University of California, San Diego

August 22, 1994
SUBJECT: Proposed University Staff Salary Plan for 1994-95
As announced earlier, effective July 1, 1994, the University has restored fully the base salaries of employees who were subject to the temporary salary reduction during 1993-94. The salary restoration was reflected in August 1 paychecks for those paid monthly and July 27 for those paid biweekly.
As you probably are aware, the Governor signed the 1994-95 California State budget on July 8, providing an overall increase in State general funds for the University for the coming year. However, companion legislation to the State budget also has been approved which might "trigger" a mid-year cut in the State budget--and UC's budget accordingly--if the State Controller determines later this year that State revenues are not sufficient to meet expenditures established in the budget. The Controller is not expected to make his reassessment of revenues and expenditures until November 15 at the earliest, and it will remain uncertain until then whether a mid-year cut will be necessary. If it is determined that there is a revenue shortfall, the Governor and Legislature could conceivably develop a plan to increase revenues, cut spending or both, which could eliminate altogether the need for a "trigger" or reduce its effects on the UC budget.
To address these uncertainties, the University has developed the following proposed 1994-95 staff salary plan. The proposed plan, which will require Regental approval when more information is available from the State, is contingent on actual budget developments over the next few months. The proposal is also subject to notice, consultation, and/or meeting and conferring as appropriate under the Higher Education Employer-Employee Relations Act (HEERA).
"No Trigger" Plan
If mid-year budget cuts are not required, staff salary increases will be provided based on the State budget enacted on July 8. For employees in the merit-based A&PS and MAP Programs, the fund pool available for merit increases--a combination of range adjustment and merit funds--is proposed to be 3.5% effective October 1, 1994. In addition, it is proposed that .8% be set aside on a permanent basis to augment funding for non-base building award programs for distribution at the campus level.
The General Increase (range adjustment) available for eligible classified staff employees would be 2.2% effective October 1, 1994, plus an additional .8% for non-base building awards. In addition, those classified staff eligible for merit increases would receive half-year increases averaging one step (approximately 5%) on the six-month delayed basis that has been in effect for the last few years. Thus, salaries of those eligible for merit increases on July 1 would be increased effective January 1, 1995, and salaries of those eligible for January increases would be increased effective July 1, 1995. Six-month, casual, and casual restricted increases likewise would be delayed six months from the date they normally would be awarded.
The most senior University officers, i.e., the President, Chancellors, Vice Presidents, and Officers of The Regents, would not be eligible for any salary increases in 1994-95. For other eligible Executive Program members, the fund pool available for merit increases would be 1% effective October 1, with an additional .25% set aside for non-base building awards.
October general range increases for classified staff, and merit increases for the A&PS, MAP, and Executive programs would not be processed until the University receives information regarding the State Controller's assessment of the State's financial condition in November. If this salary plan is adopted, the increases would be applied retroactively and paid starting in January, 1995.
"Trigger Plan"
If a mid-year budget cut becomes necessary, it is expected that, at minimum, the merit fund portion of the "no trigger" plan described above would be implemented for staff, with the exception of Executive Program members. Classified Staff merit increases, as well as six-month, casual, and casual-restricted increases, would be provided as explained above in the "no trigger" plan. For A&PS and MAP employees, the fund pool available for merit increases would be 2% effective January 1, 1995. Other salary actions that might be possible would depend on the size of the actual budget cut and available funding.
If you have any questions or wish to comment, please contact Judy Johnson, Compensation Manager at extension 40986 or via electronic mail jjohnson@ucsd.
Rogers Davis
Assistant Vice Chancellor -
Human Resources