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June 29, 2001

Pay hike average could top 3.5 percent

by Anne Krapfl
The goal for the average salary increase for faculty and P&S staff in the next fiscal year is as close to 4 percent as is possible.

Mark Chidister, Iowa State's assistant to the president for budget planning and analysis since June 1, said trends of the last few years suggest the average salary increase could be higher than the 3.5 percent distributed on campus. The recent practice at Iowa State of higher-than-average salary increases to employees in lower-salary positions could help ratchet up the university average, he said.

Iowa State will receive slightly more than $11 million from the state, via the Board of Regents, State of Iowa, for salary increases for the fiscal year that begins July 1. Alone, this amount could cover average salary increases of 4 percent. However, it isn't enough to fund average salary increases of 4 percent and the employer's share of anticipated cost increases in health care benefits. As a result, Iowa State will spend an additional $598,363 in new revenues including tuition increase revenues and indirect costs recovered on research grants to cover these expected increases.

Costs in the ISU Plan (serving P&S and faculty) will rise an anticipated 14 percent on Jan. 1; costs in the state plan covering Merit staff are expected to rise 12 percent to 26 percent July 1 (depending on plan coverage) and another 14 percent on Jan. 1.

"By reallocating this money now, we are trying to avoid the need for a mid-year reallocation, as we faced this year,"Chidister said.

At their July 18-19 meeting, the regents will be asked to approve Iowa State's budget for fiscal year 2002, including proposed salary increases. If the university's budget is approved, Chidister said employees' July paychecks would reflect their new salaries.

Positions lost
Chidister also provided new numbers on ISU positions that will be eliminated July 1 to help meet a reduction of approximately $18.4 million to the university's operating budget $15.8 million of base budget reductions and $2.6 million to annualize the health care cost increases experienced this fiscal year. An anticipated 166 FTE positions will be eliminated (67 faculty, 62 P&S and 37 Merit). Thirty-two of those positions have people in them (15 P&S, 17 Merit). Additionally, 48 graduate student assistantships have been eliminated for FY 2002.

Human resource services director Carla Espinoza said written notices were mailed to the 15 affected P&S employees June 22. Because of the "bumping"that can occur in the Merit employees system, the university must submit a lay-off plan to the Iowa Department of Personnel for approval. That plan has been written and submitted; Espinoza said she can't guess at how quickly the proposed plan will be approved. Once it is approved, affected Merit employees will be notified.

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