2009/10 Support Budget II

Uses of Revenue

Salary Lag Compensation Funding

The CSU has a longstanding need to reduce salary lags for all CSU employees. Lack of funding for adequate compensation increases between 2001/02 and 2004/05 and in 2008/09 have largely contributed to ongoing compensation deficiencies for all CSU employee groups.

Although increases in budget funding afforded some relief to address faculty and staff compensation in fiscal years 2005/06 through 2007/08, the need to further address faculty and staff salary lags is compounded by the lack of state funding in 2008/09. The 2009/10 support budget request includes $78.8 million to address salary lags above the 3 percent compensation increase identified.

In 2009/10, the total planned compensation pool is 5.5 percent ($173.3 million) with the 3 percent ($94.5 million) general compensation increase for all employee groups and an estimated 2.5 percent ($78.8 million) to reduce faculty and staff salary lags. Actual compensation increases for represented employee groups are determined by collective bargaining agreements.

If the CSU is to successfully negotiate contracts in the years ahead, there are critical salary-related concerns within a number of CSU classifications that require special attention in the bargaining process.

With regard to faculty, the California Postsecondary Education Commission (CPEC) issues an annual report on faculty salaries at 20 comparison higher education institutions. In fiscal year 2008/09, the CPEC-projected faculty salary lag is 18.5 percent. After adjustment for a minor contractual compensation increase in 2008/09, the unfunded faculty salary lag is 18.06 percent.

CSU Faculty Salary Lag History

Fiscal
Year
CPEC Projected Faculty Salary Lag CSU Compensation Increase
(Final Budget)
CSU Compensation Increase
(Per Labor Agreement)
Projected Unfunded Faculty Salary Lag
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% 5.02%1 13.0%
2007/08 19.1% 5.53% 6.21%* 12.9%
2008/09 18.5% 0.44% 0.44%* 18.6%

*The 2008/09 .44% increase was not subject to reopening, and a 2007/08, June 30, 2008, 2% increase (embedded within the 6.21% increase shown) was also implemented in 2008/09.

In addition, the CSU Human Resources 2008/09 staff market analyses indicate that many classifications including physicians, health care support, and various technical and administrative support groups have double-digit salary lags. The CSU is making a concerted effort to address the salary inequities in these employee groups.

CSU Non-Faculty Compensation Pool History (Final Budget)

Year Percentage
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 4.13%  (avg.)
2007/08 5.27%  (avg.)
2008/09 0.00%