HIRING FREEZE Q&A

July 2, 2007

Why is there a hiring freeze? The hiring freeze is being implemented as an initial response to a projected deficit that could range from $20 million to $30 million caused by a significant decline in revenue and rising expenses. The deficit is a result of a change in the way the Legislature funds enrollment and no tuition increase this year for state universities. In addition to that, the governor instructed UF and other state agencies to anticipate a minimum reduction of 4 percent in recurring General Revenue Fund appropriations during Fiscal Years 2007-08 and 2008-09.

I thought the governor just approved a tuition increase for UF, FSU and USF, so why do we still have budget problems? Gov. Crist did sign the tuition differential bill into law, but it will not be implemented until next year. That means UF and the other schools still must get through a year without a tuition increase to cover increasing costs. On Friday, the Governor’s Office also sent communication to all state agency heads instructing each agency to submit plans for the potential of reductions for Fiscal Year 2007-08 appropriations totaling at least 4 percent of their recurring General Revenue. Although the approval for the differential tuition program is a positive step, the university will continue to face financial pressures.

Are there any exceptions to the hiring freeze? Exceptions to the hiring freeze will be considered for positions funded from nonstate sources, such as clinical revenue and contracts and grants. UF Human Resource Services will provide additional information during a forum to be held the week of July 2.

What about hirings that are in the process of being carried out? Can those continue? These situations will be handled on a case-by-case basis, but in most instances the hiring will be put on hold.

Will there be layoffs? No layoffs are planned at this point.

The College of Liberal Arts and Sciences is already facing a financial crunch due to past overspending. Won’t this hiring freeze only worsen that situation? The college has already been looking at ways to reduce its expenses while maintaining its ability to serve a large student population. Every college and unit on campus will be asked to implement the freeze.

Why can’t the university use money from the Athletic Association to apply toward the deficit? The University Athletic Association does not receive any state funding for its operations. In fact, UAA does contribute significantly to the university — $37 million since 1990. Unlike 90 percent of the athletic associations in the country, UAA is a revenue-generating operation. But while UAA has a limited amount of discretion in how it spends its funds, the vast majority of the money it receives is designated by donors for specific purposes related to the athletic program. The funds cannot be spent elsewhere.