This sort of thing could become more common as colleges look to hire younger employees for lower pay.

Joseph Gerth of the Courier-Journal reports.

300 accept University of Louisville buyouts in cost-cutting move

About 300 longtime employees of the University of Louisville — roughly 5 percent of the school’s work force — have accepted a buyout plan intended to reduce salary costs, President James Ramsey said Thursday.

“We’re at around 300 with people indicating they want to go ahead with voluntary separation,” Ramsey said in an interview following the school’s Board of Trustees meeting.

He said U of L hasn’t determined how much money it will save with the buyouts, which were offered in February amid state budget cuts and tuition and fee increases. But he said he expects the savings to surpass the school’s $2.75 million goal.

When it announced the buyouts in February, U of L said it hoped at least 200 employees would take the offer, allowing the university to replace them with newer, lower-paid employees.

The deal offers faculty one year of pay and the ability for professors to teach part time. Administrators and staff would receive six months’ pay. Some health care benefits also are included.

John Ferre, the interim dean of the College of Arts & Sciences, said the buyouts are problematic because they will mean a large number of faculty with experience and institutional knowledge will be leaving. However, they will also free up much needed money, he said.