PHILADELPHIA (WPVI) -- Temple University will be instituting temporary pay cuts to its leadership members due to the continuing impact of the coronavirus, according to a letter obtained by Action News.
The letter, sent to faculty from Ken Kaiser, Temple's Vice President, Chief Financial Officer and Treasurer, said challenges as a result of the virus have put a "major strain on university finances."
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According to the letter, the salaries of officers, deans and advisors to President Richard Englert will be reduced by 10% beginning in May. Compensation of non-bargaining unit employees earning more than $100,000 will be reduced by 5%.
Kaiser said every division at the university has been asked to make reductions and to build a plan to reduce the budget by 5% for the upcoming fiscal year.
The university, he said, has been impacted in the form of loss revenue from conferences and events, as well as refunds to students for unused housing, meal plans, and parking charges.
Kaiser does expect some relief from the CARES Act, but most of the funds will be passed to the students.
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Temple has already implemented a hiring freeze and a reduction of ongoing expenses. Kaiser said these actions may not be the only ones the university needs to take in order to continue to serve its students.
"As the economic fallout and impact on the university's budget from the pandemic comes more clearly into focus, I will be recommending additional actions. Some of these may be painful, but our first obligation must be to our students and to preserving the university's ability to provide access to the highest quality education," Kaiser said.
Temple University instituting pay cuts as impact of COVID-19 grows