2007/08 Support Budget

Budget Proposal: Compensation

2007/08 Compensation Increase, $82,788,000

It is essential that the CSU fund compensation that supports recruitment and retention of highly qualified and motivated faculty, staff, and management. The CSU 2007/08 Support Budget plan includes a 3 percent ($82.8 million) compensation increase for faculty and staff (non-faculty). The actual distribution of the compensation increase will be determined by negotiations between collective bargaining units and the Chancellorís Office. Nonrepresented employee salary increases are set by the chancellor. The following table shows the faculty and staff compensation components from which the CSU 2007/08 cost of a 1 percent salary increase and total 3 percent increase in compensation funding are derived:

Estimated 2007/08 Cost of 1 Percent Salary Increase

  2006/07
Final Budget
2006/07
Retirement
Adjustment
2006/07
Adjusted
Base
2007/08 Cost of
1 Percent
Salary Increase
Faculty        
Salary $1,151,450,000 $0 $1,151,450,000 $11,515,000
Retirement $183,564,000 12,148,000 195,712,000 1,957,000
Social Security 88,086,000 0 88,086,000 881,000
Subtotal $1,423,100,000 $12,148,000 $1,435,248,000 $14,353,000
Staff        
Salaries $1,076,333,000 $0 $1,076,333,000 $10,763,000
Retirement 160,253,000 11,136,000 171,389,000 1,714,000
Social Security 76,636,000 0 76,636,000 766,000
Subtotal $1,313,222,000 $11,136,000 $1,324,358,000 $13,243,000
Total $2,736,322,000 $23,284,000 $2,759,606,000  
Cost of 1%       $27,596,000
Cost of 3%       $82,788,000

The 2006/07 compensation base is comprised of salaries, retirement, and social security (OASDI and Medicare) budgeted by campuses. The 2006/07 compensation base has been adjusted for changes in employer-paid retirement rates ($23.3 million) that the California State Department of Finance processes after the start of the fiscal year.


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Budget Development
Chris Canfield
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Last Updated: January 26, 2007