FAQ
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Questions as of April 9, 2009
1. How many people are being laid off or having their appointments reduced?
As Anne reported in March 30’s Take One, all staff members whose positions are vulnerable to layoffs or reduced appointments were notified by the end of March. It is impossible for us to give a concrete number, because some people will choose to apply for one of the retirement programs that the university is offering, and we will not know the results of the staff retirement incentive (SRI) program until mid-April. Anne will share the results of those decisions, as well as the final figures on layoffs and reductions, at the all-staff meetings on April 22 and 23.
2. Will the library know in April what the 2009/2010 budget will be?
Yes. We are submitting our preliminary budget in early April. The preliminary budget is based on the planning parameters the university gave us. The budget is subject to final approval by the Board of Trustees in May, but we do not anticipate any changes to its parameters or size.
3. Is there a possibility that central administration will ask for additional savings in the middle of the year?
There is no guarantee that this will not happen, but we have no indication that the university is planning to do it.
4. Are the SRI program savings considered central savings or library savings?
The Library retains the SRI savings for positions in the endowed library units. We plan to reserve much of these savings to apply against future budget reductions. The use of any contract and hotel college library savings will be determined by the respective colleges.
5. Will the budget cut affect the student wage budget?
Student wages are generally paid from each department’s 4705 accounts, which also fund supplies and other operating costs. There will be a 5% reduction in 4705 accounts. The 4705 allocations will be distributed to the AULs who will work with their respective units to decide how to use these funds most effectively. In addition, student-worker positions supported by endowment income will see funding for those positions decrease by 15% due to the reduction of endowment payout.
6. What is the timeline of the Physical Sciences Library closing?
It will close in December 2009.
7. What will happen to the staff in the Physical Sciences Library?
We discussed the closing of the Physical Sciences Library with the PSL staff in early March and are working with Human Resources to help them find opportunities elsewhere in the university. For example, one staff member in PSL recently transferred to a position in the Annex; some staff members also considered the SRI program. The community served by the Physical Sciences Library still needs library services. We are committed to maintaining a strong presence in the physical sciences and making sure that the community's research, teaching and learning needs are fully met. In addition to enhancing online access to critical resources through electronic subscriptions and book digitization, we will also continue to provide research and instruction services for faculty and students. Janet McCue is leading this transition on behalf of the Library. If you have questions or suggestions, please contact Janet at jam7@cornell.edu.
8. How was the decision made to share the director of human resources with Engineering?
After Susan Markowitz retired, several candidates for the director position were interviewed, but the search was unsuccessful. Then the university instituted the hiring pause, and we decided not to seek a waiver. At that time, Lee Cartmill appointed Lyndsi Prignon and Linda Bryan as acting co-directors. With the dedicated administrative support of Bonnie Bailey, Lyndsi and Linda have provided exemplary leadership and initiative during the past several months and will continue to provide the same high-quality services under the leadership of Julie Delay, the newly appointed library HR director.
Both Lyndsi and Linda have nationally recognized credentials for human resources professionals and years of experience working in CUL. Their support is critical for the success of this new arrangement. At the same time, this arrangement provides an opportunity for more collaboration and sharing of best practices for HR staff in the library and in Engineering and allows our staff to broaden their scope of experience.
This shared services arrangement has the endorsement of Mary Opperman, Vice President for University Human Resources, and it builds upon a successful, similar model already in place for the colleges of Human Ecology and Industrial and Labor Relations. This arrangement is also consistent with the goal of re-examining the way the university provides administrative support services.
9. Will the Library Fellows Program still be in place?
We have suspended the program for the fiscal year 2009/2010, but we hope to resurrect the program when the budgetary situation improves. The Library is committed to enhancing the diversity of our staff. We recognize the program's success in contributing to the increasing numbers of academic librarians from groups that are currently underrepresented in the profession.
10. What is included in the materials budget?
The materials budget funds the purchase and licensing of books, journals and other scholarly resources in all formats. It is also used to pay for postage and some vendor services; for example, access to the OCLC database.
