Wednesday, march 29, 1978
daily nebraskan
page 1 1
Exon offers a 'tight but adequate9 pay hike proposal
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Photo by Ted Kirk
Gov. J. James Exon said he supports an increase in faculty salaries in his NU bud
get recommendation.
Committee recommendation
awaits legislature's OK
By Margaret Stafford
Money for a 6.5 percent increase for NU
faculty and staff salaries would be available
to the NU Board of Regents if the Ne
braska Legislature accepts the Appropria
tions Committee's recommendations.
The committee's recommended budget
for the three campuses is $107.7 million.
The proposal includes a 6.5 percent boost
for personal services, which includes
faculty salaries. The university administra
tion had requested an increase of 9 percent
for faculty and 7 percent for other staff
members.
Sen. Jerome Warner of Waverly, com
mittee chairman, said the recommendation
"in no way means faculty salaries will in
crease 6.5 percent.
"Because of the Supreme Court ruling,"
he said, "the only thing we have control
over is the general fund. The Board of
Regents has total discretion over using that
money."
The Supreme Court ruled that the
regents, not the Legislature, has complete
responsibility in distributing funds on
campus. The Legislature only controls the
Warner explained that the committee's
6.5 percent increase means that general
funds are increased 6.5 percent. The
regents can add any funds to adjust the
salaries as they see fit, Warner said.
He noted that the Legislature's con
siderations make no specific reference to
faculty salaries.
Warner said the increase could be used
to fill faculty vacancies or to raise salaries.
He said regents make adjustments in July
and January without Legislative direction.
"The regents can use anything from
vacancies to teaching assistant salaries in
determining how to spend the increase
we've recommended."
Warner said the committee did not
recommend a lump sum appropriation be
cause the Legislature traditionally had
allocated money by campus or by program.
He said most senators want to know where
money is going when they vote on alloca
tion. "But in the end the faculty salaries are
up to the regents," Warner said. "We affect
their decision by limiting the amount of
money they have to work with, but we
By Kale Gaul
Gov. J. James Exon said a lump sum
allocation would provide the NU Board of
Regents with "flexibility" to distribute
state allocations "where they see fit."
Calling his $107.7 million NU budget
recommendation "tight but adequate,"
Exon said regents should know best what
NU needs.
The regents have the ability to shift
funds and they can raise faculty salaries
without cutting into existing programs and
without raising tuition rates, he said.
"Faculty salaries should take preceden
ce over programs," Exon said. "The role of
a university is, first, to be a learning in
stitution, and you must have good
teachers."
"Higher salaries generally bring higher
quality instructors," Exon said. He called
the quality of instruction at NU "good."
Professors who leave NU often do so for
a position of higher prestige, but "lateral
transfers"-same job title but higher pay
indicate that a university is not paying in
structors adequately.
"By nature and profession, instructors
move on. We lose lots of good people for
various reasons. One might be that we are
are not compensating them properly,"
Exon said.
In preparing his budget recommenda
tion, Exon said that he reviewed the detail
ed work that his budget staff compiled.
A Department of Administrative Ser
vices budget analyst and several assistants
work full-time to prepare the NU budget.
Exon said his NU budget staff consults
with NU administrators, including Presi
dent Roskens and his staff, department
heads and sometimes faculty.
Exon said that to compile the budget,
they use "straight business budgeting tech
niques." Last year's appropriations and revenue
are compared and many measures includ
ing inflation are considered before his
budget recommendation is made.
He said he is criticized for cutting NU's
budget recommendation but ' that steady
raises in state funding for NU go unnotic
ed. According to a written explanation
accompanying Exon's budget message, he
said the state general fund support has in
creased 1 70 percent since 1969.
"State tax support for the university has
risen from $37.5 million in fiscal year
1969-1970 to $101 million in fiscal year
1977-78," the report continued.
Exon said that students already pay 20
percent of the cost of education, which he
claimed is high enough.
Exon did not account for a tuition raise
in his budget proposal.
His budget report said UNL tuition, stu
dent fees and residence hall rates are the
second highest among the Big Eight
schools.
"At the same time that Nebraska tax
payers are providing significant tax support
to the university and students are provid
ing a high level of support through tuition
some institutions in the Big Eight," the re
port continued.
Exon's report said that according to uni
versity information, NU faculty salaries
rank in the bottom half of the Big Eight
schools.
In the report, Exon suggested that
"alternative policies must be explored to
help solve faculty problems," because of
the already high level of support from the
students and taxes.
Exon said that if faculty salaries are the
regents' top priority, then they have the
money to re-allocate funds within the uni
versity to provide for the increase.
Exon's budget allows for a 6.5 percent
increase in faculty salaries, However, the
regents want a 9 percent increase in faculty
salaries and a 7 percent increase in other
staff salaries.
David Wagaman, executive management
analyst for the Department of Administra
tive Services, said NU can accomplish its
salary goals with the money the governor
has allocated.
Wagaman said that it would cost $1.2
million to raise the salary increase per
centage from 6 to 9 percent.
He said that the University Medical Cen
ter has at least a $1.5 million surplus from
its cash fund. The surplus resulted because
of over-allocation from past general funds
and from more effective revenue-generating
programs, he said.
