Despite belt-tightening and possible layoffs, the University of Tennessee still plans to pay nearly $416,000 in bonuses to 202 employees who raise money from alumni and donors.
The bonuses are for raising $184 million in donations in 2008, surpassing the year's goal by $9 million and putting UT $44 million ahead in a seven-year schedule to raise $1 billion by the end of 2011.
UT Vice President Hank Dye said Wednesday the university intends to "honor the commitment for 2008, but going forward the incentive program is currently suspended and under review pending economic factors."
UT President John Petersen notified the UT Board of Trustees on Monday that the incentive program the trustees approved in 2006 was being suspended effective June 30.
He said money from vacant positions has been used to pay the bonuses, but those vacant positions will be gone as UT works to trim $60 million to $100 million from its budget because of declining state revenue.
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