University Budget Committee Meeting

March 21, 2005

 

 

Chancellor Frederick Obear convened the meeting and stated that the 2005-06 budget cycle would be no less open than in the past; all necessary budget information will be given to the Budget Committee to enable them to provide the advice needed to help establish the 2005-06 budget.  The time frame of the budget hearings will be shorter, but all opinions/input will be collated and discussed.  The focus of the budget will be primarily on instruction and students, but not exclusively.  There are a lot of competing elements for limited funding.  Also, Dr. Obear stated he wants to carve out a portion of the budget for contingency or flexibility funds for the new Chancellor.

 

Dr. Obear called on Vice Chancellor for Finance and Operations Richard Brown.  Mr. Brown stated that many have called for a transparent/open budget process, and he has worked diligently towards that goal, coming a long way from the former days of “shoebox” budgeting.  Mr. Brown requested a standard reporting fiscal format from all Vice Chancellors that includes an accountability report for all funds authorized by the prior year budget process and a new three-year rolling budget and planning model. Data on the 2003-04 year-end close by major units will be provided.  Vice Chancellor Brown asked that all participants in the budget and planning process adopt and adhere to the principles of civility, respect, open dialogue, no finger pointing, and a focus on the good of the institution, along with the support of our core mission, instruction.  However, other components of the institution are important and a balance must be found.  Mr. Brown’s suggested hierarchy of needs include: instruction, Library, academic support, student support services, institutional support services, athletics, and auxiliary support units. 

 

Mr. Brown reviewed the budget instructions for 2005-06.  Highlights include a recommended state appropriation of $40,594,300; a return to the prior year base allocation, does not include a reduction; funds a permanent 1% pay raise for all University employees; a one-time, non-recurring bonus of 1% for all University employees; and funding for two capital projects—roof replacement for Lupton Library, Brock Hall, and McKenzie Arena, and central energy chiller system improvements.  Mr. Brown noted that if problems with Tenn Care are not resolved, the Governor has suggested the possibility of a 6% budget reduction for all Tennessee departments.  The reduction represents a potential $2.4 million loss of base funding for UTC. While Mr. Brown has to keep that in mind, he is certainly hopeful that the reduction will not occur. 

 

Mr. Brown also reviewed the UT Board of Trustees Resolution of the Statement of Commitment to Diversity and Equal Opportunity.  He advised the full statement was made part of the budget document and states:  Any performance evaluation of department heads, deans, vice chancellors, provosts, and chancellors/vice presidents of each campus/institute should include a review of performance with respect to the requirements and objectives of the Geier Consent Decree.

 

Mr. Brown stated that all budget requests should tie back to the University Mission Statement.  Mr. Brown reviewed the six strategic initiatives, continued by Dr. Obear:

 

  1. Claiming the assets of technology.
  2. Recruiting, retaining and celebrating diversity (includes compliance efforts with Statement of Commitment to Diversity and Equal Opportunity).
  3. Improving the potential of partnerships.
  4. Demonstrating accountability.
  5. Enhancing the learning environment, and
  6. Assessment that drives continuous institutional effectiveness.

 

Mr. Brown also asked that each Vice Chancellor address how all funds allocated to them last fiscal year were spent.  Mr. Brown presented the following PowerPoint presentation on budget information.     http://www.utc.edu/~mary-scott/BUDGET05-06.ppt

  

Stephanie Smullen, Chair of the Budget and Economic Status Committee, presented the following for her committee:

 

Budget and Economic Status Committee Compression Recommendations

 

The Budget and Economic Status committee has worked for several years to address salary compression issues.  The Faculty Senate agreed last year that salary compression should be reduced.  The Provost included funds in Academic Affairs’ current year’s budget and 3-year proposed funding plan to address compression.

 

The 2004-05 average salaries for each UTC department at each faculty rank and CUPA national averages for all public universities for each discipline at each faculty rank were provided by OPEIR.   Adjustments to each salary are made according to this model:

            CUPA Average – (UTC Salary + Adjustments) = Salary Gap

The Adjustments variable is used to address issues of merit and time-in-service.  The committee has not finalized the values to be assigned for these issues.

