INSIDE IOWA STATE
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
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.
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.
Ames, Iowa 50011, (515) 294-4111
Published by: University Relations,
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