Nearly two decades have passed since Southern University declared financial exigency in 1988, but former Southern University System President Dolores Spikes recalls it like it happened yesterday.
Spikes began serving as system president and interim chancellor in 1988. The first woman to serve as president of a university system in the nation, she led the SU system from 1988 to 1996.
“It’s important that SU maintain those high qualities of the institution once out of financial exigency. Just to survive is not enough. SU must survive with certain qualities that attract students to come,” explained Spikes.
In 1988, Spikes was faced with $5.2 million being cut from the university due to statewide budget cuts made by Gov. Buddy Roemer. Financial exigency was declared in the summer of 1988, prior to Spikes’ appointment as president.
“Financial exigency is simply a tool that can be utilized to get out of a financial condition legitimately,” Spikes said. “I’m amazed by the comments made in the papers about what people are saying financial exigency will do to the institution in terms of dire consequences.
I didn’t see that with my experience with institutions but some institutions came out better because they went through it properly.”
According to the 1989 Board of Supervisors’ figures, a total of $909,000 was saved due to layoffs and termination of temporary workers. It is currently unknown how much will be saved during this current status of financial exigency. The retrenchment plan, which is currently being finalized, will be released during the Dec. 16 board meeting.
“It was an open process and I think that’s why we came back a strong university,” said Spikes.
“There were other challenges but I think during those times there was a strong element of trust. I didn’t ask anyone to do something I wouldn’t do myself,” Spikes said. “Everyone did it voluntarily and all the administrators were first to give.”
The majority of employees involved honored their pledge in 1989, Spikes said, and the university bounced back from financial exigency in two to three years as she promised. The university was able to give employees a four-percent raise after the cuts.
A close friend of hers was the only person who did not contribute, Spikes said, telling her his “anti-administration” and “anti-board” beliefs prevented him from participating.
Only one person didn’t contribute and he (name not given) was a close friend to Spikes. His reason was due to his “anti-administration” and “anti-board” beliefs.
Before declaring financial exigency in late October, current SUS President Ronald Mason, SUBR Chancellor James Llorens and tenured faculty members initially decided to take a mandatory 10 percent cut from their paychecks. A participation total of 90 percent was required to avoid declaring financial exigency. Less than 65 percent agreed to have salaries cut and some faculty reneged their commitments.
During the current state of financial exigency, a draft proposal has been created which outlines a five-college model that would merge programs. Consolidations and shortened semesters were implemented but according to Spikes the money that needed to be saved were found in salaries.
“Most of the money was tied up in the salaries of faculty and staff. The reorganization of colleges can only produce so much of savings. How much can you really save by laying off or terminating a few deans?” Spikes said. “It’s not going to be much. It’s a hard process to go through knowing someone’s livelihood would be affected, but you must go where the money is.”
Spikes said she does not believe financial exigency causes a decline in enrollment.
“I do think a lack of recruitment and retention is the cause of declining enrollment,” said Spikes.
In the late 1980s and early 90s an estimate of more than 10,000 students were enrolled at the SUBR campus alone according to archives. Today, approximately 6,000 students are enrolled according to a DIGEST report published earlier this semester.
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Spikes recalls 1980s crisis
November 28, 2011
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