The University of Texas system will lay off about 3,800 employees at its University of Texas Medical Branch at Galveston, according to a statement from the system. Representing nearly one-third of UTMBs workforce, the job cuts are a direct result of the severe damage caused by Hurricane Ike in mid-September.
Detailed financial analysis shows that UTMBs current rate of expenditures, including the continuation of wages and benefits for faculty and staff who have not returned to work, exceeds revenues by almost $40 million per month, according to the statement. UTMB will deplete its financial resources and reserves in approximately three months, leaving the institution in the untenable position of having no funds to continue to operate.
The statement also said the Board of Regents cannot use permanent university funds, available university funds, or funding from the Federal Emergency Management Agency to fund operating expenses or the payment of wages and benefits.
Employees will be informed about the layoffs in the coming weeks, but they will remain on the payroll until mid-January, a spokesman said in an e-mail message. The University of Texas has six hospitals and nine academic institutions. -- by Jessica Zigmond