ASSOCIATED PRESS

NEW BRUNSWICK, N.J. - Rutgers University says it will cancel scheduled pay raises and freeze the salaries of its 13,000 employees, a move it says will save $30 million.

Officials say the move - announced Thursday in a campus-wide e-mail - was made because Rutgers faces an "extreme fiscal crisis" brought on by state budget cuts.

Rutgers invoked a contract provision that says the university doesn't have to give raises if the school doesn't have the money to cover the payroll. But officials say the raises may be reinstated if the budget picture improves.

The university's 12 employee unions criticized the move, and union officials said they may go to court to force Rutgers to honor its contractual agreements.