Inside Iowa State

March 13, 2009

Regents to consider FY10 salary freeze next week

When it meets March 19, members of the state Board of Regents will be asked to approve a policy endorsing no salary increases for non-union employees of the regent institutions (the three public universities and K-12 residential schools for the deaf and sight-impaired). Regent president David Miles announced his proposal earlier this week.

The recommendation follows his Feb. 27 announcement that the leaders of the same five schools had agreed to forego salary increases for the fiscal year that begins July 1. They also agreed to forfeit year-end bonuses they might have earned as part of their salary negotiations for the current year.

"With the reality that our required spending reductions may now be as high as $75 million or more [regent-wide], it is apparent that we must cap salaries immediately," Miles said. "All options to meet the necessary reductions remain on the table as we continue to respond to the state's financial need."

Earlier this month, leaders of the American Federation of State, County and Municipal Employees -- the union covering most of Iowa State's merit employees -- agreed to no cost-of-living salary increases on July 1. Merit employees not at the maximum of their pay grades will receive a 4.5 percent "step" increase on their anniversary dates in FY10.