SUBJECT:  Proposed 2001-2002 Staff Salary Plan

As previously announced to you in a July 30, 2001 notice, Governor Davis and the Legislature finalized the 2001-2002 state budget, which includes funding for UC staff salaries. You are also aware that the fiscal environment of the state has produced less positive results than initially anticipated, causing a drop in state revenues and a shortfall in the funds provided to the University for salary increases. The UC Partnership Agreement with the Governor called for an annual four percent increase in the funds UC uses for fixed costs, including salary increases, increased health benefit costs, inflationary price hikes and other similar expenses. However, due to the state's limited resources, the final 2001-2002 state budget reduced this amount to two percent. Thus, the limited resources provide for a general two percent salary program, effective October 1, 2001.

We realize that this outcome is particularly disappointing given our need to attract and retain the talent necessary to maintain UC as a leading educational institution as well as a competitive employer. However, efforts will continue to be made to impress upon the Legislature and the Governor the importance of sustaining full partnership funding for employee salaries. Thank you for your understanding of this situation and for your continued dedication and contributions to the UC in general, and to UCSD in particular. Allocation of the 2% salary increase funding for staff employees is proposed as follows:

STAFF IN FLAT-RATED OR STEP-BASED SALARY RANGES
Staff in flat-rated or step-based salary ranges would receive a general range adjustment with salary increase of 2%, but no merit increase program for 2001-2002.

STAFF IN OPEN SALARY RANGES WITHOUT STEPS
Using a 2% fund pool, the regular merit program will be implemented in a manner that rewards employee performance and recognizes the limited funds available. Generally, no adjustment to salary range minimums and maximums is proposed for 2001-2002. However, several Professional and Support Staff (PSS) payroll titles are proposed for re-grading within the salary structure. They are:

Athletic Trainer (9458) and Athletic Trainer-Supervisor (8023) from PSS 4 to 5

Sr. Orthoptist-Supervisor (8042) from PSS 4 to 6

Associate Chief of Rehabilitation Service (9449) and Associate Chief of Rehabilitation Service-Supv (8022) from PSS 5 to 6

Staff Research Associate II-Supervisor (9616) from PSS 4 to 5

Staff Research Associate IV-Supervisor (9614) from PSS 5 to 6

Senior Boat Operator (8386) from PSS 2 to 3

Boat Operator (8387) from PSS 1 to 2

Salary actions for staff in unionized bargaining units are subject to the terms negotiated in collective bargaining agreements and more information will follow as agreements are reached.

Salary increases for academic personnel may differ and will be detailed in a separate communication from the Senior Vice Chancellor, Academic Affairs.

Campus employees with questions or comments may contact Judy Johnson, Compensation Manager, via electronic mail at jjohnson@ucsd.edu, or via telephone at (858) 534-0986. UCSD Healthcare employees may contact Ann Skinner, Director, Healthcare Human Resources, via electronic mail at askinner@ucsd.edu or SYSM Code: AMR1 or by telephone at (619) 543-7622.

                                                Rogers Davis
                                                Assistant Vice Chancellor -
                                                Human Resources