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July 25, 2003

Regents OK general fund operating budget, salaries

by Anne Krapfll
Iowa State's general fund operating budget received approval from the Board of Regents, State of Iowa, during the July 17 meeting. The operating fund for this fiscal year of $426.3 million reflects nearly a $7 million reduction in state appropriations (2.9 percent).

The state reduction will be divided among the general university ($5.5 million), Ag Experiment Station ($897,556), Cooperative Extension ($571,130), Leopold Center ($13,423) and livestock disease research ($6,382).

Increases in tuition and fees are expected to generate $23.9 million in new revenue. Some of this will be used to offset the lost state funding, as well as for student financial aid (nearly $7 million), faculty and staff salary increases ($6.6 million), unavoidable cost increases ($2.5 million) and strategic initiatives ($2.3 million).

Nearly $10.4 million in internal reallocations will help balance the budget and be used for new faculty positions, faculty and staff salary increases, opening new buildings, information technology and Web system improvements and a chief information officer.

Salary increases
Salary increases for all university employees also received regent approval. The increases were effective July 1 and will be reflected in the July 31 payroll.

Faculty and P&S employee average salary increases are higher than the 2 percent average announced in May. A central allocation from new tuition revenues and reallocations from other new revenue will cover an average 2 percent salary increase. Units also had the flexibility to reallocate additional dollars to supplement the central allocation.

The estimated average salary increase for merit staff is 5.12 percent. Because the increase is given in two pieces, it is difficult to determine the average at the beginning of the fiscal year. The increase includes the 2 percent matrix move given on July 1 and the additional increase each employee receives on his or her anniversary date.

The regents approved a 2 percent salary increase for President Gregory Geoffroy, bringing his salary from $281,875 to $287,513.

The salary policy for faculty and P&S staff this year is that all salary increases are based on merit. (Promotion increases should not substitute for merit increases.) Salary increases will not include a cost of living consideration. Managers have been encouraged to address equity and market issues as well as they can with limited funds.

Employee group Average increase
Sr. administrators*2.25%

*president, vice presidents (3), vice provosts (3) and deans (9)

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Published by: University Relations,
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