11. Explain the $1.3M from the Library's reserves that we must give to the university. How much money does the Library have in reserves? What percentage of the Library's total reserves are we giving up? Are the reserves used to fund positions, acquisitions or renovations?
The Library's unrestricted reserves represent funds set aside over many years to support special one-time initiatives and provide funding for ongoing operations. The $1.3M is slightly less than 5% of the Library's unrestricted reserve balances, which total nearly $28 million. This cut has not affected funds reserved to pay for the Library's share of the Olin renovation costs.
12. What is the status of Olin renovation?
The renovation of Olin Library remains one of the university's capital construction priorities. We are hopeful that this project will be approved this spring.
Questions as of February 20, 2009, updated on March 27, 2009
13. Why does the Library have to cut its budget?
As we have learned from President Skorton, the university is facing a $200 million shortfall over the next few years. This represents about 10% of its operating budget. Like all university units, the library will reduce its budget to help Cornell meet its financial challenges.
14. How big is Cornell University Library's budget?
The budget of the endowed library units is $40 million. 80% ($32 million) of this comes from the university in the form of its annual allocation or appropriation. Including the contract college libraries and the library at Weill Medical College, the total university library budget is $57 million.
15. How much does CUL need to cut in 2009/10? Will there be more cuts in 2010/11, and if so, how many more?
The fiscal year 2009/10 begins in July 2009. For that year, the endowed library units will need to permanently cut a total of $1.7 million from its endowed general operating budget. This amounts to 5.3% of the $32 million annual appropriation. $569,000 of that will come from the materials budget. In addition to the $1.7 million on-going reduction, the library is being asked to return $1.3 million of its unrestricted accumulated reserve balances. Finally, an additional decrease in our budget will result from a reduction in payouts from the endowment funds. We will know the amount of those reductions after the March Trustees' meeting.
The libraries supported by the contract and medical colleges have been asked to make similar cuts. Reductions at those libraries will be administered by the respective colleges.
The university will make another 5% cut in FY2010/11 and we will need to reduce CUL's budget further, but we do not have specific figures yet. In the next 6 to 12 months, the university will conduct a strategic review of academic programs and administrative support operations to determine strategies for future reductions. The Library will actively participate in the investigation.
16. How has the Library handled the budget reduction process thus far?
The Library approaches this challenging task in an organized and inclusive fashion. The Library Executive Group (Lib Exec) identified a set of principles to guide our planning and communication with staff. During the course of reviewing CUL's budget, Lib Exec also envisioned CUL's future and identified some principles for investment.
From November 2008 to January 2009 the Library actively participated in the university-wide review initiated by President Skorton. Anne worked closely with the deans and senior university administrators. Lib Exec focused on scenario planning for a 5% and 10% reduction for the coming fiscal year.
Internally, the Library launched the Budget Planning Information Site. By the end of January 2009, staff had submitted 84 suggestions through the site, and Lib Exec has read every suggestion. Those suggestions informed the group’s work. Also, the AULs have been gathering information and ideas from their respective unit heads during the entire process.
17. What is the timeframe for planning and implementation?
In early February 2009, the Library received its budget reduction target for FY 2009/10 and has been asked to submit a budget plan by March 2. The 2009/10 detailed budget submission is due to the university by the end of March. Lib Exec will continue to gather information, solicit ideas, and consider alternatives. The AULs will discuss the implications of reductions with their respective units. In the all-staff meeting in April, Anne will review the decisions the Library has made.
18. Will there be layoffs?
Unfortunately, involuntary reduction of hours or layoffs will be unavoidable. The university is still considering incentive programs to encourage voluntary reductions and lessen the need for layoffs. Although we will draw as much savings as possible from non-salary expenditures and use attrition to minimize the impact, we know that we will have to reduce our personnel expenses even further to meet the budget reduction.
On February 27, the university announced its retirement incentives for long-service staff.
