Common use of Financial Exigency Clause in Contracts

Financial Exigency. A reduction in force (RIF) due to financial exigency must be documented. Financial exigency is defined as a serious financial crisis that jeopardizes the University's mission and effective operation. The Administration will consult with the Faculty Association to demonstrate the existence and extent of the University's financial problems. The NMHU Faculty Association and Faculty Senate will be apprised of the situation in a timely manner in order to be able to have time to study the documentation used to demonstrate the need for the RIF. Common causes of financial exigency include decreasing enrollment, inadequate funding, and increased operating costs. Data and other evidence used to establish the need for faculty reductions will be shared with the faculty. In cases of termination because of financial exigency, the place of the faculty member involved will not be filled by a replacement within a period of three years unless the released faculty member has been offered re-instatement and a 20-day period in which to accept or decline it. The Administration will work with the Faculty Association to explore other cost saving options before implementing a RIF affecting tenured faculty. When implementing a RIF is necessary due to financial exigency, the Administration will give top priority to instructional requirements and institutional needs. These will be decided in consultation with the NMHU Faculty Association and Faculty Senate. If a faculty member affected by a Reduction in Force is re-hired, all rights and benefits accrued at the time of the separation will be restored upon re-employment.

Financial Exigency. A reduction in force (RIF) due to financial exigency must be documented. Financial exigency is defined as a serious financial crisis that which jeopardizes the University's University‟s mission and effective operation. The Administration will consult with the Faculty Association to demonstrate the existence and extent of the University's University‟s financial problems. The NMHU Faculty Association and Faculty Senate will be apprised of the situation in a timely manner in order to be able to have time to study the documentation used to demonstrate the need for the RIF. Common causes of financial exigency include decreasing enrollment, inadequate funding, and increased operating costs. Data and other evidence used to establish the need for faculty reductions will be shared with the faculty. Before terminating an appointment because of financial exigency, the institution, with faculty participation, will make every effort to place the faculty member concerned in another suitable position within the institution. In cases of termination of appointment because of financial exigency, the place of the faculty member involved will not be filled by a replacement within a period of three years unless the released faculty member has been offered re-instatement and a 20-day period in which to accept or decline it. The Administration will work with the Faculty Association to explore other cost saving options before implementing a RIF affecting tenured faculty. When implementing a RIF is necessary due to financial exigency, the Administration will give top priority to instructional requirements and institutional needs. These will be decided in consultation with the NMHU Faculty Association and Faculty Senate. If a faculty member affected by a Reduction in Force is re-hired, all rights and benefits accrued at the time of the separation will be restored upon re-employment.