Facing an uncertain economy and the possibility of federal funding reductions, University of Virginia leaders are urging faculty and staff members to curtail discretionary spending and plan carefully for other expenses.
The email sent to the University community Tuesday – signed by President Jim Ryan, Interim Executive Vice President and Provost Brie Gertler, Executive Vice President and Chief Operation Officer Jennifer “J.J.” Wagner Davis and Interim Executive Vice President for Health Affairs Mitch Rosner – noted the University is facing “a period of significant fiscal uncertainty, with potential deep cuts to federal spending on grants and contracts and on other core programs.”
“While our budgetary sources are diverse,” the message went on to say, “instability in several critical areas at once creates a substantial challenge for us.”
Specifically, University leaders are seeking:
- Significant limits to discretionary spending, including non-essential travel and purchases
- Additional scrutiny for the planned hiring of faculty and staff, and reviews of candidate searches already underway
- Suspensions of “off-cycle” raises and promotions, with limited exceptions
- Reviews of capital projects to identify which can be postponed or paused “without undue disruption or financial risk”
The email also said the University can’t promise merit-based salary increases and bonuses, but will endeavor to reward faculty and staff if possible.
“We recognize that our faculty and staff are our greatest assets, and we are committed to doing everything we can to provide for merit-based salary increases and bonuses,” the email said. “While we are not in a position to guarantee this, it is among our highest priorities.”
Many economists and investors are worried about the U.S. economy and the effect inflation and tariffs will have on it. Research universities like UVA are facing even more uncertainty as federal funding for research and other activity has, in many cases, been canceled or put on hold.
“We have navigated challenging issues together in the past,” the email concluded, “and we are confident that with careful management we will weather this storm as we have weathered others before it and recover with strength.”
