University of California, San Diego

BUSINESS AFFAIRS September 26, 1997
SUBJECT: Proposed 1997-98 Salary Plan for UC Faculty and Staff
As you may be aware, the 1997-98 California State budget signed into law by Governor Wilson on August 18, 1997 provides an overall increase of 5.9% in funding for the University, but also includes a $12 million one-time undesignated budget cut. The University's 1997-98 budget plan had been developed last fall on the basis of the Governor's four-year compact with higher education and received widespread support during Legislative budget hearings. Unfortunately, late in the budget process, it became necessary for the Legislature to make last minute cuts of more than $1.5 billion to the overall State budget as a result of a court-ordered State payment to the Public Employees Retirement System (PERS). Restoration of the $12 million cut on a permanent basis will be a top priority in the University's 1998-99 budget request.
The University has been studying options for absorbing the $12 million cut on a one-time basis for 1997-98. Based on the normal administrative consultation process, including a discussion with the Regents at their September 18-19 meeting, the following proposal for 1997-98 faculty and staff salaries has been formulated.
The proposed plan is to provide the level of faculty and staff salary increases originally proposed in The Regents' and Governor's budgets for 1997-98, but to delay the distribution of funding for general salary increases originally proposed for October 1, 1997 by one month to November 1, 1997. This measure, which would help to meet roughly half of the $12 million budget cut, will be taken along with additional one-time cuts in other areas of the operating budget to meet this year's shortfall.
Under the proposal, eligible academic employees not covered by collective bargaining agreements would receive a 2% general increase (range adjustment) effective November 1. The additional 3% parity increase for eligible academic employees, which has been a planned component of the University's four-year plan to restore faculty salaries to the average salary level at the eight comparison institutions by 1998-99, would be effective November 1. The normal schedule of merit increases for eligible academic employees not covered by collective bargaining applies this year.
For non-exclusively represented staff employees in merit-based pay plans, the fund pool available for merit increases based on performance--a combination of range adjustment funds, merit funds, and campus turnover savings--would be 4%, effective November 1.
Funding for staff incentive awards was allocated on a permanent basis in 1994-95 to each campus in the form of a block grant covering eligible staff. That funding will continue to be available for awards in 1997-98.
For exclusively represented academic and staff employees, salary actions are subject to the terms of existing collective bargaining agreements, and/or meeting and discussing, consulting, or conferring in accordance with the Higher Education Employer-Employee Relations Act (HEERA), as appropriate.
If you have any questions or comments regarding academic employees, please contact Steven Ross via e-mail at sross@ucsd.edu or via telephone at extension 42597. If you have any questions or comments regarding staff employees, please contact Judy Johnson via e-mail at jjohnson@ucsd.edu or via telephone at extension 40986. Please provide your questions or comments by October 24.
Marsha A. Chandler Steven W. Relyea Senior Vice Chancellor - Vice Chancellor - Academic Affairs Business Affairs