4.13 Financial Exigency Policy
The President will regularly review the financial status of the College to determine if conditions exist that are sufficient to warrant a declaration of financial exigency.
4.13.1 Financial exigency exists when an imminent financial crisis threatens the survival of the institution as a whole and cannot be alleviated by less than drastic means, such as the realignment of College expenditures, immediate reduction in hourly and contract employees, and/or emergency use of restricted reserves from the fund balance of the College.
4.13.2 Any sudden, severe, and unexpected change in financial conditions will be reported within five days of the discovery of such conditions by the President to the Board of Trustees, faculty, and staff.
4.13.3 Following the determination by the Board of Trustees that a financial exigency does exist, the President of the College, as Chief Executive Officer, will develop a retrenchment plan for approval and enactment by the Board of Trustees.
4.13.4 The plan for retrenchment will be developed in accordance with the following guidelines:
(1) The total College operation, including all departments and offices, will be considered in making recommendations for retrenchment.
(2) In all cases of termination of faculty on continuous contracts because of financial exigency, the positions of the faculty concerned will not be filled within a two-year period by replacement nor will temporary positions be created so as to effect replacement of those faculty positions unless the released faculty have been offered reinstatement and a reasonable time in which to accept or decline the offer.
(Adopted 6-4-1979; Implemented 2-9-1981; Revised 8-28-2003)