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State Budget Update – Employee Compensation

Posted on Tuesday, November 4th, 2014 under Budget News

The following message was e-mailed to the campus community on October 15, 2014. 

We’d like to provide an update on where we stand on employee compensation increases at UNCG, as a result of the 2014-15 state budget.

The 2014-15 state budget passed by the North Carolina General Assembly and signed into law by Governor McCrory in August includes a $1,000 salary increase for permanent, full-time SPA employees that was pro-rated for part-time employees. This salary increase was implemented at UNCG in the August payroll retroactive to July 1. An additional 40 hours of bonus leave for eligible full-time, leave-earning employees was included in the budget with a pro-rata amount for part-time, leave-earning employees. This compensation enhancement went into effect on September 1, 2014  and can be used as leave or paid out upon retirement or departure from UNCG.

The state budget also calls for $5 million for salary increases for EPA employees across the entire UNC System. The UNC Board of Governors has allocated $335,000 to UNCG, including benefits. With 1,500 faculty and non-faculty EPA employees, the distribution of this small pool of funds would not result in a significant across-the-board pay increase. Given UNCG’s recent enrollment declines and associated budget reductions, UNCG currently is not in a position to provide a salary increase to all full-time EPA employees.

Given this, we plan to distribute the limited funds allocated by UNC General Administration to instructional unit deans for the purpose of rewarding faculty members who do not earn leave. Under this plan, faculty members currently on nine- or ten-month contracts (and not eligible for leave pay), who are employed at UNCG on a full-time basis for at least three consecutive years and phased retirees, will be considered by their respective deans for a salary increase award. Chancellor Linda Brady and senior administrators met with the Budget Sounding Board, key Faculty Senate and Staff Senate leaders, deans and others to seek input on this proposal. Our nine- and ten-month faculty is the only employee group that did not receive an across-the-board salary increase of $1,000 or one week of bonus leave from the state. These increases will be targeted to address cases of internal salary inequity and salary compression. To be eligible for consideration, faculty must have received average or above evaluations over the past three years. The awards will appear in November paychecks, retroactive to Aug. 1, 2014.

We recognize the need to address the critical issues of merit, salary inequity and salary compression for all employees beyond what was included in the budget. We also recognize that distributing this small pool of available funds does not address all of our deserving EPA faculty and staff. Allocating the available EPA pool to the deans represents only a small, first step in addressing our compensation needs. We are committed to working to develop a long-term compensation plan, as well as identifying alternative revenue sources to ensure that UNCG can compensate our employees competitively as an employer of choice. We look forward to engaging all of our key stakeholders on campus in this crucial effort.

Sincerely,

Dana Dunn

Provost & Executive Vice Chancellor

Charles Maimone

Vice Chancellor, Business Affairs

 

Posted in Budget News.