CLEVELAND — Cleveland State University's Board of Trustees is considering a plan to offer "separation incentive packages" to faculty and staff to help reverse the university's financial problems.
In a story first reported by Amy Morona of Signal Cleveland, the move by Cleveland State to offer faculty and staff voluntary buyout packages would help close a projected $40 million budget gap.
Morona reports that at a CSU faculty senate meeting Wednesday, President Laura Bloomberg said the budget hole represents 14% of Cleveland State’s operating budget, so she is asking the university’s board of trustees to tap into its reserves for a one-time payment of $9 million to pay for the buyouts. Per Morona, Bloomberg said she has “every expectation” trustees will approve it.
The CSU Board of Trustees have scheduled a special meeting to consider the voluntary separation incentive on Tuesday, April 9.
So what would the buyout look like?
In data shared with 3News, Cleveland State University officials say 332 faculty members would be eligible for buyouts. That number is roughly 63% of the 527 full-time educators at CSU. Also, 391 full-time staffers would be eligible for the "separation incentive package," which is 44% of the 891 total members.
Morona says applications for the buyout could open later this month. A town hall is scheduled for early May, and then employees will indicate if they’re interested. Decisions could come as early as June. Payments would be a one-time lump sum amount equal to the employee’s annual salary.
3News reached out to Cleveland State University for a statement on this development. Their response can be read below:
"Colleges and universities in Ohio and across the nation are facing unprecedented enrollment and financial challenges. Cleveland State University has prioritized addressing these issues to ensure the education of its current and future students. At the same time, the University is continuing the process of transforming its curriculum as Cleveland’s public, research-focused institution that creates excellent learning opportunities for all students.
"At the April 3 meeting of the CSU Faculty Senate, President Laura Bloomberg provided an update on the University’s plan to build organizational resilience and financial stability – an effort that began in the summer of 2023. Throughout the process, the University’s administration has clearly communicated that this plan would include recommendations for budget cutting, cost containment and strategic investments – all grounded in CSU’s ongoing commitment to its students and to Northeast Ohio.
"The broad recommendations discussed during the April 3 meeting are continuing to be refined, but they include five areas where the University will invest time, energy and resources to strengthen the CSU experience: centralizing advising, transforming employer and community partnerships to best connect our students with post-graduate opportunities, future-proofing the curriculum, deepening transfer program partnerships and modernizing the CSU’s technology infrastructure. The presentation also outlined a series of cost-saving measures, including a voluntary separation incentive package for which a portion of faculty (332) and full-time staff (391) would be eligible.
"University leaders will continue refining these approaches to present a final University transformation plan with established near-term milestones. CSU is confident that it will emerge from this period of rightsizing with a new strategic vision as Cleveland’s regional, public, urban, research institution centered on the student experience. CSU also intends to leverage technology and recognized industry tools to strengthen its reputation and focus on the future economic, cultural and workforce needs of the region."