SPRINGFIELD -- Missouri State University is considering early retirements and voluntary furloughs for faculty and staff as it attempts to head off another dreadful budget year.  University President Mike Nietzel held a townhall meeting on Wednesday to address cost-cutting options that stop short of layoffs but address a $10 million revenue reduction that he's anticipating over the next two years.

Nietzel said the university must already begin looking ahead to the 2011 fiscal year, which starts next July 1, because that's when federal stimulus money is no longer available.  With general state revenues down 11 percent this fiscal year compared to the last one, large state cuts to higher education are likely.

Nietzel said there's "no bright prospect for $10 million to be replaced."

The first and most controversial idea floated by Nietzel is offering an incentive for voluntary faculty retirements.  The plan would give eligible faculty a one-time cash buyout, averaging around $19,000 -- or continuing health benefits for a set period -- in exchange for retirement.  MSU would potentially replace the retirees with less experienced, lower-salaried teachers. 

"You can hire back with instructors, there's a mix, or you can decide not to hire back," Nietzel said.

Some professors feel this option would cost the university prestige just to save money.

"The bottom line is the dollar, not the student, and this bothers me quite a bit," Pauline Nugent, a professor of classical languages, said during the meeting.

"The assumption that the replacement is always going to be inferior to the person who is taking this retirement option, I just think isn't valid," replied Nietzel.

"The incentivized faculty retirement was one thing that maybe was perhaps expressed unfortunately in terms of cheap labor," Nugent said later in an interview.

Nietzel said 168 teachers would be eligible for retirement.  Their average salary is around $74,000.

Twenty-three year veteran criminology professor Mike Carlie said he's consider working part-time to save money as well as his job.

"For me personally, one of the most attractive options would be a commitment from the university that they would hire me halftime during the year at half my normal salary," said Carlie.

Nietzel said the university could rehire retired faculty at a lower pay rate if needed, but Carlie would want a guarantee in order to sign onto the plan.

Another option is voluntary furloughs.  That means allowing faculty and staff to take staggered time off without pay.

"Voluntary furloughs have been available at other institutions. I think the experience overall is not a lot of people do it. It doesn't yield huge savings," Nietzel said.

It could be popular, however, and that will be Nietzel's biggest challenge:  finding a cost-cutting plan most can sign onto.

"There is a bottom line we can't ignore here," Nietzel said.

Nietzel also wants to do a university-wide study of attrition options and explore whether full-time employees would agree to go part-time.

Nietzel plans to hold another townhall meeting sometime next month to flush out more ideas.  Any recommendation would need to be approved by the University Board of Directors.  Nietzel stressed that he's still considering options and that no final decisions have been made.

Review Dave Catanese's LIVE TWITTER updates from the townhall HERE.

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