Cuts at NAU

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Have you heard? 

Northern Arizona University administration plans class cuts, nonrenewals, and “hiring avoidance” in response to budget shortfalls. 

NAU administration has a responsibility to the US as WORKERS. There is no NAU without the employees. 

 

What We Know About Upcoming Cuts

 

Northern Arizona University is not exempt from the “enrollment crisis”, or “demographic cliff”, we are seeing on college campuses across the country. NAU administration predicts at least a 5% drop in enrollment this fall, and as much as a 15% total decline by 2030. Publicly, administration isn’t saying much. Behind closed doors, campus workers are being told that this “enrollment crisis” will affect course scheduling and hiring, and are already being asked to “be tolerant of attrition”. Faculty senate has been warned about “contraction across the university”. The coming reduction in force will be based on demand, also known as student enrollment, and Notices of Appointment (NOAs) may be delayed or will go out on a rolling basis.

The facts are:

  • NAU is facing a $23M budget deficit over the next two years, because of the State budget not being finalized, declining enrollment, inflation, and some construction and building maintenance related expenses hitting at the same time
  • NAU administration expects enrollment to continue to drop at least until 2030
  • NAU administration plans to put the brunt of the financial costs incurred by lower enrollment onto campus workers in the form of class cuts, nonrenewals, and “hiring avoidance”
  • Departmental budget cuts will largely affect staff and Career Track Faculty

We have to be extremely careful in the way we strategize around enrollment dips in the coming years. Simply, declining enrollment, combined with less money in the state budget, means less money to work with in the budget. NAU administration is keeping information on the imminent workforce reduction largely quiet so that they can control the narrative. NAU administration will use the state budget and the enrollment dip to justify staff and Career Track Faculty cuts. Down the road, they will inevitably ask the remaining campus workers to “do more with less”. 

What we know for sure is that larger class sizes taught by a smaller pool of workers supported by a tiny departmental staff is not an investment in quality education and student outcomes. Instead of falling for that tired rhetoric, let's use lower enrollment as an opportunity to re-center education as a public good.

 

Non-Renewal Information

Facts About Your Final Paycheck

 

When will I receive my final paycheck?

Your final pay check will be paid on the next regular payday. If you are on a nine month contract but have your pay spread across 12 months, your final pay check will be paid on the next regular payday and will include any outstanding payments from your last day on contract to June 30th.

 

What about my PTO/sick time?

If your position was eligible for paid time off/paid vacation time, you are entitled to a payout for accrued vacation time. You will need to contact your supervisor because they will need to fill out an ePAR form to authorize this payout. Make sure to submit all outstanding ROAs and Timesheets to ensure timely payout.

There is no payout for unused sick time. But, make note of your remaining sick leave hours. if you return to work at NAU within less than a year, your sick leave balance will be reinstated. Employees who are retiring should enquire about Retiree Accumulated Sick Leave program.

 

What about additional payments?

Your final paycheck may include a variety of other payments/payouts, so it is strongly recommended that you make note of what additional payments you are entitled to and when you receive your pay check, double checking to ensure that you have received all payments.

Do not close your bank account until the full final pay amount and all pay outs have been direct deposited.

 

Facts About Your Benefits

 

How long will I keep my health insurance?

Your health insurance benefits end with your employment contract.

  • If you were on a less than 12 month contract and opted to paid only during the contract period, but pre-paid health insurance premiums, your pre-payments will be refunded.
  • If you were on a less than 12 month contract and opted to have your pay distributed across 12 months, there is no refund of premiums but there will be a lump sum payout of your contract with your last paycheck.

You can continue your medical, dental, and vision coverage through COBRA at full cost plus a 2% administrative fee

Only active employees can be seen at Campus Health Services.

 

What about my ASIFlex accounts?

Claims must be submitted to ASI no later than April 30th. You will only be reimbursed for qualified claims incurred prior to the last day of your coverage.

 

Life insurance and disability?

Employee life: You can continue your basic and supplemental employee life insurance through your provider by converting or porting your coverage within 31 days of the last day of coverage

  • The Hartford (Policy# 476687 & Group # 320471) call 800-523-5065
  • Securian (Policy # 34681) contact Benefits Options at  866-712-3443

Dependent life insurance coverage: you do not have the option of continuing your dependent life coverage.

Disability coverage: you do not have the option of continuing your short term or long term disability coverage. 

  • If you are currently receiving disability benefits, they will continue while approved by the provider.

 

What can I do about my retirement plan?

If you participate in a primary or supplemental retirement plan and are leaving the university but no retiring, you may:

  • Request a refund or distributions of your employee contributions, vested employer contributions if any, and interest earned on these amounts;
  • Roll over your retirement funds to an IRA or other qualified retirement plan; or
  • Leave your contributions on deposit for future benefits.

Contact your retirement plan or investment manager to review your options or to request a refund or distribution*. 

*Distributions taken before the age of 59.5 that are not rolled over to an IRA or other qualified retirement plan may be subject to taxes and penalties.

 

What about my educational assistance?

If you have been approved for educational assistance for a semester that begins after your contract with NAU ends, you will not be eligible for educational assistance for that semester.

 

Other Questions & More Information

For more information see the NAU Exiting Employees Information Page.

NAU Exiting Employees Info Page