By cutting salaries and other budget items, Cornerstone University avoided layoffs for the coming 2009-10 budget year, school officials said.

In order to allow this, some cuts must be made in other areas. The budget cuts included reduction in salaries for staff and faculty, suspending CU contributions to employee retirement plans for the 2009-10 budget year and changing the room and board discount policy for children of CU employees.

The pension contribution suspension will save CU approximately $850,000 while the incremental pay cuts will save approximately $575,000.

Marc Fowler, executive vice president and chief operations officer, said the cuts were made instead of laying off employees, because “we value our people here as our most important resource.”

CU President Joe Stowell said they tried to avoid laying off employees because one of Cornerstone’s core values is that we value people and that, by making these other budget cuts, “we could face the future with strength and ongoing viability.”

“We felt that we would rather enable our employees to keep their jobs and have all of us participate in shared sacrifice,” CU President Joe Stowell said. “Additionally, letting people go would have reduced the quality of our education and services to our students.”

All permanent full-time and part-time employees’ salaries will be reduced on a “sliding scale” of from 1 to 8 percent (see graph).

This cut will affect all Cornerstone staff, including administrators, the president’s cabinet and the president himself, as well all other staffers and faculty.

Also, in the past, CU has contributed a set amount of money to all employees’ retirement funds each pay period. That contribution, which equaled 10 percent of each employee’s annual salary, will now be suspended for the 2009-10 school budget year.

One of the last cuts being made to the system is the room and board discount policy of the children for CU employees. Academic aid will no longer be given in the area of room and board fees for all students living on campus. Fowler noted that this cut fell in line with many other Christian colleges and universities that CU considered peers.

Stowell said the cuts were made “in light of a couple of years of declining enrollment and to provide the necessary cushion to absorb any downsides of the massive uncertainties that we face in the meltdown of the national and global economy.”

Official news of the cuts was communicated on campus Feb. 27 by the president. Cabinet members were encouraged to meet with their staff to answer any questions that had arisen. Aside from this, a few additional meetings were also held to answer questions by employees.

“Dr. Stowell had prepared people that budget cuts were coming, so this was not out of the blue. I think in general there has been a lot of support for the shared sacrifice approach to the cuts,” said Nancy Schoonmaker, senior vice president and chief financial officer. “I think many people are very grateful to have a job with the current economic conditions.”

Schoonmaker said it is difficult to pinpoint which people will be hit hardest by the cuts.

“While we are concerned with the impact on all of our employees, we are particularly sensitive to those at the lower end of the pay range. This is why we did not go with an across the board pay cut or, everyone’s salary gets cut 5 percent,” Schoonmaker said. “The incremental scale ensures that those at lower pay ranges take the least amount of cut.”

One employee cut, however, was made.

“The plan did include a reduction of a total 1.1 FTE (Full-Time Equivalent) employee. This 1.1 was made up of various positions that were reduced in hours or eliminated,” said Schoonmaker.

Stowell said that the three-month decision-making process about the budget was not an easy one.

“These were very difficult decisions,” he said. “Even though I knew that the decisions were right and necessary, I also had to carry the weight of the impact that these decisions have on the lives of very special people who are committed to the mission of the University.”

Fowler said employee feedback has been generally positive about two main details, that of pay reductions being done on a sliding scale and minimal position reductions.

“Honestly, I am just thankful that I have a job. I love what I do here and feel very blessed to be a part of Cornerstone,” said Jo Taylor, staffing supervisor of CU food services.

Others said they respected the cabinet’s decision and felt it demonstrated much compassion and sensitivity.

“I think we as faculty support the mission of Cornerstone and want to stand behind it, no matter what. We’re willing to make adjustments to help Cornerstone succeed, because the students are worth it to us,” said Kathy Sindorf, associate professor of communication, public relations and media studies.

Although making such cuts has been a tough decision for all, many find it to be a worthy sacrifice.

“We are in extraordinary difficult economical times and the stakes are high for everyone, just about everywhere,” said Richard Honholt, director of campus safety. “A partial wage and benefit sacrifice by all of us in order to preserve our mission and maintain our service to our students, for both today and tomorrow, is a small price to pay when one considers all of the other options.”

Stowell emphasized that, although the decisions were hard to make, they will positively affect CU’s student body.

“I feel badly about the impact that they are having on the lives of our people,” he said. “And, yet, [I] feel that these budget decisions also protect and enhance our potential to move forward and to continue to provide a strong educational environment for our students.”