Iowa State University

Inside Iowa State
May 24, 1996

Proposed operating budget fortifies strategic plan

by Anne Dolan
Iowa State will invest $9.6 million next year in the six goals of its five-year strategic plan, according to a preliminary budget submitted to the State Board of Regents last week. The other key component in the preliminary budget is $9.1 million for increases in salaries and benefits for university employees. The preliminary budget will be reviewed again in June and a final operating budget for FY97 will be submitted to the regents at their July meeting.

The $9.6 million intended for strategic plan initiatives includes $1.7 million in new, non-salary appropriations from the state, $1.6 million in revenues from other sources and $6.3 million in internally reallocated funds.

Based on funding recommendations made by Gov. Terry Branstad and the Legislature earlier this year, the new non-salary state appropriations will be used for: specific initiatives to improve under-graduate education ($350,000), library acquisitions ($437,500), continued support of the College of Veterinary Medicine's "Healthy Livestock for Iowa" initiative ($700,000), and support for the recently formed Iowa Pork Industry Center and the proposed Beef Cattle Industry Center ($100,000 each).

The state appropriation for salary increases, including benefits, for employees is $8.9 million.

The university didn't receive from the state $597,789, the amount that would cover salary and benefits increases next year for positions covered by federal funds or related to indirect costs associated with sponsored programs in some units. Half of this amount, $298,894, will be reallocated internally by the units affected and the other half of the reduction will be spread across all units.

The preliminary salary increase average for faculty and professional and scientific (P&S) staff is estimated to be in the range of 3.5 to 3.7 percent. The actual percentage will be known when final state allocations are confirmed. One- third of the expected average increase will be given to faculty and P&S employees whose job performance meets expectations. Salary increases above that minimum will reflect merit and/or market or equity factors.

Promotion increments for faculty in FY97 will increase to $2,200 for professor (from $2,000), $1,875 for associate professor (from $1,700), and $1,550 for assistant professor (from $1,400).

Salary improvements for merit employees will include a 2.5 percent salary increase for all on July 1, and step increases and bonuses for merit employees who are eligible.

Spending on the strategic plan FY97

Strengthen undergraduate education $5,046,405 53%
Strengthen graduate/professional education and research $1,892,066 20%
Strengthen outreach efforts $1,415,234 15%
Sustain a stimulating and supportive university community $522,833 5%
Establish international leadership in the use of information technology and computation services $358,500 4%
Strengthen initiatives that stimulate economic development $319,746 3%
Total $9,554,784 100%
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