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The N.C. General Assembly passed a state budget on time for the second
year in a row, with Gov. Jim Hunt signing the $14 billion spending plan for
2000-01 into law June 30.
Most notably for University SPA employees, the budget includes up to a 4.2
percent pay raise plus a $500 bonus for all permanent employees who joined the
University on or before April 1, 2000, and will be employed here at least
through Oct. 1, 2000. (See box at bottom for details.)
The legislature approved a 4.2 percent increase in funds for faculty and
non-faculty EPA employees, with the method of distribution to be determined by
the UNC Board of Governors.
Raises for SPA employees will take effect with July 28 paychecks; the $500
bonus will come in October. EPA employees most likely will not see more in
their pay until September, with increases retroactive to July 1.
Legislators created a State Employees' Reserve and funded it with more than $50
million to head off predicted budget shortfalls in the State Health Plan. The
infusion comes from a surplus in the state retirement system.
That means premiums for the plan won't rise for 2000-01, and employees'
out-of-pocket costs will remain the same: nothing for employee-only coverage,
$117.16 for employee/children's coverage and $281.04 for employee/family
coverage.
The approved budget includes tuition increases at Carolina that were part of a
Board of Governors proposal to fund salary increases across the UNC system. A
central piece of the tuition increases at Carolina will be a $600 hike over two
years for undergraduate and graduate students, with $300 coming in 2000-01 and
$300 in 2001-02. This increase won't affect professional students.
According to Kate McGaughey, former associate provost, increases at Carolina
are expected to generate $6.3 million in the first year, and 35 percent of that
will go to financial aid to maintain access for lower-income students. Another
slice will go to cover fringe benefits, leaving $3.4 million to boost faculty
and librarians' salaries in 2000-01.
A special committee, chaired by retired Provost Richard "Dick" Richardson,
determined to allocate the $3.4 million to Carolina schools based on a formula
using comparison data from peer universities.
McGaughey said funds will go to those schools who showed their salaries were
dramatically behind their peers. Allocations to individual faculty members will
be determined by the dean and/or department chair within that school. Raises
will be included in the usual faculty pay increase process.
McGaughey said any school that had submitted a separate tuition proposal (law,
business, and journalism and mass communication) will not receive funding from
this
campuswide tuition increase but would receive funds generated under their
school's proposals.
The Board of Governors proposal also calls for the legislature to put $28
million in state funds toward faculty salary increases to help close the gap
with salary levels at peer institutions. The $28 million would come over two
years beginning in 2001-02.
The General Assembly decided to have its Joint Legislative Education Oversight
Committee take up the matter in a study that will gauge the need for an
"Excellent Universities and Community Colleges Act." That panel will make
recommendations to the 2001 legislative session, which starts in January
2001.
Legislators did allocate $5 million in 2000-01 for financial aid across the UNC
system.
As for expansion dollars for Carolina, the state budget includes: $7.57 million
for regular-term enrollment changes; $1.33 million for distance education
enrollment changes; $60,000 for the Institute of Outdoor Drama; and $225,000
for the Program on Southern Politics, Media, and Public Life.
But the spending plan excluded funding for two multi-million-dollar requests
from Carolina to expand its public service efforts: $5.6 million for a
genomics/bioinformatics initiative and $3 million for the Area Health Education
Center program.
Pay increases in detail
For SPA:
* 2.2 percent cost-of-living increase for all employees.
* 2 percent within-grade, career-growth increase for employees getting a
performance rating of GOOD or better. Note: Employees within 2 percent of the
maximum of their salary grade, or at the maximum of their salary grade and who
have a GOOD performance rating or better, will receive whatever part of the 2
percent career growth increase that will take them to the maximum of their
salary range, and the remainder of the 2 percent increase will be paid to them
as a non-recurring, one time bonus.
* A one-time, non-recurring bonus of $500 to be paid in October 2000 -- an
employee must have been employed no later than April 1, 2000, and must still be
employed on Oct. 1, 2000, to be eligible.
For faculty and EPA non-faculty:
* 4.2 percent increase in funds for salaries, with the method of
distribution to be determined by the UNC Board of Governors.
* Non-professional school faculty whose salaries now most trail their peers at
other universities will get additional raises through funds generated by
tuition increases. Individual allocations will be decided by deans and/or
department chairs.
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