SC colleges could furlough workers during coronavirus, but not without permission
South Carolina’s public colleges and universities are financially hurting as the state continues to feel the personal and economic pains of the COVID-19 outbreak, with the state’s largest campus projecting it could lose upwards of $40 million.
To bear those costs, university officials have put everything on the table: from possible pay cuts and hiring freezes to delaying much-needed capital improvements. But one of those options — to furlough employees — first requires approval from the state, starting with the General Assembly.
Currently at stake is a public university system slowly bleeding financially because of a pandemic that hit South Carolina last month, shutting down businesses and public events, moving students off campus and their classes online, and forcing colleges and universities to send money back to students.
As of this week, the state’s cases of the coronavirus, which causes the potentially fatal respiratory disease COVID-19, have crested 3,000, while the death toll has climbed near 90.
As a result, so far the state’s public colleges and universities collectively project about $118 million in revenue loss through the spring semester. More than $19 million in losses will result from a switch to online learning, and more than $98 million stem from refunded money, according to the latest figures from the S.C. Commission on Higher Education.
Furloughing workers could be one temporary fix to dampen the blow of some of that financial loss for colleges. But to take that step, colleges and universities need state lawmakers to take legislative action. And this month, the General Assembly failed to pass legislation including the mechanism that would pave the way for higher education furloughs.
Before colleges and universities can furlough employees, the Legislature must pass a continuing resolution. The legislation currently before lawmakers would allow state government to continue operating at current spending levels beyond June 30, and it also would include a furlough option, allowing colleges and universities reeling from financial losses resulting from the coronavirus outbreak to get the state’s Department of Administration to sign off on their plans.
Lawmakers have agreed to spend $180 million to deal specifically with the state’s response to the coronavirus, including to keep hospitals afloat. And of that cash, up to $15 million to help ensure the protection and health of the state’s voters, poll workers and local election officials during the June and November elections.
“Everything in the continuing resolution is important,” said Senate Majority Leader Shane Massey, R-Edgefield. “A continuing resolution technically deals with July 1 going forward, but a number of things included in that resolution apply immediately.”
Though both chambers approved the legislation, it and a sine die resolution — which outlines what lawmakers can take up past May 14 — hasn’t yet passed the full Legislature and the governor hasn’t signed it, setting lawmakers up for a necessary return to Columbia to pass the legislation and return in September.
“It is crucial and critical that we pass a continuing resolution,” House Majority Leader Gary Simrill, R-York, told The State last week. “Efforts are ongoing to sculpt an ability to come back as we did on April 8 prior to May 14 and get this continuing resolution (passed).”
SC colleges employ thousands
Universities employ hundreds, if not thousands of people at some of the state’s larger campuses.
There are more than 24,000 full-time equivalent positions currently at 26 of the state’s four-year universities and technical colleges, according to the state’s Department of Administration. There are more than 6,500 full-time positions at the University of South Carolina.
It’s not clear how many of those employees would be subject to a furlough under a university’s plan.
At the University of South Carolina, officials there have projected between $20 to $40 million in lost revenue through the end of the fiscal year, said university spokesman Jeff Stensland, who wouldn’t say whether the college would have to raise tuition as a way to counter the lost revenue amid the state’s overall projections that the state could lose up to $1 billion in new dollars due to COVID-19.
Stensland said USC is actively monitoring all potential impacts of the virus on college finances, including the state budget, federal aid and changes to summer and fall enrollment that could hurt revenue.
Under the federal legislation CARES Act, the state’s Columbia campus will get more than $21.4 million, of that $10.7 million for emergency financial aid grants to students. Midlands Technical College in Columbia is slated to receive more than $7.3 million and Clemson University would get another nearly $13.6 million.
“It is too early to project what the total financial impact will be into the fall semester, and a lot depends on the spread of the virus,” Stensland said.
The lost revenue could especially be a big issue for public universities already financially struggling, lawmakers said.
For example, S.C. State University, the state’s only four-year historically black public college which has been bailed out financially by the Legislature before, could find itself needing further aid to keep it afloat, lawmakers said.
For S.C. State, the CARES Act carves out more than $4 million.
“It is a real big issue for S.C. State,” said state Rep. Gilda Cobb-Hunter, D-Orangeburg. “They were just getting their footing back and then to have this hit in the middle of it is certainly not helpful. Naturally, the higher ed community is going to suffer.”
S.C. State University representatives did not immediately respond to repeated requests for comment.
Unique in the higher education community is the the Medical University of South Carolina.
Not only are universities losing money, so are hospitals, making it critical to help them, lawmakers said.
It’s “double” pain for them, Simrill said.
“You can make up dollars,” Simrill said, “but you can’t make up lives.”
This story was originally published April 14, 2020 at 1:49 PM.
