TABLE OF CONTENTS  |  FRONT PAGE  |  NEXT ARTICLE |  UNC HOMEPAGE

Pay raises may be on the way


State employee pay raises of as much as 5 percent for next year are being discussed by the N.C. General Assembly.

And chances are good that tuition funds to boost faculty salaries also will be approved by the legislature in its short session, now under way in Raleigh.

That's the word from two local legislators.

N.C. Gov. Jim Hunt's 2000-01 budget proposal calls for state employees to get a 3 percent pay raise. But raises could be more than that, according to Rep. Verla Insko, a House Democrat whose district includes Orange County.

"Leadership in both the House and the Senate are trying to do better than the 3 percent recommended by the governor," Insko said June 6. She chairs the House Committee on State Personnel.

One proposal would increase salaries by 5 percent, raise the multiplier in the retirement formula from 1.80 to 1.81 and create a new 401K option whereby the state -- at least in the first year -- would contribute $1,000 to each employee's fund.

"Except for the truly miserly increase in the multiplier, this is a better proposal than state employees have seen in a long time," Insko said.

Insko said legislative leaders have proposed that the money to fund such a move come from a surplus in the state retirement system.

But she added that the package "may be too good to be true because other less generous proposals are emerging."

One such proposal is to give state employees a 4 percent increase and look at the other options next year, Insko said.

Regardless of what proposal is approved, she said, state employees should insist that any excess money in the state retirement system be used to benefit employees.

"These funds should not be put back into the General Fund for other state expenditures," Insko said.

As for faculty, the state senator who represents Orange County said approval is likely for tuition increases included in a UNC Board of Governors proposal to fund salary increases across the UNC system.

"So far, no one has raised any objections," Howard Lee said June 6. A Democrat, Lee co-chairs the Senate Appropriations on Education/Higher Education Committee.

A central piece of the tuition increases at Carolina would be a $600 hike over two years for undergraduate students, with $300 coming in 2000-01 and $300 in 2001-02.

Carolina administrators have said that revenue generated by tuition increases would not necessarily go to across-the-board raises for University faculty members but rather could go to faculty whose pay is most behind their peers at other universities. About one third of the generated tuition revenue would go toward student financial aid.

The Board of Governors proposal also calls for the legislature to pass an "Excellent University Act" that would put $28 million in state funds toward faculty salary increases. The $28 million would come over two years beginning in 2001-02.

Lee said that lawmakers likely will propose that this go to the General Assembly's Education Oversight Committee. That panel would decide whether the Excellent University Act should be included on the agenda of the next legislative session, which starts in January 2001.

Lee said any efforts using state funds to bolster faculty pay at UNC system schools will have to be done in concert with raising North Carolina community college instructors' salaries, now among the lowest in the country.

"We need to raise both these boats at the same time," Lee said.

While the Board of Governors proposal calls for the state to allocate $36.8 million for student financial aid, Lee said only some $5 million to $6 million is likely for 2000-01.

He said legislators will try to get that amount closer to the Board of Governors request.

"We'll keep chipping at it over a period of two to three years," he said.

According to Insko, House and Senate leaders are aiming for the legislature to pass a 2000-01 budget by June 29.

"Although that may be too optimistic, we are on track for that date so far," she said.


TABLE OF CONTENTS  |  FRONT PAGE  |  NEXT ARTICLE |  UNC HOMEPAGE