19. Do you have criteria when considering cuts?
Yes. First and foremost, Lib Exec has been focusing on savings that will not impact staff positions. One good example in this category is the reduction of food and drinks expenses: On average, the Library spends more than $100,000 a year on food, beverages, and entertainment expenditures, and we immediately examined those purchases and amended the policy.
Next, we reviewed all vacant positions and considered the impact on library services of not filling them. As a last resort, we are looking at areas where layoffs would be the only option to reduce costs. When doing so, we are focusing on the core services to users. In other words, we assess which services we must offer to users and which we can no longer afford to provide, even if they are very useful.
As participants in the university-wide 45-day review, we used a set of questions from the university to guide our work. These questions, listed below, proved to be very useful, and we have continued to use them throughout the library budget planning process.
- What change will occur as a result?
- What are the promising aspects in terms of efficiency and effectiveness?
- What are the major concerns or downside risks?
- What is the probability of success, and what are the critical actions necessary to make it a success?
- What is the range of cost savings?
20. Are all budgets equally affected? What about materials and operating expenses?
We are facing a time of major change. The Library must be prepared to operate our programs and services with a reduced budget in the next few years. The materials budget will be affected in the same proportion as the rest of the budget, and selectors have been contributing creative ideas about ways to meet this challenge.
In terms of the general operating budget, all library units will be affected, although we are not planning equal across the board reductions. In order to ensure that we keep pace with the needs of learners, teachers, and researchers, we will need to make cuts in some areas and continue to support or invest in new growth in others.
21. If layoffs occur, what procedures will you follow?
For non-academic staff, the Library will follow Cornell University Policy 6.12: Separations, Voluntary and Involuntary, Including Layoff (Excluding Academic and Bargaining Unit Staff).
For academic staff we will follow CUL Procedure #13: Appointment and Promotion of Librarians and the University’s academic policies outlined in Cornell University Faculty Handbook.
22. Will the university offer incentive programs for retirement?
On February 27, the university announced its retirement incentives for long-service staff.
23. When will staff members know if their jobs are impacted?
We have been notifying impacted staff and will conclude this process in March.
24. Will library employees receive pay raises in 2009/2010?
No. The university has suspended its Salary Improvement Program (SIP) for faculty and non-bargaining unit staff in Ithaca in FY 2009/10. In July, staff whose annual base pay is $40,000 or less will receive a one-time bonus of $750, pro-rated for eligible part-time staff. Vice President for Human Resources Mary Opperman, will establish a hardship fund to assist staff with special needs during this difficult time.
25. How will the Library keep me informed?
We are using a variety of ways to communicate. The CUL Budget Planning Information Site is the best source for current information. Anne is using her Take One messages to highlight new information. Anne is also planning all-staff meetings in April to discuss the reduced library budget and associated decisions. In addition, Shop Talks with Anne or one of the AULs are a good place to get answers to specific questions.
If you have a question or hear a rumor that concerns you, you can always ask your supervisor. Supervisors know this is an uncertain and difficult time, so please do not hesitate to talk with them. If supervisors don’t know the answers, they will ask HR or an AUL, and as decisions are being made, unit supervisors and respective AULs will keep staff in the loop.
26. How can I get involved in the process?
You can contribute recommendations and solutions by sharing them with your supervisor, discussing them in team meetings, or sending them to the suggestion box.
27. Whom should I go to for consultation?
Lyndsi Prignon and Linda Bryan will provide support from Library Human Resources. You can also share your concerns directly with your supervisor and the AULs.
All staff members can use university resources such as the Employee Assistance Program, which helps with all types of work-life issues, including family finances and Organizational Development Services, Career Development Services. Please feel free to contact Lyndsi (lra8@cornell.edu) or Linda (lgb4@cornell.edu), and they will provide leads to the services that fit your needs best.
28. I have more questions. How can I get them answered?
Please send questions to Lib Exec through this mailbox. Although we may not have enough information to answer your questions, we will do our best to respond.