The proposed amount and timing of range adjustment and merit increases
were described in my prior notice dated August 22. As explained, the
final implementation of those plans is subject to collective
bargaining and confirmation that mid-year budget cuts will not be
necessary. Our plan is to proceed with the collection of merit
recommendations based on the assumption that no mid-year cuts will be
required, but then hold those recommendations until the budgetary
situation is confirmed before implementing them.

The following dates are provided to assist you with your planning, but
should be considered tentative given the uncertainties stated above.

MAP/A&PS SALARY INCREASE:

10/1/94       Effective date of increase

10/10/94       Salary increase guidelines distributed to
           Vice Chancellor/Director areas

10/26/94       Recommendations are due to Human Resources

Week of 11/21/94    Approved increases are distributed

1/1/95         Paychecks will reflect new rates
           (12/28/94 for biweekly paid employees)
           NOTE: Retroactive earnings for the period
           10/1/94 - 11/30/94 will be paid
           in a separate check later in January.

If mid-year budget cuts are necessary, it is anticipated that your
recommended increases would be reduced by a common factor and delayed
until 1/1/95 to avoid having to go back to managers for revised
recommendations. If a 3.5% merit budget would be reduced to 2%, the
common factor would be .57. For example, a $1,400 annual increase
which was recommended assuming a 3.5% merit budget would be
automatically reduced to $798 if the merit budget were reduced to 2%
($1,400 x .57 = $798). Your approved salary increase would be reported
back to you as $798.

An automated process has been developed for your use in recording MAP
and A&PS salary increases for this cycle. Further details about
accessing this system will be provided with your salary increase
guidelines.

STAFF MERIT INCREASE:

The following dates apply to those Staff employees who are coded in
the Employee Database as eligible for a merit increase on 7/1/94.
These increases will be subject to a 6-month delay and will be
implemented 1/1/95.

11/7/94       Merit recommendation forms distributed to
           Vice Chancellor/Director areas

11/23/94       Recommendations are due to Human Resources

Week of 12/12/94   Approved increases are distributed

2/1/95        Paychecks will reflect new rates
           (1/25/95 for biweekly paid employees)

The merit recommendation forms and approval listings will be based on
the rate prior to the range adjustment (if applicable). Although a
10/1/94 range adjustment is anticipated for many Staff
classifications, the increase will only be provided if there is no
mid-year budget cut and this will not be known until mid-November. If
approved, the range adjustment will be automatically applied even
though it is not displayed on the merit listings.

Departments are advised to make note of these key dates and do as much
advance preparation as possible in order to meet the prescribed
deadlines. Steps may include ensuring performance evaluations are
current and that each employee's status is correctly coded in the
Payroll/Personnel System, submitting PAF's to effect changes in status
or extensions of ending dates and discussing preliminary increase
recommendations with supervisors in your department. PAF changes that
are received by Human Resources by 9/26/94 will be reflected on the MAP
and A&PS salary increase forms. PAF changes that are received by Human
Resources by 10/21 will be reflected on the Staff merit increase forms.

Questions regarding these programs may be directed to Judy Johnson,
Compensation Manager at extension 40986 or via electronic mail.
Questions regarding individual employee eligibility status should be
directed to the Campus Records unit:

Campus:

KC Causey   x43847 Kelli Dayton   x40985

Rogers Davis Assistant Vice Chancellor - Human Resources