Fiscal Year 2010 Temporary Salary Reduction Plan

To: The UMB Community

From: President David J. Ramsay, D.M., D.Phil.

This morning the Board of Regents of the University System of Maryland adopted a resolution that responds to Governor O'Malley's request that all USM employees receive furloughs or temporary salary reductions coupled with increases in paid administrative leave for the remainder of this fiscal year.

As I wrote to you earlier this week here at UMB senior administrators, together with faculty, staff and student leadership, have been involved in constructing our plan and the plan has been discussed with union representatives.  In line with the Regents' Resolution, Chancellor Kirwan has now officially approved our plan.

Attached is a summary document that contains the elements of our plan.  As I indicated in my earlier correspondence, we have based our plan on fairness and equity so that those who earn more must take larger salary reductions.  While our FY 2010 has some similarities to the furlough plan imposed last spring, there are some very important differences, as follows:

  1. We will close the campus on December 23 and 24, thereby extending our holiday break.  Faculty and staff included in the plan will receive paid administrative leave for those two days.
  2. Unlike last spring where employees were required to take a certain number of furlough hours in each two week pay period, the new plan provides flexibility and  choice as to when administrative leave will be taken.

In most other respects, you will find the new plan to be quite similar to last spring's plan.  We have also developed an expanded set of Frequently Asked Questions (FAQs) in an attempt to respond to specific questions you may have about various aspects of the plan.  These FAQs may be found at http://www.umaryland.edu/president/FY2010_TSR_FAQs.html

Let us try not to let these economic bad tidings blunt the incredible progress this institution continues to make, due to our very talented and hard-working faculty and staff and our dedicated students.  Earlier this week we announced that our faculty had brought in over $517 million in sponsored grants last year, and we had the 'official' opening of our long-awaited Southern Management Corporation Campus Center.  Next week we will play host to the World Congress on Stem Cell Research.  It is clear that at our university, we have not and shall not let our financial challenges stop our schools and programs from continuing our march to excellence.


 
COMPONENTS OF THE UNIVERSITY OF MARYLAND, BALTIMORE
TEMPORARY SALARY REDUCTION PLAN

September 18, 2009

Principles and Exclusions

  1. The temporary salary reduction plan at UMB includes temporary reductions of salary for most employees, coupled with the opportunity to earn paid administrative leave.  Benefits, including retirement, health or accrual of leave will not be reduced. 
  2. These temporary reductions are tiered with higher paid employees receiving larger reductions.  State-support savings will be returned to the State of Maryland; sponsored research funds will remain with the grant; clinical revenue will remain with the clinical programs.
  3. Essential services, including class schedules, necessary student services, and patient care activities will be maintained.  Overtime or compensatory time may not be granted to compensate for the loss of services of employees on paid administrative leave.
  4. Because of the difficulty of meeting contractual requirements of sponsored research, this plan excludes all faculty or staff members whose salaries, as of September 1, 2009, are funded 90% from externally sponsored programs. This plan also does not apply to faculty who are employed in whole or part by the Veterans Administration.  It also does not apply to student employees, post-docs, residents, fellows and/or holders of H1B visas.  Because of safety concerns, the plan also excludes police officers and police communication staff and staff at the School of Pharmacy Poison Control Center.

TEMPORARY SALARY REDUCTION SCHEDULE*

CategorySalary Level% Reduction Remainder of FY 2010
AUnder $30,0001.0%
B$30,000-$39,9991.5%
C$40,000-$49,9992.0%
D$50,000-$69,9992.5%
E$70,000-$99,9993.5%
F$100,000-120,0004.5%
GAbove $120,0005.0%

 
*Reductions will begin on September 27 and continue through the remaining nine months of the fiscal year.

Paid Administrative Leave

  1. The campus will be officially closed for the holiday break for December 25 through January 3.  Employees included in the temporary salary reduction plan will receive two additional paid administrative leave days on December 23 and 24.  Employees not included in the plan who wish to be on holiday on those days must use annual or personal leave.
  2. All employees included in the plan with salaries above $30,000 will be entitled to receive additional paid administrative leave in proportion to their temporary salary reduction.  These additional leave days are tiered in accordance with the temporary salary reductions and range from: 1 day (category B) to 8 days (category G) as follows:

 

CategoryAdditional Paid Administrative Leave Days*
A0
B1
C2
D4
E6
F7
G8


These additional paid administrative leave days will not carry over past June 30 and, to ensure that essential services are maintained, may only be taken after consultation with supervisors.