One of the faculty members at the meeting made an interesting point. There is no current financial emergency to justify the termination of tenured faculty. The emergency is anticipated in 2010-2011. Plus, the administration has not declared a financial emergency.

I'm not quite sure of the comments made at the AAUP meeting, but the following is the language from faculty contracts:

The Board shall have the authority to terminate this contract at any time for the following:
a.  financial exigencies as declared by the Board;
b.  termination or reduction of programs, academic or administrative units as approved by the Board;
c.  malfeasance, inefficiency, or contumacious conduct;
d.  for cause. 

Financial exigency doesn't have to be declared for part b of the contract to be invoked.  Will the Board approve any cuts?  Don't know, but Saunders was asked this question at the last faculty meeting and she said that she has received no indication that it wouldn't approve cuts like these.  She went so far as to indicate that the Board thinks this is what the universities should be doing. 

Is there some reason why tenured faculty shouldn't be terminated--sure.  But I don't think you can invoke financial language to argue the point.