1, June 2007 (Via E-Mail Only)
DRAFT #4
BUDGET SUBMISSION DUE DATE Large Schools & Colleges
(A-07, A-17, A-19, A-34, A-40, A-48, A-53, A-55, A-87)
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Other Budget Units
MEMORANDUM TO: FROM: SUBJ: Deans and Directors Darrell Bazzell The 2007-08 Unclassified Compensation Plan - Phase II
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Attached to this memorandum you will find Chapter 5 of the annual budget instructions, which provides detailed guidelines for implementation of the 2007-08 unclassified compensation plan, as well as several other documents which will provide further guidance for this phase of the budget process. It is anticipated that the compensation plan that will be proposed by the Office of State Employment Relations (OSER) will provide authority to increase annualized salaries for 2007-08 by an amount equal to X.XX percent of the salaries of all continuing unclassified staff. However, the Joint Committee on Employment Relations (JCOER) has not yet scheduled a meeting to act on a compensation plan. We are hopeful that they will meet in June and approve the X.XX percent level. Consequently, we want to move ahead with finalizing this last phase of the budget process by establishing salary increases that we believe will be consistent with the anticipated OSER plan. If modifications to the plan are later required, we will provide additional instructions at that time. We are assuming that faculty and academic staff minima and Category A maxima will be increased by approximately X.XX percent over the levels that were effective for 2006-07. All budgeted and nonbudgeted positions must be at or above these new minima. If an unclassified staff member's current full-time rate is below the 2007-08 minimum, the salary must be at least increased to the new minimum with merit funds. The salary minima for Research Associates and Research Interns have also been increased by approximately X.XX % for 2007-08. You should bear in mind the following institutional policies regarding merit distribution. The Faculty Senate, with the full support of the Chancellor, Provost, and Deans, has established the policy that "Colleges, schools, departments, and programs, as appropriate to their respective missions, should allocate at least 20% of the annual merit pool to reward excellence in teaching (Faculty Document 976a dated February 1, 1993). In addition, each college should allocate a portion of the Dean's special merit pool to faculty members who have maintained a record of teaching excellence." You do not have to account, by individual, how much of this total amount each received; however, at the end of the merit process you may need to be able to identify those faculty and instructional academic staff whose performance award significantly reflects teaching excellence.
Vice Chancellor for Administration University of Wisconsin-Madison 500 Lincoln Drive Madison, Wisconsin 53706-1380 608/262-9943 FAX: [phone]
100 Bascom Hall
Budget Officers June 1, 2007 Page 2
The Board of Regents adopted a resolution which includes a guideline that solid performers should receive not less than one-third of the total compensation plan. This does not imply or require an acrossthe-board increase for each individual who receives a "satisfactory" assessment. Rather it reflects a policy that those individuals who have made positive, but not necessarily exceptional, contributions should not be excluded from pay plan increases. This will ensure that exceptional performers are not rewarded exclusively at the expense of the solid performers. This requirement applies only to those who were employed long enough to have their performance fairly assessed. Those who cannot be fairly assessed are eligible for increases at the discretion of the department/division. The university has the authority to determine merit and assign increases without regard to fund, but you may not move compensation plan increase authority between the academic staff and faculty without prior approval and only in exceptional circumstances. In addition, average salary increase percentages for eligible men and eligible women must be approximately equal. This requirement pertains separately to both faculty and academic staff. Any variance requires the prior approval of the Academic Personnel Office. Chapter 5 provides detailed instructions for awarding the X.XX percent compensation plan increases for the unclassified staff. The primary limitation, as in previous years, is that the all-funds total of the compensation plan increases may not exceed X.XX percent of the continuing staff identified in the budget. Please note the merit requirements for appointments that have received a base salary adjustment. The requirements are listed in Chapter 5, Section II.F.3. The requirement for at least an average percent increase (X.XX%) includes all faculty promotions, academic staff promotions, market and individual equity adjustments. Merit of at least X.XX% is required for proposed major change in duties and group adjustments. equity As in past years, you may be required to submit a short narrative that provides justification for large pay plan increases. It is not necessary to submit that information with your budget material but adequate documentation should be kept in the Dean's office or at the department level. The unclassified staff detail (Form 2A) should reflect employee status as of July 1 (A pay basis) or the start of Semester I (C pay basis). Base salary changes, which are effective on or before July 1 (or Semester I), should be shown. Merit increases, proposed base adjustments, and faculty promotional adjustments will be automatically loaded into appointment system. (If the increase is already reflected in the appointment system, it will not be duplicated.) This load applies only to rate changes. It does not include title changes. Therefore, you will need to enter all title changes into the appointment system. The load of the pay plan increases to the appointment system is schedule to occur XXX XX. The changes will be copied to the payroll system and used for the XXXXXXXX check sheets for all appointments. Detailed information on the load to payroll and the projected XXXXXXXXX retroactive payments for annual pay basis appointments will be provided by Payroll Services. Faculty and academic staff should not be informed of their new rates until JOCER has approved the pay plan, the budget has been passed and the review of the proposed salaries has been completed by UW System and the Board of Regents. The release of that information is tentatively schedule for XXXX XX. The Academic Personnel Office will distribute sample salary notification letters and provide the official salary release date. If you have situations where you feel that it is important to inform an individual immediately of his or her proposed rate, or to make a multi-year commitment, discuss the matter with Steve Lund prior to talking with the individual. Please keep in mind that you must rebalance your budget submission for all GPR funds. The final budget submission by activity should be equal to your Phase I activity totals adjusted by the actual pay plan increase distributed to each activity. Other funds that have a specific allocation must be rebalanced to Phase I levels. These include Funds 128, 129, 131, 136, 165, 166, and 528. Rebalancing is not required for Funds 133, 144, and 161, as those adjustments will be handled at a campus level. Also keep in mind that the salary increase for 2007-08 cannot move a base salary above the UW System salary range maximum for the assigned title. In addition, unclassified staff who are currently paid above the UW System academic staff 2007-08 maximum for their assigned title and salary grade can receive a salary increase of X.XX% (half of the amount by which the salary ranges have been adjusted). This does not apply to appointments that are limited by an extraordinary salary range maximum.
Budget Officers June 1, 2007 Page 3
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