Update: Voluntary Transition Incentive Program
Dear Members of the Loyola Community,
As many of you know, in May Loyola University Chicago extended a Voluntary Transition Incentive Program (VTIP) to staff at all campuses. The program was offered to staff who are 65 years of age or older and have at least 10 years of service at Loyola. The program has now closed and I write to report on the outcome.A total of 70 employees were eligible for the program, and 45 have accepted the VTIP offer. For most of these long-term employees, their last day at Loyola will be on July 20, 2018. In rare instances where the press of university business required a longer stay, employees will remain through September 28, 2018. These employees represent nearly 1,038 years of combined service to Loyola. We are all indebted to them for their contributions and commitment to our university, and we wish them the very best for a happy retirement—or in some cases, their move to another career or position.
The VTIP program is one of several initiatives designed to reduce our expense base to achieve greater alignment with our revenues and identify resources for new investments in programs and initiatives that will serve our students in the future. The goal of the VTIP program is to permanently remove $2.5MM in salary/benefit expense from our base budget, or about 50 percent of the total salary and benefits represented by the 45 employees who accepted the VTIP offer. Some of these positions, by reason of their critical role at Loyola, will be replaced, though most will not. Senior leaders and managers have identified ways to re-assign work and salary dollars and to restructure their departments in light of these upcoming departures. The Strategic Financial Planning Team (formerly Budget Review Team) will carefully consider position re-fill requests and inform the relevant vice president of its decision no later than July 15.
As we prepare the fiscal year 2020 budget for approval by the Board of Trustees in December, I am confident Loyola’s financial projections will remain strong. The VTIP was a successful part of our budget planning initiatives, though there is more work to do. Along with our previous human capital project management project and initiatives from the Strategic Financial Planning Work Groups, we will continue to strengthen the resources that support our mission. However, as we work to keep future tuition increases as low as possible, continue to provide competitive annual salary and benefits increases for faculty and staff, and maintain our core commitment to high academic quality and service, we must continue to find new and creative ways to identify sources of revenue and reduce expenses.
This fall I will be on all campuses updating the Loyola community on our progress, financial projections and challenges as we begin to frame our major assumptions for the next three fiscal years. As usual, I am confident that the Loyola community will continue to engage with us as we work to insure that Loyola remains financially healthy.
Thank you for all you do for Loyola.
Senior Vice President
Chief Financial Officer
Chief Business Officer