BSC cuts jobs in wake of unanticipated budget shortage - WBRC FOX6 News - Birmingham, AL

BSC cuts jobs in wake of unanticipated budget shortage

By Sherea Harris

BIRMINGHAM, AL (WBRC) - There were job cuts at Birmingham-Southern College today and it could be forced to make  more cutbacks in the near future. Fifty-one jobs were cut at Birmingham-Southern.

The college is facing a $10-million  budget shortfall because of the economic downturn and accounting irregularities.  The school's president says he was hoping to avoid making these layoffs, but officials didn't have a choice as they dealt with such a large deficit.

In addition to 51 layoffs, 14 vacant positions won't be filled.

Its president, Dr. David Pollick, says the financial shortfall was caused by the economic downtown, some internal accounting errors, and the over-awarding of financial aid in the spring.

Those who lost their jobs were given severance packages.
 
Other cost cutting measures include a 10 percent pay cut for faculty and staff making the highest salaries, the suspension of the colleges contributions to retirement plans and cuts to employee benefits.

"We were able to identify 6 million dollars toward the target that we have for ourselves," said Dr. Pollick. "We are still at this point reviewing our academic programming to decide how we want to move forward into the next year where we can tighten those areas as well."

Dr. Pollick says in another 2 weeks officials will start looking at those possible academic program changes.

The school still needs to free up another $4-million to balance the new budget. It's expected to be completed in the coming days.

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