December 18, 2008
To the UT Family:
Many of you have closely followed news of the pending budget reductions. Today, I am announcing that my executive staff and I are taking voluntary pay cuts of 5 percent. We also will relinquish our University vehicles. These measures will save the University more than $400,000 a year.
This afternoon, I met with the executive staff via videoconference. The University is planning for a reduction of up to $100 million, or 20 percent.
It’s inevitable we’ll be making difficult cuts. We felt it was appropriate to begin with the leadership responsible for developing those plans.
The salary cuts are effective Jan. 1. Vehicles –- with an estimated compensation value of $5,000 each annually –- will be relinquished on or before April 1, 2009, to provide time for any needed arrangements to secure personal vehicles.
The cut in salaries equates to $254,206, and the money saved will go back to the staff members’ departments and be used to offset their budget reductions. The University expects to save about $150,000 a year on the relinquishing of 19 staff vehicles.
In addition, salaries of the men’s and women’s athletics directors at UT Knoxville do not come from public funds, but both athletics directors –- who report to me -- will donate the equivalent of 5 percent of their base pay to the University to support academic programs. That combined amount is equal to $24,700.
The University is continuing to work through this difficult time, and I will provide more information about potential cuts as it becomes available.
Thank you for your continued hard work on behalf of the University.
- John D. Petersen