 

A summary of the funds needed to raise the average salary by rank for all departments to 100%, 95%, 90% and 85% of the National Average is shown below.  Detailed departments data is available.  All of the compression adjustments shown in this table assume that the value of the Adjustments variable is 0.   These figures are based on the departmental averages and not individual salaries. 

 

 

 

 

N

UTC

Ave.

Dec, 04

National Ave. Pub.

Univs.

% of

National

Average

Dec, 04

$

to be 100%

of National

Average

$

to be 95%

of National

Average

$

to be 90%

of National

Average

$

to be 85%

of National

Average

Assistant

81

50,492

53,401

94.6%

284,779

140,814

40,019

8,729

Associate

69

59,760

63,584

94.0%

388,013

222,467

91,948

18,737

Professor

123

71,184

83,422

85.3%

1,749,655

1,272,188

822,214

410,730

 

 

 

 

 

 

 

 

 

 

Salary Gap

273

62,157

66,802

93.0%

2,422,447

1,635,468

954,181

438,196

19% Fringe Benefits

 

 

 

460,265

310,739

181,294

83,257

 

 

 

 

 

 

 

 

 

 

TOTAL Salary and Fringe Benefit

 

2,882,712

1,946,207

1,135,476

521,453

Increase Required

 

 

 

 

 

 

 

 

Note that currently UTC salaries overall are 93% of the national average.   Salaries at the assistant and associate level are a similar percentage.  However, salaries at the professor level are only 85% of the national average. 

 

The greater compression at the rank of Professor is largely due to the lack of Cost of Living adjustments over the past 10-15 years.  The BLS Inflation calculator shows that a salary of $10,000 in 1995 is equivalent to a salary of $12.400 in 2004.  To keep up with the Cost of Living requires a 24% raise over the past 10 years.  As a rule those at the Assistant and Associate ranks have not been at UTC as long and therefore not seen their salaries reduced as much from the lack of annual Cost of Living adjustments.

 

*A detailed spreadsheet is included at the end of this document.

 

 

 

It was noted the comparison used in the report was national averages based on CUPA data (all sizes and classifications of public universities). After a discussion of different peer groups and comparisons, it was agreed that regardless of benchmarks or peers used, UTC has made progress but is still lagging in faculty salaries, especially at the full Professor’s level.  The issue of compression for long-term faculty was also discussed.

 

Mr. Brown noted in his review of year-end balances that all year-end balances were centrally pooled except for Academic Affairs.  Dr. Obear questioned why Academic Affairs was held harmless, and stated historically salary savings have been accessible to the Chancellor for budget and special funding flexibility.  This issue will be discussed further.

 

Mr. Brown called on Dr. Richard Rice, President of the Faculty Senate.  Dr. Rice asked for clarification of the role of the Budget Committee in determining the 2005-06 budget; Dr. Obear responded they will serve as an advisory committee—if a consensus cannot be achieved on various budget priority issues, as Chancellor he would make the final decision.  It was agreed that the Vice Chancellors would decide priorities for their areas.

 

Dr. Rice discussed lagging faculty salaries and the need for additional funding to attract and retain good faculty.  He stated the faculty was gratified by the $200,000 in additional funding by the Provost last year, and the $476,00 (or $400,000 without benefits) allocated this year, and stated the faculty would like to see continued compensation funding as a top priority.  The Faculty Senate also supports funding the $118,000 line item for Lupton Library; and funding of $500,000 for instructional equipment.  He felt all the needs were important, but these three were the top priorities for faculty.

 

Dr. Andrew Novobilski, Chair of the Council of Academic Department Heads, presented the following PowerPoint presentation: http://www.utc.edu/~mary-scott/CADH05-06.ppt

In closing, Dr. Novobilski reminded everyone why we are here—students.  The question, “How does it serve students?” should be at the forefront.

 

The meeting was adjourned.


