University of Michigan makes cuts, forecasts losses of up to $1 billion

Frank Witsli:

The University of Michigan announced cuts Monday to all three campuses — Ann Arbor, Dearborn and Flint — and Michigan Medicine, include reductions in hours, pay and nonessential expenses.

In addition, President Mark Schlissel said Monday in an open letter addressed to colleagues, there would be hiring and salary freezes, and if the financial situation worsens, even deeper cuts, including layoffs, may be necessary.

He also suggested that the university did not plan to tap into the endowment because it “supports funds that can be used only for a specific purpose,” and U-M is committed to honoring donor agreements and “support scholarships, important programs and the long-term stability of the university.”

The pandemic, he said, has adversely affected the community, “creating personal difficulties and adding fear and uncertainty to our lives.” It also “has threatened the financial stability and future strength of our university.”