Wagaman said that increases over last
year's budget expenditures are figured on
projected need, and that salary raises and
inflation are taken into account.
Throughout the budget NU has an
excess and if NU does not need it in one
department, the excess should be used in
another area, Wagaman said.
Exon said staff increases 4,770 since
1969, are not in line with enrollment in
creases. Enrollment has not increased since 1969
to justify staff additions, he claimed.
Exon's budget explanation said NU in
creased total employment by about 825
positions over last year. About 325 more
positions were budgeted by NU for 1977
1978 period than were requested. NU's
estimated revenue source budget was about
$6.5 million less than was requested for
that time.
"The University has the managerial
flexibility to pursue this policy of expan
sion. However, if the university's number
one priority is in fact faculty salaries, re
allocation of positions and resources within
the total university sustem is going to have
to take precedence over continued expans
ion of all programs," the report said.
NU must be accountable for its expendi
tures, Exon said.
Exon also said that construction of new
buildings is not necessary. His budget
allows for maintenance of existing build
ings and continued funding for works in
progress.
"Some measure the success of a univer
sity by the number of buildings, but
the real measure is the quality of that in
stitution measured with other universities
campus. Ine Legislature only controls the money they have to work with, but we mg a nigh level ot support tnrougn tuition stitution measured with other u
amount of money UNL receives. cannot determine the adjustment." and fees, faculty salaries are lagging behind of that type," Exon said.
Force questions 12-month appointment signifiance
By John Ortmann sion activities which go on all year. ments do not alwayd reflect total salaries. jn relation to nine month salaries.
According to Extension Service Dean He said payment for summer sessions and The current factor is 818
Equity, the principle that all salaries
within an institution are determined by a
common standard, is in question at UNL.
UNL has two basic teaching appoint
ment periods; a nine-month "academic
appointment" and a 12-month "full-year
appointment."
The issue of equity between the salaries
of 9- and 12-mortfh appointment periods is
university-wide, according to Martin
Massengale, vice chancellor for the
Institute of Agriculture and Natural Re
sources (IANR).
However, at times it has taken on the
appearance of being an IANR problem.
According to figures on file in UNL
Chancellor Roy Young's office, there are
571 12-month full-time equivalent posi
tions at UNL, about 500 of which are filled
by IANR personnel, UNL libraries, College
of Dentistry, and administration personnel
account for most of the rest of the total.
Alan Moeller, a financial and personnel
assistant to Massengale, said IANR person
nel are hired on a year-round basis because
they are involved in research and exten
Leo Lucas, a member of a task force to
study equity recently established by
Young, personnel on nine-month appoint
ments receive 18 percent of their regular
yearly salary in addition to their salary for
teaching six hours in a five-week summer
session.
Because those on 12-month appoint
ments receive 24 days of vacation a year,
they are paid on the basis of a nine-month
appointment plus two months, Lucas said.
He explained that those on 12-month
appointments then receive eleven and one
quarter percent of a nine-month appoint
ment salary for each of the two additional
months they work each year.
Because the 18 percent addition works
out to 14.4 percent a month, Lucas said,
the task force was cieated to study the
difference. However, Lucas stated that he
believes those on 12-month appointments
should receive at least 14.4 percent of their
mine-month equivalent wages for each of
the two additional months.
Lucas also noted that reported salary
figures for those on nine-month appoint
night classes taught for the Division of
Continuing Education are not included.
Alan Seagren, director of Summer Ses
sions agrees, however, he explained that
those on nine-month appointments have no
guarantee of summer employment.
John Buskey, assistant dean of Continu
ing Education, confirmed that salaries for
night classes are not included in salary
reports. He said personnel on both nine
and 12-month appointments may teach
night classes, however, most are taught by
personnel on nine-month appointments.
Another issue is the conversion factor
now used to show nine and 1 2-month salar
ies as equivalent. Animal Science Professor
Ernest Peo, a member of both the Chancel
lor's task force and the IANR Liaison Com
mittee, which also has dealt with the quest
ion, said the conversion factor is mislead
ing. Peo, who emphasized he was speaking as
an individual and not as a member of either
group, said the factor now in use makes 1 2
month salaries appear higher than they are
in relation to nine month salaries.
The current factor is .818. which is
arrived at by dividing nine by 1 1 months,
tne length ot time othcial policy maintains
those on 12 month appointments actually
work. Peo said a factor of .75, arrived at by
dividing nine by a full 12 months, would
be more realistic.
He gave the following example: a person
making $20,000 a year on a 12-month
salary is now considered to be paid at the
same rate as a person making $16,360 for
nine-months, using .818 as a conversion
factor. Using .75 as the factor, the $20,000
is only equal to a $15,000 nine-month
salary.
Peo said .75 should be adopted in the
interest of accurate conversion, but added
that it could be used for salary adjustments
in the future.
Massengale said the issue was controver
sial, but that he supported the idea of
equal payment for summer work.
"Anytime you deal with personnel
issues it becomes a bit more sensitive than
an abstract issue, because it might affect
people," he said. "But I feel there should
be equal pay for equal work."