Kotlikoff Addresses Staff on Challenges and Future Initiatives

On January 8, 2025, President Michael I. Kotlikoff delivered his annual Address to Staff at Cornell University, focusing on the numerous challenges the institution has faced over the past year amid political pressures and financial strains. In a heartfelt opening, he expressed gratitude toward the staff, whom he described as the “backbone of the university,” acknowledging their critical role in creating the vibrant atmosphere across the campus.

Before diving into the pressing issues, Rose Howard, representing the Employee Assembly, presented the 2025 Appreciation Award to the team behind the newly implemented floating holidays program. Jess Reynolds, a Human Resources policy consultant and one of the project leads, accepted the award, highlighting the program’s significance in enhancing flexibility and employee well-being.

Kotlikoff then addressed the “unprecedented challenges” that have affected Cornell and similar institutions, particularly noting the “seismic impact” of disruptions to research funding. He detailed the settlement reached with the Trump administration in November, which was pivotal in restoring vital funding for research labs. “When we learned we were being targeted by the administration with stop-work orders and non-payment of grants, we established two goals,” Kotlikoff stated. These goals included restoring crucial funding and maintaining Cornell’s autonomy in governance and hiring practices.

The settlement, Kotlikoff explained, not only restored funding but also facilitated the dismissal of civil rights investigations against the university. “None of our commitments to our students, staff, or faculty have changed,” he assured, emphasizing that Cornell’s commitment to inclusivity remains intact.

Despite progress with the settlement, Kotlikoff acknowledged that Cornell still faces significant financial obstacles. He cited rising operational costs, an expanded workforce, and reduced federal and state funding as ongoing challenges. “We are facing enormous and unpredictable financial headwinds,” he said, prompting the need for purposeful changes to safeguard the university’s academic mission.

Introducing the Resilient Cornell Initiative

To address these challenges, Kotlikoff introduced the Resilient Cornell initiative. This strategic plan aims to centralize functions, identify efficient processes, and reevaluate budgets while addressing unsustainable staffing levels through attrition and potential layoffs. “We’re doing our best to minimize layoffs and support our staff in the most humane way possible,” he stated. A new Talent Transition Service will be available for affected staff, alongside an internal career hub to connect employees with job openings.

Additionally, Kotlikoff discussed rising health care costs, which have necessitated increases in employee contribution rates. He highlighted that while Cornell has historically covered a significant portion of health insurance costs, these rates have gradually adjusted. Starting this month, the university will allocate an additional $17 million to employee health care costs, totaling $149 million in contributions for the year.

“I understand that these rising costs are a significant burden,” Kotlikoff said, acknowledging the financial strain felt by employees. Despite these challenges, he announced that the university will continue its Salary Improvement Program (SIP) in 2026, which will see base pay increases and performance rewards for employees. “Competitive and equitable pay is essential for our core mission,” he noted, explaining that both the SIP and necessary layoffs are part of a long-term strategy for a sustainable financial model.

The address concluded with a question-and-answer session, where Kotlikoff and Sean Moeller, Interim Vice President and Chief Human Resources Officer, discussed the initiative’s impact on staff and the broader university community. Kotlikoff reiterated the importance of community strength in overcoming challenges, stating, “One of Cornell’s strengths is our ability to work together to achieve great things.”

As the university navigates these complex issues, Kotlikoff’s leadership and the commitment of the Cornell community will be crucial in shaping its future.