15 March 2000

The 1999-2000 University Senate Budget Committee (David Frank, Mike Kellman, Nathan Tublitz and Wayne Westling) has generated three documents dealing with instructional faculty compensation. The first, entitled Basic Principles of Compensation for Instructional Faculty at the University of Oregon, describes the overarching set of principles to be used for all future disbursements of campus-wide salary improvement funds. The second document, The SBC White Paper: A Plan for Sustained Competitive Parity in Instructional Faculty Compensation, uses the principles in the Principles document as a foundation from which to discuss the goal of achieving and maintaining compensation parity with our comparator universities in the next 5-7 years. The White Paper also identifies 5 sources to fund the sustained competitive parity goal. The current document provides additional details regarding the implementation of the White Paper plan for the academic year 2000-2001. In this paper we: 1) identify the specific sources that will provide the funds to underwrite faculty salary increases in November 2000; 2) describe the distribution of these funds; and, 3) discuss how the entire process will be monitored.


The university has committed to a 5% average salary increase for instructional faculty to be distributed in November 2000. Using the White Paper figures of $0.55 million for every 1% increase for instructional faculty (based on information from the University Office of Resource Management), we estimate that $2.75 million is required to fund the first yearís salary increase. The White Paper has identified 5 potential funding sources apart from direct state support. These are: A) Reallocation of current funds to Instruction; B) Enrollment increases; C) Increased tuition; D) New endowment; and, E) Auxiliary enterprises (see White Paper for details on each source). Using data provided by the administration, funding for year 1 of the White paper plan (2000-2001) will come from the following sources:
Source A: Reallocation of current funds to instruction  
   Reallocation from Administration to Instruction $0.40 million
   Internal reallocation from schools and colleges $ 0.55 million 
Source E: Auxiliary enterprises   
   Athletics  $ 0.20 million
   Auxiliary funds that would have gone to Reserve $ 0.50 million 
   State appropriated general funds $ 1.10 million 
TOTAL $ 2.75 million 


     The fall 2000 raises will take effect in November, except that in the College of Arts and Sciences some preliminary merit raises announced in January and February will have gone into effect between February 15 and June 15. The November 2000 distribution of the 5% average salary increase shall follow the principles and goals set forth in the accompanying Principles and White Paper documents. Funds shall be distributed on the basis of both merit and cost of living adjustments (COLA). It is the expectation of the Senate Budget Committee and the administration that all satisfactorily performing faculty shall receive a salary increase from all sources (COLA and merit) that at minimum is equivalent to the cost of living increase. The following calculations shall be used when salary distributions are calculated.
A. Cost of living adjustment. The White Paper states that "With respect to COLA, a portion of every salary adjustment pool must be allocated to cost of living adjustments for all faculty performing satisfactorily". It further states that a full COLA shall be distributed if the total funds available in terms of percentage are greater or equal to 200% of the cost of living for the previous calendar year. However if the salary pool is less than 200% of the cost of living for that year, then half of the current salary increase will be allocated as a COLA.

Cost of living calculations were obtained from the US Bureau of Labor Statistics Portland-Salem OR-WA consumer price index. For the purposes of the November 2000 salary increases, the period used to determine changes in the cost of living was the 1999 calendar year (Jan-Dec), and for that year the Portland-Salem OR-WA CPI rose by 3.3%.

Since the salary pool of 5% is less than 200% of the cost of living for 1999, then half of the 5% salary pool (2.5%) shall be considered a COLA and shall be distributed to all faculty performing satisfactorily based on the White Paper principle discussed above.

B. Merit allocations. The remaining funds (2.5%) after the COLA disbursements shall be distributed on the basis of merit. Merit increases shall be based on performance using systematic principles and procedures adopted by each department/unit and shall be consistent with the goals set forth in the Principles document and White Paper. These include: 1) reaching the 95% sustained competitive parity goal; 2) addressing the compression issue; 3) redressing salary inequities; 4) ensuring that the vast majority of faculty receive significant increases; and 5) attaining the 80% minimum salary floor level.


The University administration, including the Provost's office and Deans, have agreed to strive towards the goal of sustained competitive parity described in the White Paper and to follow the Principles document when disbursing salary improvement funds. During the spring of 2000 each department or school will: For this first round of salary increases, it is understood that some units may not be able to fully comply with a-c above within the time frame imposed by d. In such cases Deans can provisionally approve such plans with the understanding that a-c will be completed and approved in the fall of 2000.

After salary decisions are made, each department will submit a written report to the appropriate Dean by December 15, 2000 demonstrating that the fall 2000 salary increases followed the written departmental procedures and were consistent with the Principles in the Principles document. Any deviation from these procedures and principles will have to be justified and accepted by the Provost, who will receive copies of the department reports from the Deans. In those schools without departments, a similar report will be submitted by the Dean to the Provost.

After receiving departmental salary increase information from the Deans, the administration will provide all relevant salary data to the Senate Budget Committee by January 15, 2001 and work closely with the SBC to develop an implementation plan for year 2 (2001-2002). The Senate Budget Committee will report to the University Senate on the progress towards the White Paper implementation plan for 2000-2001 as well as present an Implementation Plan for 2001-2002 no later than April 2001.

This document will be presented to the UO Senate at the 29 March 2000 meeting as resolution US9900-14 Related Web Pages:
  1. Statement of Principles
  2. Senate Budget Committee White Paper
  3. Implementation paper
  4. Home page of the Senate Budget Committee
  5. UO Senate Home Page
  6. The February 2000 University of Oregon Instructional Faculty Survey and banner tables - see also archival copy

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