There is no financial crisis at GW (pass it on)
Since our last meeting and communication about the Faculty Association’s pledge, we’ve received requests for talking points about GW’s financial situation. We share these points below.
For those of you who have signed, we hope these points help you keep your commitment to stop layoffs. For those of you who haven’t, we hope they illustrate why it is so important to push back against the administration’s false narrative about a financial crisis.
In fact, the administration is abandoning its narrative of financial crisis, and it is now touting layoffs for their own sake. LeBlanc clearly stated at the last Faculty Senate meeting (6/18) that he does not consider layoffs a last resort, and the administration is now predicting a shortfall much closer to the best case scenario –$100 million. In short, the administration is coming around to our position–the financial situation can be easily weathered without layoffs–while at the same time showing their true colors–the crisis was always a cover to make long-term structural changes.
The Faculty Association’s pledge asks faculty to organize together because we believe that this is the only pathway to achieving meaningful power within the University. Steering Committee member Sara Matthiesen outlined GWUFA’s approach in a recent Chronicle of Higher Ed article. As she writes, it is not enough for faculty to present reasoned arguments to the administration–our analysis must be accompanied by collective action if we want to build faculty power. We share it here in hopes that it will further assist you in upholding the pledge.
We also encourage you to up the ante on the organizing you’ve been doing thus far. What specific ideas do you have for making sure there are no layoffs? How are you upholding your pledge? How many colleagues have you had conversations with? How many have you convinced that this is their fight, too? Please email us and let us know!
When we organize for collective power, we win.
|Talking Points: |
Finances at GW and the Destructive Wastefulness of Layoffs
While there are short term financial challenges facing the university, there is NOT a financial crisis that warrants layoffs or furloughs at GW. President LeBlanc and the Board of Trustees have misrepresented their own financial projections to justify cuts to faculty and staff that are, in fact, unnecessary.
The administration has shown that their description of GW’s financial health cannot be trusted for the following reasons. They are selling off our future at GW for #funnymoney:
$85 million? $100 million? Where’s the $15 million?
The University’s calculations for its losses in the best case scenario total $85 million, but the LeBlanc Administration has consistently referenced a $100 million shortfall, rounding up $15 million as if it is all just #funnymoney.
What about the cost savings already incurred?
The University’s calculations exclude cost savings that specific units have already been required to make, such as a 10% reduction by CCAS Dean Paul Wahlbeck, or the $20 million already saved by the immediate freeze on merit increases for AY 2020-21. The LeBlanc administration is not engaged in rational financial planning. It is using #funnymoney to justify cuts to faculty and staff.
Waste and cronies
LeBlanc has consistently demonstrated poor, and even bad-faith, stewardship of GW, wasting GW funds on well-paid positions and lavish consultancies for his Miami colleagues and favored corporations. Now he claims that it is financially necessary to lay off the faculty and staff who carry out GW’s core mission, even while GW continues to dole out millions to these upper administration cronies. Just today GW announced the hiring of yet another upper administrator who will neither teach courses nor conduct research, but will no doubt earn several times the salaries of those of us who do.
Is this the 20/30 plan in disguise?
LeBlanc refused to provide any rational financial or other justification for his 20/30 plan, despite formal requests from the Senate and an unanimous faculty vote to pause implementation at the March 2 special faculty assembly. The plan would have cost GW millions in lost revenue and it aroused concerted faculty opposition in the senate and across the university. Faculty did not fall for the tired anecdotes and warn truisms LeBlanc offered as ‘explanations’ of his decision. Now he wants to use #funnymoney to justify the unjustifiable.
- There are innumerable ways for GW to meet foreseeable revenue reductions without the draconian layoffs, furloughs and other programmatic cuts with which the LeBlanc administration is threatening the present and future wellbeing of GW:
- GW already has more than sufficient financial resources to cover even its own worst-case projections for pandemic-related shortfalls. These include $500 million in cash reserves, an additional $300 million line of credit at present-day low interest rates, a $1.8 billion endowment, and massive commercial real estate holdings apart from its academic facilities.
- The Faculty Senate has, moreover, proposed its own series of cuts and revenue-generating opportunities that do not attack the core mission of GW, and avoid dipping into any of these resources.
- The Board of Trustees is obliged to protect in good faith the long-term health of the university. Investing in its faculty is the best strategy for achieving that objective. Threats of cuts, job insecurity, and other demoralizing and destabilizing tactics have just the opposite effect. So far, the Board of Trustees has worked hand-in-hand withthe LeBlanc administration’s wasteful expenditures on Florida cronies and others and now, as it threatens the university with destructive and unnecessary layoffs of faculty and staff. We will not be fooled by their bad-faith, #funnymoney accounting.