Good afternoon UA Staff,
Without a final FY16 State of Alaska budget there are still many questions about the scope of reductions, future of compensation increases and overall level of operating funding available for the university this coming year. Whether or not the State includes funding for negotiated union contracts remains a major sticking point in the Senate. It is clear that funding for non-union employees is not being provided by the state, and strong intent language from the House Finance Committee condones funding compensation increases internally.
This leaves the university with limited options and difficult choices. Without State funds for compensation increases, (a 3.1% increase was proposed for staff, plus increases in union CBAs, for a total increase of more than $20 million for FY16) any increases would have to be covered by the university in the form of layoffs, reductions, increased revenue, or other means of balancing the budget.
As Staff Alliance Chair I will address the Board of Regents Thursday morning. This is an opportunity to express staff positions and concerns. I would like to be able to speak about compensation and know that I am representing staff. I do not know for certain what options administration may have when the Legislature passes the final FY16 budget, but the ones below seem most likely given the current budget situation.
Please click on the link below to take a brief survey indicating your preferences on the following scenarios as well as the opportunity to submit comments that could assist my testimony. Please take into consideration that the actions of the State in passing the final FY16 budget and any intent language they include will affect the university’s ability to consider any of these options.
SCENARIO ONE: No compensation increases for any university employees. Least impact on additional layoffs and/or funding reductions for departments and programs.
SCENARIO TWO: No compensation increases for non-union employees; union employees get the raises included in their CBAs. Funding the compensation increases will require finding additional money which could result in increased layoffs.
SCENARIO THREE: Everyone gets the planned compensation increases with the increased cost covered by additional layoffs, reductions, reorganizations, etc. This would result in the highest risk of additional layoffs and funding reductions to program and department budgets.
SCENARIO FOUR: Compensation increases are granted for non-union employees, but countered with equivalent furlough. This results in no change to income, and neutralizes the impact to the university, but base pay in the future will be adjusted appropriately. When the budget situation normalizes employees will be paid at a rate that reflects their service and inflation.
Thanks for your input on this matter!
Staff Alliance Chair
This anonymous survey is being conducted by the Staff Alliance to help gauge staff feelings regarding FY16 compensation. Responses will be collected via SurveyMonkey by the System Governance Office and shared internally with university HR directors, budget offices and leadership to help guide budgeting decisions, and should be considered a public record. Participation is optional.