An Update Regarding the Financial Plan
Dear Members of the Georgetown Community:
Over the last several weeks, a number of conversations have taken place across the University regarding the implementation of our 5-year financial plan. I write today with an update on the changes we have made to this implementation, which we believe reflect both our shared values and shared goals as members of the Georgetown community.
Since the financial crisis began in 2008, we have taken a conservative approach to allocating resources ensuring that we focus our attention on critical competitive issues such as access and affordability, faculty and staff salary plans, vital academic capital projects, and investments in innovative programs.
As we have discussed, we are facing a challenging environment in higher education, which impacts the financial decisions our community must make. This difficult environment is complicated by the fact that sequestration is now very much a reality that poses immediate consequences for our national and regional economy and puts at risk millions of dollars in research funding.
With all of this in mind, in developing our financial plan, we have been working to identify ways to eliminate our operating deficit, ensure Georgetown’s competitiveness, and maintain our commitment to access and affordability.
Many of you expressed concern with some aspects of the plan proposed last month, and we are grateful for your feedback and input throughout this process.
As a result of these concerns, I asked our Executive Vice Presidents on each campus and our Chief Operating Officer to present alternatives to the implementation of our financial plan that reflect our shared values; represent our appreciation for the valuable contributions that faculty, staff, and administrative professionals make to Georgetown; and that ease the burden as much as possible on our employees while still achieving our financial goals.
I am deeply grateful to our EVPs and COO for working with so many of you who attended town hall meetings, engaged in discussions, and shared your ideas, feedback and input.
The resulting recommendations, which I have accepted, reflect the engagement of our community and include the following key elements:
- The restoration of $2 million – a 0.75% increase – to the staff merit increase pool;
- A six-month delay in the scheduled faculty salary plan increases;
- The maintenance of the salary freeze for University leaders including myself, Executive Vice Presidents, Senior Vice Presidents, and Deans;
- The addition of three paid-vacation days between Christmas and New Years to the 2014 calendar; and
- Zero increase to parking and daycare fees at all of our campuses.
You can read more about the recommendations here.
Thank you again for contributing your feedback throughout this process. As we work to meet the challenges of our current environment, we will continue to engage with you in fora similar to those of the past month. Through our work together, our plan will strengthen our University and position us to take advantage of new opportunities well into the future.
I am deeply grateful to each of you for your contributions and hard work, all of which help us achieve our mission every day.
You have my very best wishes.
John J. DeGioia