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NEWS & VIEWS: FROM THE CHANCELLORPrevious Message | Home | Next Message Budget for the New Fiscal YearJuly 25, 2007 In almost every respect, the year just ended was another very good year for the University of Pittsburgh. When the “books are closed” for the year, we expect to see significant increases in student applications, research grants, and private fundraising, to give three key examples. Though less easily measured, the year also was characterized by an ongoing record of achievement by alumni, faculty, staff, and students that should be a source of both pride and inspiration. Unfortunately, the message in terms of Commonwealth support is not nearly so positive. At the end of a long and difficult process, Pennsylvania’s state-related universities received increases to their appropriations of about 2 percent. This not only is less than the general rate of inflation but is markedly less than the increase in the higher education price index. Two contextual observations shared when our own operating budget for the fiscal year was formally approved last Friday seem worth repeating:
It might fairly be said, in terms of state support, that we never have recovered from the cuts and freezes imposed in the earlier years of this decade. Certainly, by any fair measure, the purchasing power of our appropriation has declined significantly since fiscal year 2001. Recognizing that a 2 percent increase to our state appropriation was the most likely final result, the University Planning and Budgeting Committee (UPBC) recommended that the University’s fiscal year 2008 operating budget include a salary increase pool of 3 percent. The UPBC also recommended that the pool be divided as follows: 1.5 percent for salary maintenance increases for all employees whose work performance had been rated to be at least satisfactory; 1 percent for merit, market, and equity adjustments to be made at the unit level; and 0.5 percent to be distributed by senior officers to address market imbalances that continue to exist between various units of the University. In terms of salary distribution, the UPBC further expressed its hope that, if the Commonwealth appropriation were to rise above 2 percent, there could be further consideration given to the cost-of-living component of the salary increase pool. The University Senate Budget Policies Committee concurred with each of these recommendations. Aside from an increase to a line item supporting rural education outreach, which would have no impact on funds available for a salary increase pool, our Commonwealth appropriation did not rise as the governor’s recommendation moved through the legislature. Nonetheless, because of a successful debt refinancing that was concluded in June, we did find ourselves in a position to invest further in the salary increase pool, raising its level to 3.5 percent in the proposed budget that was presented to and approved by the Board of Trustees last Friday. Building on the UPBC recommendation, with which I agree, I am allocating that added 0.5 percent to the cost-of-living component. Therefore, the fiscal year 2008 operating budget’s 3.5 percent salary increase pool will be distributed as follows: 2 percent for salary maintenance increases for all employees whose work performance has been rated to be at least satisfactory; 1 percent for merit, market, and equity adjustments to be made at the unit level; and 0.5 percent to be distributed by senior officers to address market imbalances that exist between various units of the University. For continuing members of the faculty and staff, any increases awarded will be retroactive to July 1 and will first appear in September paychecks. Let me close by extending my thanks to each of you for all that you did to make the past year such a good one at Pitt, as well as my best wishes for the remaining weeks of summer. |
From the ChancellorFiscal 2009 Operating Budget United Way Campaign Welcome to a New Academic Year! Budget for the New Fiscal Year |