Northern Arizona University will not be using a policy exception that allows Arizona universities to non-renew contracts for administrators and service professionals with a 90-day notice no matter when their contracts end.

The Arizona Board of Regents on Friday approved the policy exception, but NAU President John Haeger said the university does not intend to use the new procedure, which will be effective through FY2011.

“While we appreciate the board’s action to give the universities greater flexibility during severe budget constraints, it’s too soon in our budget process to adopt this new practice,” Haeger said. “We believe we have other options that are more suitable for NAU at this time.”

The president pointed out, however, that contracts likely won’t be arriving until late June, as budget negotiations continue and the effect of the federal stimulus package is measured.

The regents adopted the policy exception in anticipation of further budget cuts.

Generally, contracts for administrators and service professionals are issued for a full fiscal year, though the option for issuing shorter contracts exists within current ABOR policy and has been used occasionally in the past. Non-renewals can be given at any point in the contract, but employees are paid either to the end of the fiscal year or 90 days after they are informed, whichever is later.

The new ABOR policy exception allows for non-renewals at any point during the contract period as long as there is 90 days’ notice. The notice would have to be tied specifically to a determination made by the president, in consultation with the chief financial officer and university legal counsel, that severe budgetary constraints exist.

In the meantime, President Haeger and NAU Human Resources have been exploring contract language for FY10 that could change 12-month contracts to six-month contracts with another six-month renewal period to round out the fiscal year after the budget picture is clarified.

This “6/6 option” would allow NAU more flexibility to respond to its uncertain and frequently changing budget situation while preserving a greater period of certainty for administrators and service professionals.

Furlough provisions also may be added to contracts. However, no new proposed contract language has been adopted.

“Our contract policy has served the university well in recruiting and retaining top-notch staff and administrators,” Haeger said. “Any change would not be something we would do lightly, but considering the severe shortage facing the state of Arizona, we have to look at all options.”