Ohio Administrative Code › Title 3335 - Ohio State University › Chapter 3335-5 - Faculty Members In General › Section 3335-5-02.1 - Financial exigency

Current through all regulations passed and filed through July 1, 2024
(A)
								 Definition.
			 "Financial exigency" is an imminent financial crisis which seriously
			 jeopardizes the ability of the university as a whole to survive as an
			 institution of excellence in teaching, research, and public service.
			 Projections of enrollment, of instructional subsidies, and of other sources of
			 revenues must demonstrate that the shortage of funds will be both severe and
			 persistent and cannot be alleviated by temporary or voluntary measures, as
			 specified in paragraph (B)(2) of this rule.
(B)
								 Mechanism of
			 determination.
(1)
									 In the event of an imminent financial crisis, as
			 announced and defined by the president to the university senate, the president
			 will solicit the recommendations of the fiscal committee, as provided for under
			 rule 3335-5-48.11 of the Administrative Code, to ascertain whether a
			 determination of financial exigency is warranted.
(2)
									 The fiscal
			 committee, acting in accordance with rule 3335-5-48.11 of the Administrative
			 Code, shall have the responsibility to:
(a)
										 Review the
			 budgetary documentation of the crisis, having full access to that
			 documentation.
(b)
										 Assess whether the crisis would reduce the quality of
			 the academic programs of the university as a whole to an unacceptable degree
			 and would render the university unable to meet its obligations to the
			 public.
(c)
										 Ascertain the extent to which consolidation or
			 elimination of some administrative offices and services or reductions in
			 operating and equipment budgets would alleviate the crisis.
(d)
										 Ascertain the
			 extent to which voluntary retrenchment mechanisms, including early retirement
			 or resignation or other economic incentive plans, would alleviate the
			 crisis.
(e)
										 Make a recommendation based upon the above
			 considerations of the need for a determination of financial
			 exigency.
(f)
										 Report the results of its deliberations to the
			 university senate.
(g)
										 Monitor the financial condition of the university
			 during a state of financial exigency.
(3)
									 Upon receipt of
			 the report of the fiscal committee, the university senate shall make its
			 recommendations as to whether there should be a determination of financial
			 exigency.
(4)
									 Upon receipt of the recommendations of the fiscal
			 committee and the university senate, the president will notify the university
			 community and the university senate of the administration's analysis and
			 proposed response to the financial situation, allowing an opportunity to
			 respond to questions and to solicit advice and opinions.
(5)
									 In the event
			 that the recommendations of the university senate and the president differ
			 substantially on recommending determination of financial exigency to the board
			 of trustees, recommendations of both shall be forwarded to the board, which has
			 final responsibility for the determination of financial exigency. No further
			 establishment of financial exigency will be required for one year at which time
			 the full procedures must be invoked again.