Syracuse University says COVID-19 crisis has cost it $35 million, so it will cut pay, freeze hiring

SYRACUSE, N.Y. — With a more than $35 million budget shortfall from the coronavirus pandemic, Syracuse University plans salary reductions for senior leaders, a faculty and staff salary freeze, and a hiring freeze for non-essential staff positions.

That’s according to a letter to the Syracuse community from senior leaders, including Syracuse University Chancellor Kent Syverud. The university on Monday posted the letter, titled “Financial Impact of COVID-19,” on its news website.

In the time since Syracuse’s response to COVID-19 began, the university has had “more than $35 million in unplanned expenses and unrealized revenue.”

“This global crisis has put unprecedented financial stress on almost all people and organizations, including here at Syracuse. In recent years, we have been preparing for the impact of unforeseen events such as this. As a result, we find ourselves in a stronger position than many of our peers. Still, we must take into account the shifting economic realities facing our university,” the letter read.

Syverud wrote the letter along with John Liu, interim vice chancellor and provost, and Amir Rahnamay-Azar, senior VP and CFO.

Senior leadership compensation reductions

Syverud, Liu, and Rahnamay-Azar will each take a 10 percent salary reduction for fiscal year 2021, along with members of the Chancellor’s Council (including vice chancellors, senior VPs, and deans); John Wildhack, athletics director; football coach Dino Babers, men’s basketball coach Jim Boeheim, and men’s lacrosse coach John Desko. The funds generated through this measure will be “specifically reallocated” to support students, faculty, and staff who are “particularly impacted by the current situation.”

Faculty and staff salary freeze

In addition, Syracuse will implement a faculty and staff salary freeze, meaning “no merit increases for faculty and staff for fiscal year 2021.” Employees in unions will receive pay as directed by contracts.

Temporary hiring freeze for non-essential staff positions

The university is also instituting a temporary hiring freeze for non-essential staff positions “until further notice.” Replacement and new staff positions “deemed mission-critical” will be reviewed and approved consistent with existing hiring practices.

Cost reductions

In partnership with leadership, deans, directors, and department heads, Syracuse University is implementing 5 percent cost reduction across all administrative, academic, and auxiliary units.

Capital projects

All new capital projects are currently on hold, with the exception of those already underway such as the improvements to the Carrier Dome, along with those “deemed mission-critical” to the school’s academic priorities, or projects that include regulatory, compliance, and/or safety components.