 

Average UTC Salaries by Rank and Discipline Compared to 2004-05 CUPA National Norms for All Public Universities

(NCB and CB Institutions Combined)

 

 

 

 

 

 

 

 

 

 

 

 

New UTC Salary =

 

 

 

 

 

 

 

 

%(National Ave) - (UTC Salary + Adjustments)

RANK:  ASSISTANT

Adjustment = 0

 

 

 

 

 

 

 

 

 

 

% OF

$

$

$

$

 

UTC

 

UTC

NATIONAL

NATIONAL

to be 100%

to be 95%

to be 90%

to be 85%

CIP

Dept

 

Ave.

Ave. Pub.

Average

of National

of National

of National

of National

DISC

DEPT

N

Dec, 04

Univs.

Dec, 04

Average

Average

Average

Average

500701

ART

2

46,040

45,042

102.2%

------

------

------

------

520301

BACC

5

77,951

81,041

96.2%

15,450

------

------

------

260101

BIOL

3

43,908

49,248

89.2%

16,020

8,633

1,246

------

520101

BMGT

4

80,538

77,353

104.1%

------

------

------

------

521401

BMKT

2

77,590

77,782

99.8%

384

------

------

------

400501

CHEM

4

41,432

50,252

82.4%

35,280

25,230

15,179

5,129

110701

CPSC

1

63,036

69,842

90.3%

6,806

3,314

------

------

430101

CRMJ

1

43,354

48,085

90.2%

4,731

2,327

------

------

130000

EDUC

9

45,779

50,840

90.0%

45,549

22,671

------

------

310505

EHLS

1

44,740

48,414

92.4%

3,674

1,253

------

------

230101

ENGL

7

41,483

45,018

92.1%

24,745

8,989

------

------

110701

ENGR

1

64,953

63,048

103.0%

------

------

------

------

30102

ESC

2

46,850

54,469

86.0%

15,238

9,791

4,344

------

160101

FORL

1

41,200

45,905

89.8%

4,705

2,410

115

------

400601

GEOL

2

47,993

51,766

92.7%

7,546

2,369

------

------

190101

HECO

4

41,066

47,654

86.2%

26,352

16,821

7,290

------

450801

HIST

4

41,550

45,339

91.6%

15,156

6,088

------

------

220103

LAS

1

47,145

51,299

91.9%

4,154

1,589

------

------

270101

MATH

4

49,806

49,724

100.2%

------

------

------

------

500901

MUS

4

43,375

44,308

97.9%

3,732

------

------

------

511601

NURS

6

58,983

51,141

115.3%

------

------

------

------

389999

PHIL

3

40,400

45,523

88.7%

15,369

8,541

1,712

------

512308

PHYT

2

57,687

58,934

97.9%

2,494

------

------

------

451001

POLS

1

48,328

48,192

100.3%

------

------

------

------

420101

PSY

4

45,439

48,835

93.0%

13,584

3,817

------

------

459999

SOC

1

41,750

48,758

85.6%

7,008

4,570

2,132

------

500501

THSP

2

35,606

44,007

80.9%

16,802

12,401

8,001

3,600

 

 

81

4,089,831

1,441,819

 

284,779

140,814

40,019

8,729

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec 04

 

 

 

 

 

Weighted Mean for UTC Asst Professors

50,492

54,008

52,230

50,986

50,600

 

Weighted National Public Mean for  Asst Professors

53,401

53,401

53,401

53,401

53,401

 

UTC Weighted Mean as Pct of National Mean*

94.6%

101.1%

97.8%

95.5%

94.8%

 

 

 

 

 

 

 

 

 

 

Average UTC Salaries by Rank and Discipline Compared to 2004-05 CUPA National Norms for All Public Universities

(NCB and CB Institutions Combined)

 

 

 

 

 

 

 

 

 

 

 

 

New UTC Salary =

 

 

 

 

 

 

 

 

%(National Ave) - (UTC Salary + Adjustments)

RANK: ASSOCIATE

Adjustment = 0

 

 

 

 

 

 

 

 

 

 

% OF

$

$

$

$

 

 

 

UTC

NATIONAL

NATIONAL

to be 100%

to be 95%

to be 90%

to be 85%

CIP

UTC Dept.

Ave.

Ave. Pub.

Average

of National

of National

of National

of National

DISC

DEPT

N

Dec, 04

Univs.

