Lehigh U. announces furloughs, pay cuts

Lehigh University is the latest area college to announce it is furloughing staff and imposing pay cuts on senior leadership to defray a budget deficit because of the coronavirus pandemic.

The Bethlehem university announced Monday that President John Simon will take a 20% salary cut, while all senior university leadership and college deans will take a 10% salary cut. Lehigh also will furlough some staff who cannot perform duties remotely starting July 1, although an exact number was not given.

In the announcement, Lehigh said it is bracing for a $40 million budget deficit for the fiscal year beginning July 1.

Additionally, all university retirement contributions to active employees will be temporarily suspended.

“We believe the actions we are now taking are necessary and prudent given the current outlook and the uncertainties of the future,” Simon said in an email to the campus community. “We recognize they require sacrifice by members of our community, and even a substantive change in the way some of us operate. While painful, they are needed to allow us the flexibility to respond and adapt.”

In his email, Simon said the deficit estimate factors in enrollment projections, anticipated loss from revenue streams, costs associated with making the campus safe and delivering education in a hybrid format. The university also predicts more financial assistance will be needed for some students because of the pandemic.

Last week, Lafayette College in Easton made a similar announcement regarding furloughs and pay cuts. Moravian and Muhlenberg also have furloughed workers who are not deemed essential.

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Jacqueline Palochko