2009/10 Support Budget I

Additional One Percent Compensation, $31.5 Million

Total compensation packages are critical to support the recruitment and retention of highly qualified and motivated faculty, staff, and management. The inability of the university to offer compensation increases that keep pace with the annual rise in inflation or increases within the state and national marketplace erode the CSU's ability to attract and retain a highly motivated and qualified workforce.

While increases in budget funding afforded some relief to address faculty and staff compensation in 2005/06 through 2007/08 after receiving inadequate funding for compensation increases in the preceding few years, the need to further address faculty and staff compensation is compounded due to the absence of any new funding from the state in the 2008/09 fiscal year.

There are also critical salary-related concerns within a number of CSU classifications that require special attention in the bargaining process if the CSU is to successfully negotiate contracts in the years ahead. With regard to CSU faculty, the 2008/09 projected unfunded salary lag is 18.5 percent, based on the California Postsecondary Education Commission's (CPEC) 20 comparison institutions. Based on 2008 Human Resources staff market analyses, many employee groups have double-digit salary lags that include physician, health care support, and various technical and administrative support groups.

The persistent salary lags have contributed to the university's challenges to retain and recruit critical faculty and staff and could impact the ability of the CSU to meet educational and business operational goals and requirements. This supplemental funding request of $31.5 million would further help the CSU address the impact of minimal compensation funding in prior years on all CSU employee groups.