LOUISVILLE, Ky. — The University of Louisville is implementing pay cuts and furloughs to combat what leadership said could be a $40 million negative impact between now and the end of the fiscal year.
In a letter to staff, President Neeli Bendapudi said the school has lost funds due the March Madness cancellation, the halt of elective clinical procedures and lower tuition rates and refunds due to COVID-19.
UofL has not only instituted a hiring freeze, but will also implement pay cuts and part- and full-time employee furloughs. Effective April 1 through at least June 30, there will be a:
- 10% pay reduction for any university employee with total compensation $300,000 and greater
- 5% pay reduction for any university employee with total compensation between $200,000 - $299,999
- 2% pay reduction for any university employee with total compensation between $100,000 - $199,999
Bendapudi, Provost Boehm and all of Louisville's senior leaders will also take a reduction in pay through June 30.
The leadership team also said it will be evaluating and likely implementing temporary changes to retirement benefits. This does not include health insurance or life insurance.
"We know that our situation is serious and may cause some anxiety. If you need support during this difficult time, we have worked to make resources available to our employees," the letter said. "Please know that we will do everything in our power to lessen the impact on our students, faculty and staff."
University of Louisville Athletics will also be instituting a series of pay reductions for head coaches and senior staff that will carry through June 30, 2021.