Dear Colleagues:
I hope that you have been able to review President DeGioia’s message yesterday, which addresses serious financial concerns related to the COVID-19 pandemic. This memorandum elaborates on that message.
These have been days of deep challenge to all of us, forcing us to complete the spring semester under unprecedented disruption. I thank you for your understanding and the commitment to Georgetown that you displayed over the past weeks.
As President DeGioia noted, the unplanned expenditures to protect our students, faculty and staff will be followed by more financial losses this summer. Hence, to protect the welfare of the community, we are attempting to build “the strongest possible framework for the Fall, and to continue to protect as many jobs as possible.”
We have already achieved more than $2 million dollars in salary reductions from more than 50 senior leaders, imposed a hiring and salary freeze for this year and limited all non-essential spending. The university is now moving forward with additional actions:
- There will be no merit increase for the next fiscal year (FY21) for faculty, staff and AAPs.
- The university will temporarily halt its contributions to all 403(b) retirement accounts—although this decision will be revisited during the course of the year based on updated financial data.
- The university has cancelled non-essential capital expenditures.
These are painful decisions for all of us.
President DeGioia also outlined two voluntary initiatives that people can participate in that will help the university financially at this difficult time: a voluntary salary reduction and a voluntary furlough. From these efforts, we are attempting to save $10 million from the $120 million salary costs we would otherwise incur over the summer months. Every dollar we save will be used to support our community, including to extend the jobs of those in the Georgetown community as long as possible in the face of future financial losses.
Voluntary Salary Reduction
We will offer a Voluntary Temporary Salary Reduction Program for all faculty, staff and AAPs who wish to participate.
This program will:
- allow any employee to designate a reduction amount or percentage in their annual salary;
- maintain all benefits for participating employees;
- run through the date of the employee’s choosing, anytime until June 30, 2021;
- be done in a confidential manner so that managers, supervisors and academic deans are not aware of employees’ participation; and
- be revocable at any time in the future by the employee.
Interested staff and AAPs should apply using the appropriate form which is available on the Human Resources website.
Voluntary Furlough Program
Georgetown is implementing a Voluntary Furlough Program for any staff member who is unable to perform some or all of their job remotely. The staff program includes both positions for which there is an inability to work and positions for which there has been a reduction in the amount of available work. A furlough is a temporary unpaid leave, during which affected individuals remain Georgetown employees.
All staff and AAP employees, including both hourly and exempt employees, are eligible to participate in the Voluntary Furlough Program.
Upon approval of senior leadership, employees would take an unpaid leave of absence while retaining benefits. Details of the voluntary furlough are below:
- The furlough will go into effect Monday, May 25, 2020, and conclude on Sunday, July 26, 2020.
- Furloughed employees will return to work on Monday, July 27, 2020.
- All furloughed employees will retain their current medical, dental and vision insurance. Georgetown will pay both the employer and employee portions of these insurance premiums during the furlough period.
- Tuition Assistance Program benefits and paid leave accruals, if applicable, will continue while employees are temporarily furloughed.
- Affected employees may file for state unemployment compensation benefits and federal support immediately.
- Upon an employee’s return to work, the university will consider efforts to mitigate economic impacts this furlough may have caused.
- Additional information, including FAQs, can be found on the Human Resources website.
Interested staff and AAPs should apply using this form by 5 p.m., Monday, May 18. Applications will be reviewed by HR and managers, and applicants will be notified in writing as to whether their furlough application has been approved or denied by Friday, May 22.
Informational webinars will be hosted via Zoom on Thursday, May 14 and Friday, May 15, 2020 at 10 a.m and 2 p.m. Representatives from the Department of Human Resources and Office of Faculty and Staff Benefits will discuss the Voluntary Furlough Program and upcoming changes to the university contribution toward the 403(b) retirement plan, and participants will have opportunities to ask questions.General questions can also be directed to the HR, Benefits and Payroll help line at 202-687-2500.
We recognize that people have different work obligations and financial needs. Not everyone will be able to participate in these two programs. For more information about how you can help, please refer to the “How to Help” section of our COVID-19 website, which outlines ways the community can lend support.
This is a critical time for the community to come together. Our actions over the coming months will determine Georgetown’s status for some years to come. Your help will make a great difference.
I want to express my gratitude to all of you for your willingness to quickly adjust to the demands we face. We’ve had to move rapidly to a new way of life and work, all the while striving to deliver the critical parts of our academic mission of teaching and scholarship.
We are humbled by your dedication to the university, and your many outstanding contributions. Thank you.
Sincerely,
Robert M. Groves
Provost