2007/08 Support Budget

Budget Proposal: Compensation

2007/08 Salary Lag Compensation Funding, $46,692,000

The CSU developed a five-year strategic plan beginning in 2006/07 to reduce the faculty and staff salary lags to zero. The 2006/07 final budget included a .64 percent compensation pool to address faculty and staff salary lags in addition to the 3 percent budgeted compensation increase pool for all employee groups. Actual distribution of compensation increases are determined by individual collective bargaining agreements negotiated with represented employee groups. In 2007/08 the CSU will continue to address faculty and staff salary lags with budget funding of $46,692,000. This level of budget support represents an estimated 1.7 percent compensation increase pool and will be in addition to the 3 percent ($82.8 million) general compensation increase for all employee groups.

The multiyear plan to address the salary lag is described in more detail in the Budget Challenges section.

Salary Lag and CSU Compensation Funding

The California Postsecondary Education Commission (CPEC) issues a report annually on faculty salaries at California public universities to the Department of Finance and the Office of the Legislative Analyst. In fiscal year 2006/07 the CPEC-projected faculty salary lag is 18 percent. After adjustment for the proposed 2006/07 compensation increase, the unfunded faculty salary lag will be 14 percent. The table below provides information on the CSU’s faculty salary lag history from 1997/98 through 2006/07:

Fiscal
Year
CPEC Projected Faculty Salary Lag CSU Compensation Increase
(Final Budget)
CSU Compensation Increase
(Per Labor Agreement)
Projected Unfunded Faculty Salary Lag
1997/98 10.8% 4.0% 4.0% 6.8%
1998/99 11.2% 5.7% 5.7% 5.5%
1999/00 11.1% 6.0% 6.0% 5.1%
2000/01 8.9% 6.0% 6.0% 2.9%
2001/02 7.9% 2.0% 3.18% 4.7%
2002/03 10.6% 1.5% 2.97% 7.6%
2003/04 11.6% 0.0% 0.8% 10.8%
2004/05 12.7% 0.0% 0.0% 12.7%
2005/06 16.8% 3.5% 3.5% 13.3%
2006/07 18.0% 3.7% 4.0%1 14.0%
1CSU Current Proposal

Further, there are critical salary-related concerns within a number of CSU classifications that require special attention in the bargaining process if the CSU is to successfully reduce staff salary lags and retain key staff at all levels. The 2006 CSU staff market study conducted by CSU Human Resources indicates significant lags in employee classifications such as public safety, physicians, nurses, and various technical support groups. The CPEC report on executive compensation indicates that CSU presidents have a salary lag of over 42 percent compared with their counterparts at comparison institutions. The 2006/07 estimated salary lags for various CSU employee groups range from 1 percent to 42 percent.

Following are historical compensation settlements for non-faculty employee groups over the past 10years:

Compensation Increase Pool for Non-Faculty (Final Budget)

1996/97 4.00%
1997/98 4.00%
1998/99 5.00%
1999/00 4.00%
2000/01 6.00%
2001/02 2.00%
2002/03 1.68%
2003/04 0.00%
2004/05 0.00%
2005/06 3.50%
2006/07 3.64%  (avg.)


Content Contact:
Budget Development
Chris Canfield
(562) 951-4560
Technical Contact:
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Last Updated: January 26, 2007