financial Strategies Team to help improve the university’s financial efficiency, the Great Campaign for Students to improve enrollment, and the development of the strategic direction document Envision the Century, which sets out the direction and future of TWU.