WHEREAS the Board of Trustees is responsible in accord with the Charter and By-Laws of Centenary College of Louisiana (the "College") for assuring that the College meet its chartered mandate to "organize such departments, courses of instruction, and schools of learning within the College as may be necessary to effectuate its educational purposes"; being required therefore to exercise appropriate fiduciary judgment and to set general policies for the College aimed at securing that end; and
WHEREAS preservation of the financial and academic viability of the College requires that the responsibilities of the Board of Trustees be exercised in a cooperative manner with the Faculty, while recognizing that the Board of Trustees ultimately is responsible to exercise its fiduciary authority to act as necessary at its own initiative so as to assure preservation of the College's financial and academic viability;
BE IT THEREFORE RESOLVED that the Board of Trustees approves the following resolution regarding financial exigency, to be added as Article V of the By-Laws of the College.
1. General Statement of Policy
Should a condition of financial exigency or the threat of it ever exist at the College, the Board of Trustees and its standing committees, the President of the College ("President"), the administrative officers, and the appropriate committees of the Faculty shall participate in a manner consistent with their duties and purviews as defined in the Charter and By-Laws of the College, the By-Laws of the Board of Trustees and the Faculty Handbook.
2. The Determination of Financial Exigency
1. Exigency. Financial Exigency is an imminent financial crisis that threatens the survival of the College as a whole and that cannot be alleviated by less drastic means than reductions in professional staff including the termination of appointments. ("Termination" refers to the release of personnel through means other than non-renewal of contract: e.g., the early ending of an unexpired contract in the case of untenured personnel or the release from contract of tenured faculty members).
2. Raising the Question. The President shall ask the faculty Economic Policy Committee (or its successor) and other sources within the College that the President deems appropriate to advise formally whether they believe a condition of Financial Exigency exists or is imminent, and that all feasible alternatives to termination of appointments have been pursued.
3. Recommendation. Recommendation to the Board of Trustees whether to declare Financial Exigency is the sole prerogative of the President. Having received advice as contemplated above, the President shall make a recommendation to the Board whether to declare financial exigency and shall report the full range of agreement or its absence provided by the Economic Policy Committee and other sources consulted.
4. Declaration. The Board of Trustees, alone, has the authority to declare a state of financial exigency.
5. Overcoming Financial Exigency
1. Finances. Development of a conceptual plan for overcoming financial exigency shall be undertaken by the Business Affairs Committee of the Board in conjunction with the Vice President for Finance and Administration of the College and at the request of the President. The Economic Policy Committee shall be consulted in developing this said plan. Final recommendation of said plan to the Board shall be the responsibility of the President. If a plan is approved by the Board of Trustees, it will then serve as the financial context for subsequent decisions.
2. Curricular Matters. In adjusting programs to meet financial exigency, faculty committee(s) shall develop with the Provost of the College proposals regarding program adjustments (including discontinuance of same) in accordance with the provisions of the Faculty Handbook, taking into account the limitations imposed by the financial conceptual plan, and shall advise the President regarding same. The President will make the final decision for or against discontinuance. The discontinuance of a department or program shall be accomplished in accordance with the Faculty Handbook.
3. Personnel Matters. In making personnel decisions regarding faculty in order to meet the constraints imposed by financial exigency, a proposal related to the termination of unexpired contracts of tenured and untenured faculty shall be developed by the Provost and Faculty committee(s) utilizing guidelines contained in the Faculty Handbook.
The Provost shall make a recommendation to the President to terminate specific contract(s) in accordance with said proposal. The President shall have the authority to terminate contract(s). The procedures described in the Faculty Handbook for implementation shall be followed.
Decisions related to the release of specific administrators will be made by the President in consultation with senior administrative officers and, where appropriate, with relevant college committees.
Approved by Board of Trustees May 9, 2009