USU budget cuts are not likely for upcoming years
After two years without raises for university faculty and staff, President Stan Albrecht’s main goal in the upcoming Utah legislative session is to obtain more money to pay them.
“Discussions I’ve been having with legislators around the state, and with the governor’s budget advisers, suggest that we face significant challenges on that front,” Albrecht said, “but we’ll do the best we can.”
In 2006, University employees received a 3.5 percent raise, and in 2007, their increase was as high as 5 percent, Provost Raymond Coward said.
Last week, Albrecht sent an e-mail to all university employees expressing his thoughts, goals and feelings on the university’s financial situation. He provided an early assessment of the upcoming legislation and reviewed the the role state revenues play in the overall economic state of USU.
“I am worried about the slow pace of the economic recovery and what that means for Utah State University, our students, faculty and staff,” he said.
However, Albrecht said he remains optimistic.
“Even though it’s not over completely, we’ve gone through the worst of the recession,” he said.
One of the biggest problems that hit USU during the recession was budget cuts. These cuts led to the university having to cut jobs and find ways to save money. A mandatory furlough was set for the week of Spring Break in 2009, which saved money on salaries.
“We are not likely to have to make anymore cuts,” Albrecht said.
The money used to pay school employees comes from state tax money. Because of this, any increase in funding must be spread across all state employees.
In order to make the money needed to provide raises to employees, the state’s revenue base would have to grow by several percentage points just to meet mandated requirements in other areas as well, he said.
“Because of the serious uncertainty about the future of our state economy, the Utah System of Higher Education has not submitted a request to the legislature for a specific salary increase,” Coward said. “Rather, all of the presidents of public universities in Utah have made it clear that their first priority for the entire university is compensation increases for our faculty and staff. We are hopeful that it will not be another year of no raises.”
“Even if we see a positive increase in state revenue, it may not be at a level that will be sufficient for other critical needs like pay increases for state employees,” Albrecht said.
Coward works closely with Albrecht’s office in providing the best opportunities possible for the university. A large part of his job focuses on the financial status.
Employees’ salaries vary by rank and discipline, he said.
“Professors are paid more than assistant professors. Similarly, assistant professors in accounting are paid more than assistant professors in the humanities.”
On average, professors currently make $89,100. Associate professors average $69,100, and assistant professors make about $62,900, he said.
Going into this legislative session, there are other things university administration hopes to accomplish, Albrecht said. One of the big ones is to obtain operation and maintenance (O&M) funding for non-state funded buildings.
“When someone donates the money to build a new building, we still have to pay to maintain it,” he said. “The O&M fund is the way to do that.”
The university is also hoping to get support for new developments on campus including the new doctoral veterinary science program, the transition of the USU-CEU affiliation, and obtaining capital support for the remodel of the Fine Arts Building as well as the addition to the Business Building.
Those building renovations are just two of the many construction projects going on or are in the process of getting started.
Many students see these projects and think there are better ways the university could be spending money, Albrecht said.
“I think the university could better distribute their spending across other areas,” said Mary Stocking, a junior in public relations. “If they would distribute the money further, then our teachers wouldn’t have to take furloughs or pay cuts.”
However, that’s not how it works, Albrecht said. All the money the university has to work with is spread through different accounts. State law does not allow money be transferred from capital construction to compensation, or in any other combination.
“I would go to jail if I was spending employees’ salaries on these new buildings,” he said.
Many of the new buildings and construction projects are funded entirely through outside donations and gifts. When that is the case, the money must be used exactly how the donors want it to be used, he said.
The State of Utah has around a $310 million deficit to fill, a budget deficiency that first must be addressed before USU, or any state entities, can likely expect additional funding. There will also be mandated increases among other various state departments, he said, that will affect budgets.
“After that, we can start looking forward,” he said.
The legislative session will begin the third week of January, soon after Martin Luther King Day.
– megan.allen@aggiemail.usu.edu