Sunday, June 14, 2009

Tech Buyout Saves Money

TTU Public Affairs Director Monica Greppin reports:

Tennessee Tech University could save as much as three-point-three million dollars each year in salary expenses as a result of its voluntary buyout program offered to employees this spring. All 58 employees who applied for the buyout and met eligibility requirements were accepted. They will leave the university at the end of this month. The university’s goal was to get 40 applicants. The university’s cost will be approximately one-point-nine million dollars, according to Mike Cowan, Tech’s director of human resources. Annual savings are expected to total about two-point-nine million the first two years and three-point-three million dollars thereafter. Stimulus funds provided by the federal government will be used to offset the immediate cost of the program. The decision to accept all of the applicants increases the cost of the program but increases the long-term savings as well. It also gives campus officials the flexibility to fill a few priority positions. Approved faculty will be able to participate in post-retirement services, allowing them to teach some classes on a part-time basis for the next two years until stimulus funding is depleted and normal attrition allows university officials to meet class staffing needs. Tech officials are planning to trim twelve million dollars from the university’s budget