Thursday October 11, 2001

$650 million state budget shortfall could jeopardize salary increases

Money for staff salary increases planned for April could be in jeopardy, UA President Peter Likins said at last night's ASUA meeting.

The state Legislature will begin discussing how to fulfill a several-hundred million dollar shortfall in the state's budget at a special session beginning Nov. 13.

This shortfall includes a soon-to-be determined budget cut for the University of Arizona - one that could exceed the already mandated $13.8 million, Likins said.

"They have to solve a $650 million problem," he said. "They have to find the money from somewhere."

UA Provost George Davis said last week that the university will not pull back on the across-the-board salary increases approved by the state before the budget cut mandate occurred.

He added that the state Legislature could pull back on those increases since they approved them.

The raises were approved last spring by the state Legislature. Under the plan, all state employees will receive an increase of at least $1,500 or 5 percent of their salary.

Since then, the state has found itself faced with a shortfall in funds due to lower-than-expected tax revenues and a drop in job growth. The terrorist attacks of Sept. 11 are expected to further increase the shortfall, but Gov. Jane Dee Hull said she is not sure to what extent.

Hull has already called for state agencies to cut their budgets by at least 4 percent, and after a special session of the Legislature that begins Nov. 13, officials are expected to find out just how large those cuts will be.

The University Compensation Advisory Team has been discussing for several months how the increases will be distributed.

Larry Schooley, professor of electrical and computer engineering and a member of UCAT, said the team is still considering several recommendations that have been put forth. Those recommendations will be passed onto Likins for approval.

The deadline for the recommendations is Nov. 13, but Schooley said that date could be pushed back due to the decision the Legislature is expected to pass down at the end of its session.

The distribution of the increases has been under discussion and debate because different state agencies have interpreted the Legislature's words differently.

At a Faculty Senate meeting earlier this month, Likins expressed interest in a recommendation that would give all staff $1,500 across-the-board increases with the potential to earn more through merit increases.

The majority of the Faculty Senate favored a plan similar to one at Northern Arizona University that would give all faculty a 5 percent increase in their salary, and the money used for merit would be used to fulfill that across-the-board increase. Schooley said faculty making less than $30,000 would still be guaranteed $1,500 under that recommendation.

Schooley confirmed that the Legislature could pull back on the promise of an increase if they chose to do so, and the reality of that will be better known after the special session.

Likins said the distribution of the money will be dealt with once officials know how much, if any, of the money will be available for increases.

"The fact of the matter is, we're having this great argument about money the state will probably take away."