In this issue of Clif’s Notes, I provide an update on the budget recommendation for fiscal year 2014, including an across-the-board raise and the full professor incentive program, and announce an initiative we hope will allow employees to volunteer more in the community.
Tomorrow (May 16) at the Board of Governors Finance and Facilities Committee meeting, we will have our first discussion of the operating budget for fiscal year 2014. We will seek input from the Board and then ask for final approval at the June Board meeting for the budget that begins July 1.
In summary, for the first time in five years, we will see an increase in state appropriations. We also have excess revenue because of our enrollment, which exceeded expectations, and our modest tuition and fee increase. These two factors will allow us to make a significant investment in increasing the compensation package for faculty and staff for fiscal year 2014. The key elements of my presentation to the Board follow.
Increases in Operating Revenue
|$1,747,000||Expected increased revenue from increased enrollment and tuition/fee increases, net after scholarships and fee waiver increases|
|2,384,000||Increase in state appropriations ($2,457,827 less standard 3 percent holdback) — please note that the governor must still sign the budget into law|
Increases in Operating Expenses
|$800,000||Expected approximate increases in utilities, rent for Brick City and other expenses|
|3,517,000||Employee compensation approximate increases for Springfield and West Plains operating funds|
|(186,000)||Less net cost reductions|
This is what I will recommend to the Board for increasing compensation:
|$2,353,000||2 percent across-the-board raise (with fringe benefits) beginning July 1, 2013 for all full-time faculty and staff employed before April 1 for Springfield and West Plains operating funds — also includes 2 percent increase for graduate assistants|
|865,000||Required contribution increase from the University to MOSERS (state retirement system) net of anticipated cost saving from our new health care contract|
As part of the compensation plan, pay ranges for staff will be adjusted by 1 percent effective July 1, 2013. This adjustment is consistent with our policy to annually adjust ranges pursuant to changes in the Employer Cost Index. Those employees paid below the bottom of the new ranges will receive an adjustment to bring them to the minimum of their range prior to the 2 percent salary increase being applied.
This means that 100 percent of the increase in state appropriations, plus a major portion of the increase from tuition and fees (more than 85% of new money), will be invested in our faculty, staff and graduate assistants. This also means that with the mid-year raise and this 2 percent raise on July 1, we will have increased salaries by 4 percent during this calendar year. Those are actions we can feel good about.
In addition, Provost Frank Einhellig and I will recommend to the Board implementation of the Full Professor Incentive Program, which would provide an additional pay for those at the rank of professor who have continued to perform at a high level by conducting great research, being great teachers and mentoring students. While this is a selective program, the goal is to provide the monetary increase to up to 100 professors who would be phased in over time. To be eligible to apply, a faculty member would have to be in the full professor rank for at least five years at Missouri State.
This summer and fall, Frank will work with a committee to develop the criteria and application process. Applications will be accepted and reviewed in the spring of 2014. The first group of recipients would be funded for fiscal year 2015, beginning July 1, 2014. Our intent is to award at least 20, with more possible depending on the budget.
We believe this program is a good one and addresses the rank where we lag behind the most when it comes to national comparisons.
In addition to the core operating budget, the legislature included $1,325,000 in on-going funds to support health programs on both the Springfield and West Plains campuses.
Of the total, $500,000 has been identified to expand and improve the health programs on the West Plains campus. These include nursing, respiratory care, health management, medical coding, and other programs.
The $825,000 for the Springfield campus will support the new occupational therapy program. The first year or two of funding will be used for start-up costs, especially for much-needed health classrooms and labs. We plan to hire a director in the near future and then be ready to enroll the first OT class no later than the fall of 2015.
Over the past year or so, several staff members have asked if there is a way to make it easier for them to volunteer in the community, for their children’s school, and for other worthwhile causes. In response, we will soon announce that we have increased the personal leave days from the current one per year to three per year.
You will recall that personal leave days may be used for any purpose, but they are counted as sick leave days and are deducted from the employee’s sick leave balance. In order to use the personal days, you must have sick leave remaining. As you know, each full-time staff member earns 12 sick leave days per year, one each month. Effective with this change, personal day usage may be taken in four-hour increments.
This will give staff members the ability to use these two additional days to increase their community service and help Springfield become an even better place to live and work. One of the best ways to volunteer is on Days of Caring sponsored by the United Way.
We are in finals week and the last days of the academic year. Over the next few weeks, I will distribute additional issues of Clif’s Notes to keep you updated as we move into a busy summer. Thank you for all you do for Missouri State. See you at the commencement ceremonies.
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