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Do IT this week: Layering
By Carol Biliczky
Beacon Journal staff writer
POSTED: 09:10 p.m. EDT, Apr 29, 2009
About 3,800 employees at the University of Akron will not get raises in the coming academic year.
John Case, vice president of finance and administration, said UA is facing a projected budget deficit of $5 million to $10 million as it readies a balanced budget for the next fiscal year, which begins July 1.
Other tax-supported universities have taken similar steps to cut costs. Kent State is offering some employees up to one year of salary to leave; the University of Toledo is laying off 87 employees to eliminate a $16 million shortfall.
Many officials at tax-supported universities statewide have expressed concern about what will happen to the state subsidy for higher education in the state's next two-year budget.
Gov. Ted Strickland's proposed budget gives tax-supported colleges and universities an average of 6.5 percent more than they now receive in the first year in exchange for schools freezing undergraduate tuition. In the second year, they would not get an increase in the subsidy, but main campuses could raise tuition by 3.5 percent.
As proposed, UA would get 8.18 percent more next year over the $98 million it now receives, according to the Ohio Board of Regents. Kent State would get 3.32 percent more than the $105 million it receives, and Cleveland State, 1.28 percent more than the $75.8 million it receives.
The increases are based on performance standards developed by the individual universities. Case emphasized that those are only estimates and could change as the General Assembly approves the state budget.
In an e-mail to employees, Case said state support in the next biennium will be composed largely of one-time federal stimulus dollars. There is no guarantee the money will be available beyond the first year, he said.
In addition, UA has standalone items in the state budget whose funding could be reduced or eliminated by the General Assembly. That would force the university to shoulder more program costs.
While the university announced last week that it raised $606 million in its nine-year fundraising campaign, 95 percent of the gifts are earmarked for donor-specified areas, such as scholarships, and can't be used for salaries and other operating expenses, Case told employees.
Still, there is an upside to the UA budget: The salary freeze will not apply to employees who are promoted during the coming year or to the 1,100 employees in four unions with collective bargaining agreements.
That includes 700 faculty members represented by the American Association of University Professors. While they don't have a raise scheduled, they could receive bonuses of up to $1,000 each next spring based on enrollment growth this fall.
In addition, UA President Luis Proenza agreed once again to give employees three additional paid days between Christmas and New Year's Day.
With paid holidays, this means employees will be off from Dec. 25 to Jan. 2, which is believed to be the most liberal holiday schedule among tax-supported universities statewide.
It is unclear if nonunion employees will receive salary increases next year to help pay for health-care expenses, as they have for the past several years.
Carol Biliczky can be reached at 330-996-3729 or cbiliczky@thebeaconjournal.com.
About 3,800 employees at the University of Akron will not get raises in the coming academic year.
John Case, vice president of finance and administration, said UA is facing a projected budget deficit of $5 million to $10 million as it readies a balanced budget for the next fiscal year, which begins July 1.
Other tax-supported universities have taken similar steps to cut costs. Kent State is offering some employees up to one year of salary to leave; the University of Toledo is laying off 87 employees to eliminate a $16 million shortfall.
Many officials at tax-supported universities statewide have expressed concern about what will happen to the state subsidy for higher education in the state's next two-year budget.
Gov. Ted Strickland's proposed budget gives tax-supported colleges and universities an average of 6.5 percent more than they now receive in the first year in exchange for schools freezing undergraduate tuition. In the second year, they would not get an increase in the subsidy, but main campuses could raise tuition by 3.5 percent.
As proposed, UA would get 8.18 percent more next year over the $98 million it now receives, according to the Ohio Board of Regents. Kent State would get 3.32 percent more than the $105 million it receives, and Cleveland State, 1.28 percent more than the $75.8 million it receives.
The increases are based on performance standards developed by the individual universities. Case emphasized that those are only estimates and could change as the General Assembly approves the state budget.
In an e-mail to employees, Case said state support in the next biennium will be composed largely of one-time federal stimulus dollars. There is no guarantee the money will be available beyond the first year, he said.
In addition, UA has standalone items in the state budget whose funding could be reduced or eliminated by the General Assembly. That would force the university to shoulder more program costs.
While the university announced last week that it raised $606 million in its nine-year fundraising campaign, 95 percent of the gifts are earmarked for donor-specified areas, such as scholarships, and can't be used for salaries and other operating expenses, Case told employees.
Still, there is an upside to the UA budget: The salary freeze will not apply to employees who are promoted during the coming year or to the 1,100 employees in four unions with collective bargaining agreements.
That includes 700 faculty members represented by the American Association of University Professors. While they don't have a raise scheduled, they could receive bonuses of up to $1,000 each next spring based on enrollment growth this fall.
In addition, UA President Luis Proenza agreed once again to give employees three additional paid days between Christmas and New Year's Day.
With paid holidays, this means employees will be off from Dec. 25 to Jan. 2, which is believed to be the most liberal holiday schedule among tax-supported universities statewide.
It is unclear if nonunion employees will receive salary increases next year to help pay for health-care expenses, as they have for the past several years.
Carol Biliczky can be reached at 330-996-3729 or cbiliczky@thebeaconjournal.com.
Comments
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mogadore, oh
Posted 09:14 PM, 04/29/2009
But what about King Proenza????
Canton, OH
Posted 09:49 PM, 04/29/2009
Proenza gets fatter. .& the workers get " stiffed ". . .
Posted 10:02 PM, 04/29/2009
It is always that way. The higher ups that make bad decsions never get punished. The poor working stiff gets stiffed. Bankers and mortgage higher ups get billions in bailouts but the working stiff gets the crumbs with conditions.
I thought Obama was for the working man? It looks like the republicans and democrats both are not for the working man.
Posted 10:15 PM, 04/29/2009
Or President Lefton?
Akron, Oh
Posted 12:09 AM, 04/30/2009
Where are all the Proenza defenders now?
akron, OH
Posted 12:27 AM, 04/30/2009
I'll defend him...it sounds like a good management decision to me, and much less drastic to the workers than what's happening at so many other workplaces. Don't you people even KNOW anyone with jobs?
Cuyahoga Falls, Oh
Posted 07:31 AM, 04/30/2009
Seems Ms. Biliczky could have at least called up Doc Lefton(not too late at night, though) and asked what K.S.U.'s plans were for this coming 'Christmas break'. Last year he gave the non-bargaining unit employees at K.S.U. 4 'paid administrative days off' during said time period.
somewhere near you, US
Posted 03:35 PM, 04/30/2009
Get glad you have jobs. It could be much worse.
Akron, OH
Posted 10:52 PM, 05/04/2009
I love the whole "be glad you have jobs" rationale. It is such B.S.
Let's not forget that Dr. Proenza just received an 85 thousand dollar BONUS just 1 month before Dr. Case tells all the "worker bees" that there is NO money for raises this year. What does Proenza make nows? 500k for this year alone!
As for those with union contracts, well, they are always taken care of - the faculty, the maintenance workers, etc. Heck, the staff that do all the recruiting for Akron are not even rewarded when the enrollment increases. Guess who gets the bonuses? Yep, the faculty and Proenza.
The staff are the people who get screwed every time. Just goes to show you that unless you have a union contract, the administration will take advantage of the fact that they can "skip a raise" for you anytime they want. Perhaps it's time that the "non-bargaining" employees look into unionization. It's clear that is the only way they will get the adminstration's attention.
