The University of Wisconsin Board of Regents President Kevin Reilly recently announced the UW System must “tighten” its hiring policies in response to current economic instability.

In a memo released Oct. 28, Reilly said chancellors throughout the system must approve all new hires and deemed them essential to “the university’s mission at this time.”

UW System spokesperson David Giroux said the new policy is intended to work as a cost-saving measure. The memo was released shortly after the state government announced Wisconsin could experience a $5 billion shortfall in the next biennial budget.

“It’s a good time for us to be looking at ways to control cost and save money now so that we can mitigate the impact of any other cuts that may come later,” Giroux said.

Reilly made a similar request in late January, asking only chancellor’s or his or her designee to approve employees hires with tuition or general purpose revenue.

According to Board of Regents Vice President Chuck Pruitt, Reilly implemented these policies in an effort to take proactive measures during a difficult financial period.

“President Reilly wanted to make sure that we are doing everything we can in these uncertain times to prepare for what lies ahead,” Pruitt said. “I think it was a wise move.”

Giroux added proactive steps are necessary because the growing deficit will have to be confronted by the end of the year.

Pruitt said the Board of Regents is currently awaiting state revenue and tax collection estimates that are expected within the next three weeks. The Board of Regents’ decisions regarding hiring practices will be sharply influenced once the scope of the deficit is clearly defined.

“I don’t think I have any predictions,” Pruitt added. “Given the current national economy, early indications are that this is going to be a very difficult budget process that we’re going to embark on.”

Reilly is scheduled to make recommendations relating to the UW System’s pay plan in terms of salaries and possible increases. Reilly will be watching the next three weeks closely as he finalizes these proposals, Pruitt said.

Robert Bruininks, the president of the University of Minnesota, issued a similar memo Nov. 11. In the statement, Bruininks announced a “systemwide hiring pause” due to economic turmoil on both a national and statewide level.

While the UW System is currently facing problems with faculty retention — 35 percent of UW faculty members are 55 or older and are anticipated to retire within the next decade — Giroux does not anticipate the more stringent hiring policies will affect this issue.

“I don’t see a direct connection between the two. The retirement issue is a very long-term issue over the next decade or so. This process is a very short-term situation,” Giroux said.

Pruitt said he believes the move to tighten hiring policies was a good decision.

“I think we need to be vigilant in looking at everything that is going on these days just as families are doing it now with their family budgets,” Pruitt said. “The university has to be watching very carefully and doing everything we can to make sure that every decision we make is a good one.”