Dec, 04

Average

Average

Average

Average

500701

ART

1

49,950

55,413

90.1%

5,463

2,692

------

------

520301

BACC

5

84,418

86,165

98.0%

8,735

------

------

------

260101

BIOL

3

49,917

58,695

85.0%

26,334

17,530

8,726

------

520101

BMGT

2

83,758

80,687

103.8%

------

------

------

------

521401

BMKT

2

90,949

82,464

110.3%

------

------

------

------

400501

CHEM

1

47,050

60,445

77.8%

13,395

10,373

7,351

4,328

90101

COMM

3

47,557

57,210

83.1%

28,959

20,378

11,796

3,215

110701

CPSC

1

70,314

78,472

89.6%

8,158

4,234

311

------

430101

CRMJ

1

54,824

58,616

93.5%

3,792

861

------

------

450601

ECON

1

57,750

72,504

79.7%

14,754

11,129

7,504

3,878

130000

EDUC

6

51,873

61,607

84.2%

58,404

39,922

21,440

2,958

310505

EHLS

3

51,781

58,402

88.7%

19,863

11,103

2,342

------

230101

ENGL

3

50,989

55,151

92.5%

12,486

4,213

------

------

110701

ENGR

7

70,112

76,421

91.7%

44,163

17,416

------

------

30102

ESC

1

50,808

64,212

79.1%

13,404

10,193

6,983

3,772

160101

FORL

2

52,933

57,414

92.2%

8,962

3,221

------

------

400601

GEOL

1

53,272

61,079

87.2%

7,807

4,753

1,699

------

190101

HECO

3

51,781

55,445

93.4%

10,992

2,675

------

------

270101

MATH

4

51,142

59,825

85.5%

34,732

22,767

10,802

------

500901

MUS

2

48,853

54,071

90.3%

10,436

5,029

------

------

511601

NURS

7

62,614

61,928

101.1%

------

------

------

------

389999

PHIL

1

49,450

58,866

84.0%

9,416

6,473

3,529

586

512308

PHYT

2

78,334

67,988

115.2%

------

------

------

------

451001

POLS

1

55,150

59,395

92.9%

4,245

1,275

------

------

499999

SOC

3

49,472

58,081

85.2%

25,827

17,115

8,403

------

440701

SOCW

1

55,423

61,005

90.8%

5,582

2,532

------

------

500501

THSP

2

49,150

55,202

89.0%

12,104

6,584

1,064

------

 

 

69

4,123,414

1,716,763

 

388,013

222,467

91,948

18,737

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec 04

 

 

 

 

 

Weighted Mean for UTC Assoc Professors

59,760

65,383

62,984

61,092

60,031

 

Weighted National Public Mean for  Assoc Professors

63,584

63,584

63,584

63,584

63,584

 

UTC Weighted Mean as Pct of National Mean*

94.0%

102.8%

99.1%

96.1%

94.4%

 

 

 

 

 

 

 

 

 

 

Average UTC Salaries by Rank and Discipline Compared to 2004-05 CUPA National Norms for All Public Universities

(NCB and CB Institutions Combined)

 

 

 

 

 

 

 

 

 

 

 

 

New UTC Salary =

 

 

 

 

 

 

 

 

%(National Ave) - (UTC Salary + Adjustments)

RANK: PROFESSOR

Adjustment = 0

 

 

 

 

 

 

 

 

 

 

% OF

$

$

$

$

 

 

 

UTC

NATIONAL

NATIONAL

to be 100%

to be 95%

to be 90%

to be 85%

CIP

UTC Dept.

Ave.

Ave. Pub.

Average

of National

of National

of National

of National

DISC

DEPT

N

Dec, 04

Univs.

