Emory University said Tuesday it is implementing temporary, 5% pay cuts over the next few months for many faculty and staff making more than $75,000 a year.
The cuts are necessary to help the university manage its finances through the coronavirus pandemic, Emory said in a letter obtained Tuesday by The Atlanta Journal-Constitution. The pay cuts will begin in September and expire at the end of the year, the letter said.
“The limitation on campus density is resulting in lower revenue from the loss of housing, dining, and student fees, along with lower net tuition revenue from holding undergraduate tuition and fees flat for this academic year,” the letter said. “These lower sources of revenue are coupled with significantly higher costs associated with keeping our community safe. As a result, we are in the challenging position of operating with fewer resources than anticipated at a time when unexpected and unprecedented demands are being made on us all.”
> RELATED: How Emory University is cutting back amid pandemic’s fallout
Emory said the pay cuts will not impact employees making less than $75,000 a year, postdoctoral staff, medical house staff and those affected by cost-cutting measures already taken by Emory Healthcare and the School of Medicine for clinical faculty.
Emory officials noted its senior leadership previously agreed to take 15% pay cuts as part of a budget-reduction plan that included suspending merit pay increases and delaying some major campus projects.
Emory, which had more than 15,000 students last school year, is the largest private university in Georgia and, by some estimates, the largest employer in the state with about 31,000 full-time employees. It also has one of the largest financial endowments in the nation, nearly $8 billion as of February. The university, though, has said the endowment cannot serve as a reserve fund or be used to replace lost revenue.
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