1. 1 BUDGETS & PEOPLE NC State University Faculty Senate Feb 10, 2009

2. 2 Where the State of NC GETS its Money ($21.3B in FY 08-09)

3. 3 Where the State of NC SPENDS its Money ($21.3B in FY 08-09)

4. 4 Where NC State University GETS its Money ($1.14B in FY 08-09)

5. 5 Where NC State U SPENDS its Money ($1.14B in FY 08-09)

6. 6 NC State U Personnel (Approx 8,300 Headcount)

7. 7

8. 8

9. 9 Budget Cuts Do Impact Positions SPA: “Reduction In Force (RIF)” SPA: “Reduction In Force (RIF)” EPA Non-Faculty: “Discontinuation of Employment” EPA Non-Faculty: “Discontinuation of Employment”

10. 10 SPA RIFs – Past 10 Years

11. 11 SPA: RIFs RIF Policies are State of NCRIF Policies are State of NC (not UNC System or NC State U) (not UNC System or NC State U) Temps & Probationary employeesTemps & Probationary employees must go first must go first

12. 12 Who gets RIF’d?  Based on “business need” & relative contribution (employees’ skills, knowledge, productivity / “competencies”) Length of service / seniority is considered Length of service / seniority is considered

13. 13 SPA RIF Plan Departments submit written RIF Plan to HR for review & endorsement Departments submit written RIF Plan to HR for review & endorsement RIF compliance review RIF compliance review Adverse impact Adverse impact Severance calculations Severance calculations OSP / OSBM approval OSP / OSBM approval At least 30 days’ notice At least 30 days’ notice Appeal rights Appeal rights Position must be abolished Position must be abolished

14. 14 SPA Severance Pay Payment calculation is based on: Payment calculation is based on: Total State Service + Total State Service + Age (over 39) Age (over 39) + Accrued Leave + Accrued Leave Up to 6 weeks annual leave + Up to 6 weeks annual leave + Up to 5 weeks bonus leave + Up to 5 weeks bonus leave + Unused Comp time Unused Comp time

15. 15 Re-Employment SPA employees with past 24 months of State service get priority State reemployment SPA employees with past 24 months of State service get priority State reemployment Human Resources provides job search assistance (SPA, also EPA) Human Resources provides job search assistance (SPA, also EPA)

16. 16 EPA Non-Faculty (Discontinuation of Employment) “At Will” EPA: “At Will” EPA: Discontinuation is at discretion of Chancellor (delegated to Provost for most EPA Non-Faculty)

17. 17 EPA Non-Faculty (Discontinuation of Employment)

18. 18 Notice: EPA Non-Faculty, At-Will During 1st year of employment: During 1st year of employment: At least 30 days (notice / severance) At least 30 days (notice / severance) During years 2 & 3: During years 2 & 3: At least 60 days (notice / severance) At least 60 days (notice / severance) During years 4 or more: During years 4 or more: At least 90 days (notice / severance) At least 90 days (notice / severance)

19. 19 NOTICE: EPA Non-Faculty Contingent (“Soft-Funded”) Appointments Offers of employment are contingent on continued availability of funds Offers of employment are contingent on continued availability of funds Notice is not required -- but encouraged Notice is not required -- but encouraged

20. 20 NOTICE: EPA Non-Faculty, Fixed Term May be separated ONLY at conclusion of contract period (except financial exigency) May be separated ONLY at conclusion of contract period (except financial exigency) A contract of 1 year or less: Advance written notice that “No Subsequent Appointment will be Forthcoming” (NSAF) permitted, but not required A contract of 1 year or less: Advance written notice that “No Subsequent Appointment will be Forthcoming” (NSAF) permitted, but not required A contract of more than 1 and less than 4 years: A contract of more than 1 and less than 4 years: 60 day written notice that NSAF 60 day written notice that NSAF A contract of 4 years or more: A contract of 4 years or more: 90 days written notice that NSAF

21. 21 Financial Exigency Financial Exigency is “a significant decline in financial resources of the University that compels a reduction in the institution’s budget.” Financial Exigency is “a significant decline in financial resources of the University that compels a reduction in the institution’s budget.” Chancellor decision; but requires advance notice to and approval by the President and Board of Governors Chancellor decision; but requires advance notice to and approval by the President and Board of Governors

22. 22 SPA + EPA Benefits Leave Payout Leave Payout Unused Annual / Bonus / Comp Time (SPA) Unused Annual / Bonus / Comp Time (SPA) Sick time not paid out, but reinstated if rehired Sick time not paid out, but reinstated if rehired Health Insurance Health Insurance On State Health Plan at time of separation On State Health Plan at time of separation If past 12 months were State service If past 12 months were State service Other Benefits: Can elect COBRA continuation Other Benefits: Can elect COBRA continuation Unemployment Insurance: Eligible to receive Unemployment Insurance: Eligible to receive

23. 23 Human Resources SPA: Kathy Lambert 515-4277 SPA: Kathy Lambert 515-4277 EPA: Laurie Textor 513-0765 EPA: Laurie Textor 513-0765 or or Marc Okner 515-4300 Marc Okner 515-4300