Dec, 04

Average

Average

Average

Average

500701

ART

5

59,128

70,117

84.3%

54,945

37,416

19,887

2,357

520301

BACC

5

96,095

100,001

96.1%

19,530

------

------

------

260101

BIOL

4

64,645

78,830

82.0%

56,740

40,974

25,208

9,442

520101

BMGT

6

77,052

99,579

77.4%

135,162

105,288

75,415

45,541

521401

BMKT

4

96,390

98,381

98.0%

7,964

------

------

------

400501

CHEM

6

69,194

86,874

79.6%

106,080

80,018

53,956

27,893

90101

COMM

2

92,224

74,114

124.4%

------

------

------

------

110701

CPSC

3

76,736

95,122

80.7%

55,158

40,890

26,621

12,353

430101

CRMJ

2

61,453

74,141

82.9%

25,376

17,962

10,548

3,134

450601

ECON

5

74,234

95,767

77.5%

107,665

83,723

59,782

35,840

130000

EDUC

8

66,735

86,245

77.4%

156,080

121,582

87,084

52,586

310505

EHLS

4

63,893

72,503

88.1%

34,440

19,939

5,439

------

230101

ENGL

9

63,284

74,047

85.5%

96,867

63,546

30,225

------

110701

ENGR

11

84,518

102,453

82.5%

197,285

140,936

84,587

28,238

30102

ESC

1

62,426

84,905

73.5%

22,479

18,234

13,989

9,743

160101

FORL

3

63,475

81,022

78.3%

52,641

40,488

28,334

16,181

450801

HIST

4

66,003

78,492

84.1%

49,956

34,258

18,559

2,861

270101

MATH

7

63,415

82,534

76.8%

133,833

104,946

76,059

47,172

500901

MUS

7

62,066

69,823

88.9%

54,299

29,861

5,423

------

511601

NURS

2

68,710

77,270

88.9%

17,120

9,393

1,666

------

389999

PHIL

2

85,675

76,170

112.5%

------

------

------

------

400801

PHYS

3

60,882

89,596

68.0%

86,142

72,703

59,263

45,824

512308

PHYT

3

85,518

82,737

103.4%

------

------

------

------

451001

POLS

6

67,790

81,764

82.9%

83,844

59,315

34,786

10,256

420101

PSY

7

65,147

82,313

79.1%

120,162

91,352

62,543

33,733

499999

SOC

3

64,267

86,422

74.4%

66,465

53,502

40,538

27,575

500501

THSP

1

61,753

71,175

86.8%

9,422

5,863

2,305

------

 

 

123

8,755,692

2,252,397

 

1,749,655

1,272,188

822,214

410,730

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec 04

 

 

 

 

 

Weighted Mean for UTC Full Professors

71,184

85,409

81,527

77,869

74,524

 

Weighted National Public Mean for Full  Professors

83,422

83,422

83,422

83,422

83,422

 

UTC Weighted Mean as Pct of National Mean*

85.3%

102.4%

97.7%

93.3%

89.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% OF

$

$

$

$

 

 

 

UTC

NATIONAL

NATIONAL

to be 100%

to be 95%

to be 90%

to be 85%

 

 

 

Ave.

Ave. Pub.

Average

of National

of National

of National

of National

 

 

N

Dec, 04

Univs.

Dec, 04

Average

Average

Average

Average

Assistant

 

81

50,492

53,401

94.6%

284,779

140,814

40,019

8,729

Associate

69

59,760

63,584

94.0%

388,013

222,467

91,948

18,737

Professor

 

123

71,184

83,422

85.3%

1,749,655

1,272,188

822,214

410,730

 

 

 

 

 

 

 

 

 

 

Total Salary

273

62,157

66,802

93.0%

2,422,447

1,635,468

954,181

438,196

19% Fringe Benefits

 

 

 

460,265

310,739

181,294

83,257

 

 

 

 

 

 

 

 

 

 

TOTAL Salary and Fringe Benefit

 

 

2,882,712

1,946,207

1,135,476

521,453

Increase Required

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall % of National Average Dec. 04 with Different Adjustment Scenarios

 

 

 

Assistant

 

 

 

 

94.6%

101.1%

97.8%

95.5%

94.8%

Associate

 

 

 

94.0%

102.8%

99.1%

96.1%

94.4%

Professor

 

 

 

 

85.3%

102.4%

97.7%

93.3%

89.3%

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

93.0%

106.3%

102.0%

98.3%

95.4%