Temporary FY21 Salary Reduction Plan

In his May 26 message to the OSU community, President Ray noted several actions the University will take to close a significant anticipated gap between Corvallis and Cascades Education and General (E&G) revenues and projected expenses. Among those actions is a temporary reduction in the salaries of unclassified employees (academic and professional faculty) that would save about $12M in salary and associated OPE costs. The reduction would not begin before August 1, 2020. 

The temporary pay reduction program will be applied beginning Aug. 1 at the earliest, and will be implemented if updated projections indicate that E&G revenues are falling short of expenses by at least $35 million for Corvallis E&G funds. While additional details are available here, the following is the plan in outline:

  • Unclassified employees (academic and professional faculty) with a base salary rate of at least $50,000 annually would receive a pay reduction.
  • Overall reductions range from 1.7% for employees with base salaries between $50,000 and $70,000, to 9.2% for employees with base salaries between $260,000 and $280,000, to a maximum reduction of 13.8% for OSU’s highest-compensated senior executives, including the university’s president. 
  • Athletic coaches are employed under multi-year contract arrangements. Like OSU’s senior executives, all head coaches and some assistant coaches have committed to making voluntary leadership philanthropic gifts to the OSU Foundation, and compensation reductions are being negotiated between the Director of Athletics and individual coaches.
  • The program will cease if revised projections—produced several times over the course of the fiscal year—indicate the FY21 Corvallis E&G shortfall will be less than $35 million. Factors that could reduce the shortfall include higher than expected enrollment, higher than expected state support, federal emergency funding to higher education and OSU, or higher than expected savings from cost reduction efforts.
  • For OSU’s senior executives—including the president, provost, vice presidents, general counsel, deans, vice provosts and others—the reduction program will be implemented beginning July 1 and is anticipated to be in effect for a minimum of six months.

In total, the pay reduction will save the university approximately $12 million. This will help OSU support more faculty, staff and graduate assistant positions than it could otherwise.

Latest updates

Temporary FY21 Salary Reduction Plan (pdf) - June 23, 2020

FY21 Budget Planning Update to Professional Faculty - June 9, 2020


Please send your comments and questions to Trina.Young@oregonstate.edu.


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