2009/10 Support Budget II

Uses of Revenue

Compensation, $173.3 Million

Compensation Increases, 3% For All Employee Groups, $94.5 Million

It is essential that the CSU fund compensation that supports recruitment and retention of highly qualified and motivated faculty, staff, and management. The 2009/10 Support Budget plan includes a 3 percent compensation increase for faculty and staff. The actual distribution of the compensation increase will be determined by negotiations between collective bargaining units and the Chancellor's Office. Non-represented employee salary increases are set by the chancellor.

The following table shows the faculty and staff compensation components from which the 2009/10 cost of a 1 percent salary increase and total 3 percent increase in compensation funding are derived:

Estimated 2009/2010 Cost of 1 Percent Salary Increase

  2008/09
Final Budget
2008/09
Retirement
Adjustment
1
2008/09
Adjusted
Base
2009/10 Cost of
1 Percent
Salary
Faculty        
Salary $1,309,189,000   $1,309,189,000 $13,092,000
Retirement 212,066,000 (772,000) 211,293,000 2,113,000
Social Security 96,225,000   96,225,000 962,000
Total $1,617,480,000 ($772,000) $1,616,707,000 $16,167,000
Staff        
Salaries $1,250,617,000   $1,250,617,000 $12,506,000
Retirement 194,485,000 ($578,000) 193,907,000 1,939,000
Social Security 90,207,000   90,207,000 902,000
Total $1,535,309,000 ($578,000) $1,534,731,000 $15,347,000
Cost of 1% $3,152,789,000 ($1,350,000) $3,151,438,000 $31,514,000
Cost of 3%       $94,542,000

1 2008/09 Member Categories, State Miscellaneous-Tier 1 decreased from 16.633% to 16.574% (-.059%) and State Peace Officer/ Firefighter increased from 25.552% to 26.064% (0.512%).

The 2008/09 compensation base is comprised of salaries, retirement, and social security (OASDI and Medicare) budgeted by campuses. The 2008/09 compensation base has been adjusted for changes in employer-paid retirement rates (-$1.35 million) that will be processed by the California Department of Finance during 2008/09.