KU expects $120M deficit, leads to optional buyout

The University of Kansas plans to launch a voluntary buyout program for around 600 eligible employees as a result of the financial strain caused by COVID-19.

The University, which announced its plans on Monday, expects a $120 million deficit for the fiscal year that starts July 1, KU Chancellor Douglas Girod said. This shortfall is a direct result of shutdowns nation and state-wide caused by COVID-19.

In order to qualify, employees are required to be at least 62 year old upon retirement and need to have to have worked at KU or a Kansas state agency for a minimum of 10 years and be active participants in the Kansas Public Employees Retirement System or in the Kansas Board of Regents mandatory retirement plan, Provost Barbara Bichelmeyer said in a Monday message to faculty and staff members.

“This was not an easy decision, however, it is one that will help enable the university to plan and forecast its continued capacity to provide high-quality educational experiences and exceptional research on our Lawrence and Edwards campuses long into the future,” Bichelmeyer said Monday in an article by Lawrence Journal-World.

Employees that are accepted into the Voluntary Separation Incentive Program will receive a lump-sum cash payment of $100,000 or their fiscal year 2021 budgeted base salary — whichever is lower — minus any legally required deductions, such as federal and state taxes, according to Lawrence Journal-World.

To meet the buyout deadline, employees must apply by July 10.