Bona Fide Financial Crisis, Financial Exigency

Bona Fide Financial Crisis, Financial Exigency

Abstract:
This section of the Faculty Handbook describes the procedures for terminating faculty for bona fide financial exigency and bona fide financial crisis.
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None Assigned
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Original Source:
Faculty Handbook
Audience:
Faculty

BONA FIDE FINANCIAL CRISIS, FINANCIAL EXIGENCY

2.18.3 Bona Fide Financial Crisis and Bona Fide Financial Exigency
2.18.3.1 Acquisition of Faculty Advice by the Provost
2.18.3.2 Provost’s Actions
2.18.3.3 President’s Actions


2.18.3 Bona Fide Financial Crisis and Bona Fide Financial Exigency

Should a dean or library director, in consultation with the Provost, determine that a bona fide financial crisis exists within a school or library and that the resolution of the crisis could involve the
termination of faculty members holding tenure in academic units within the affected school or library, the dean or library director shall prepare a statement describing (a) the rationale for proposing the existence of a bona fide financial crisis and (b) a specific plan based on this rationale. The statement shall be reviewed by the faculty affairs committee within the potentially affected school or library for the purpose of advising the dean or library director. In addition, the dean or library director should review the rationale and plan with the school or library administrative leaders (associate and assistant deans or librarians), department chairs, and elected Faculty Senate members from the school or library. Based on these consultations, the dean or library director shall make a recommendation to the Provost.

If the President believes that a bona fide financial exigency exists or is predictable or concurs with the school or library that a bona fide financial crisis exists or is predictable and if the resolution of either financial emergency could involve the termination of a tenured faculty member, then the President shall inform the Senate through the Chair of the Faculty Senate of the nature and extent of the financial emergency and shall request that the Provost develop a plan to accommodate academic and research portions of the financial emergency. The Provost's plan to resolve a bona fide financial crisis may propose the termination of tenured faculty only from the school or library in which the bona fide financial crisis exists.

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2.18.3.1 Acquisition of Faculty Advice by the Provost

The Provost shall appoint a committee composed of a tenured faculty member, where possible from each school, Mervyn H. Sterne Library, and Lister Hill Library of the Health Sciences who does not hold an administrative appointment at or above the level of department chair. Half of the members shall be selected by the Faculty Senate, and half of the faculty members shall be selected by the Provost.

The committee is charged with reviewing the urgency of the bona fide financial exigency or bona fide financial crisis and the appropriateness of the Provost’s plan, while acting in the best interests of UAB as a whole. The committee shall have access to all information reasonably available at the time, including documentation that a bona fide financial exigency or bona fide financial crisis exists and documentation concerning the Provost's plan for alleviating the financial emergency. Within 30 calendar days after its initial meeting, the committee shall submit to the Provost a written recommendation concerning the financial urgency and the Provost’s plan for its resolution.

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2.18.3.2 Provost’s Actions

The Provost shall submit a recommendation to the President describing a specific plan to accommodate the bona fide financial exigency or bona fide financial crisis, including any recommendations for the termination of tenured faculty members. The Provost also shall submit to the President the recommendations of the faculty committee.

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2.18.3.3 President’s Actions

Within thirty days of receipt of the Provost’s recommendation, the President shall (a) deny the recommendation, (b) return alternative recommendations to the Provost for his or her advice, or (c) accept the original recommendation. Alternative recommendations returned to the Provost for his or her advice will follow the process of acquisition of faculty advice detailed in this Handbook.

If the President’s decision requires the termination of tenured faculty member(s), such faculty will be notified in writing by the President before the President requests approval of the decision of financial exigency or financial crisis by the Chancellor and the Board of Trustees. A faculty member may request a hearing in accordance with Appendix C.

If, after the above notification(s), the President remains committed to a declaration of a financial emergency, then, in accordance with Board Rule 301, the President shall notify the Chancellor and the Board of Trustees that a bona fide financial exigency or bona fide financial crisis exists within UAB and the President shall propose UAB’s plan to meet the crisis, including any and all proposals for termination of tenured faculty members. The Chancellor and the Board of Trustees must approve the declaration of a bona fide financial exigency or a bona fide financial crisis before the termination of any tenured faculty member for either financial cause. Simultaneous with the President's notification to the Chancellor and the Board of Trustees, the President shall inform the Faculty Senate through the Chair of the Faculty Senate of the details of UAB’s proposed plan.

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