(a) first, the University must fully utilize all means consistent with its continued existence as an
institution of high academic quality to reduce expenses or to increase income which do not involve
the termination of faculty positions or the impairment of faculty rights.
(b) second, the University may consider alternatives which involve only the temporary reduction or
postponement of faculty compensation or the reduction of fringe benefits.
(c) only thereafter may the University suspend or terminate faculty positions in accordance with the
section.
11.3. First Stage: Alternative Approaches. If there has been a serious reduction in the University's
income, the president will report the matter to the Senate Consultative Committee. The president will
identify the magnitude of the shortfall, the measures which might be taken to alleviate it (which must not
involve impairment of faculty rights), and alternative measures which have been rejected. The president
will give the committee full access to all available information and will respond specifically to additional
proposals suggested by the committee. At this stage, the University will consider reductions in other
expenses. It will also consider increases in tuition, sales of assets, and borrowing. These steps will be
implemented by the president or the Board of Regents as is appropriate.
11.4. Second Stage: Reduction Or Postponement Of Compensation. If the University has implemented
all of the measures which are required to be considered in the first stage, which are consistent with its
continued operation as an institution of high academic quality, and they are inadequate to meet the
shortfall, the president may, after consultation with the Faculty Consultative Committee, propose the
temporary reduction or postponement of faculty compensation for a predetermined period not to exceed
one year, according to a mathematic formula or similar device. The Faculty Consultative Committee will
report on the adequacy of the steps taken in the first stage and make its recommendations on the proposal.
If the Faculty Senate approves the proposed action (or any modification of it) by an absolute majority of its
membership or by a two-thirds vote of the members present and voting (a quorum being present), the
Board of Regents may take that action (or any less stringent action) and, to that extent, modify the terms of
the appointments of all faculty members. The Board of Regents may rescind the action at any time
thereafter. Such action may be repeated by the same procedures.
11.5. Third Stage: Fiscal Emergency. If there has been a reduction of the University's income which is so
drastic as to threaten its survival, and this threat cannot be alleviated by the measures specified above, the
Board of Regents may declare a fiscal emergency. During such an emergency, the Board of Regents may
terminate or suspend faculty appointments as provided in this section.
11.51. Preliminary Procedures. Before recommending to the Board of Regents that it declare a fiscal
emergency, the president must meet with the Senate Consultative Committee to examine alternatives to
and consequences of such a declaration. The president must provide the committee access to all available
information. The president must provide a written report identifying the dollar amount to be saved by
reducing faculty positions. This report must also identify the dollar amount proposed to be saved by any
other measures to be taken, including the level of any concurrent reductions in non-faculty staff during the
emergency. The Faculty Consultative Committee will prepare a written report on the president's proposal,
to which the Senate Consultative Committee may add additional comments. The Faculty Senate will first
consider and act on the proposal and reports. Thereafter, the University Senate may consider them. The
president must attend both senate meetings to explain the proposal and to answer questions.
After receiving the president's recommendation and the resolutions of the senates, the Board of Regents
may declare a state of fiscal emergency. Before action contrary to the recommendation of the University
Senate is subsequently taken, the president must report in writing and in person the reasons for this action
to the Senate Consultative Committee. The Board of Regents' resolution states the maximum amount to be
realized from termination or suspension of faculty appointments.