Definition of Financial Exigency
Financial exigency is defined as an urgent demand for immediate action by the institution to relieve a financial emergency. Financial exigency may result from various actions or events, such as a decline in enrollment or a reduction in governmental or private funds for scholarships, grants, etc. The term, “financial exigency” is not to be construed that the university is likely to default on any obligations or that any creditors should be notified of the action.
Mandatory Notification
Financial information supporting a declaration of financial exigency is to be presented to the University Assembly by an officer of the university. The Board must officially declare that a financial exigency exists. A declaration of financial exigency applies on an annual basis. If the need arises to extend the declaration to a succeeding year, the board will vote accordingly on the basis of new evidence.
Emergency Measures - Administration and Board
While financial exigency exists, the university administration and Board are enabled to implement emergency measures to reduce institutional costs. Recommendations from study groups, committees, and administrative personnel are to be reviewed by the president and members of Cabinet. Final approval of cost reduction measures rests with the Board.
Termination of Programs and Personnel Due to Financial Exigency
The policy for termination of personnel and programs due to financial exigency is to be implemented only after the Board has officially declared a state of financial exigency. (For termination of faculty and academic programs, see “Financial Exigency” in the Faculty Employees Section 5000 of the Employee Handbook, Policy 5090.)