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Approved by the:
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University Senate - March 31, 2011
Administration - no action required*
Board of Regents - no action required
* In the face of necessary budget reductions, this administration will seriously consider all options available to ensure that impacts of budget cuts are handled humanely and without significant impact on any one group.
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Equity during Budget Cuts
Should it
be necessary to implement salary reductions for University employees in the
future, the University Senate requests that the administration seriously
consider a progressive scale based on principles of protecting living wages and
social justice.
COMMENT:
The
administration asked the Faculty Senate to vote its assent to the temporary
reduction of faculty salaries for fiscal year 2010-2011, while also proposing to
reduce the compensation of other employees of the University, in accord with
Section 4.5 of the Regents’ Policy on Faculty Tenure. The reduction of
faculty salaries was approved by the Faculty Senate (1.15% for the salaries of
all faculty and P&A employees, 2.3% for academic and administrative
officers, and a three day furlough for staff) and was projected to yield savings
of $18.5 million. In a comparable situation of economic duress, in 1932, the
Regents of the University of Minnesota imposed a salary cut on a sliding scale,
reducing all salaries above certain thresholds and imposing no reduction on
salaries below a certain threshold.
The
Equity, Access, and Diversity Committee (EAD) appreciated the
administration’s efforts last year to respond to concerns faculty
expressed about equity in dealing with the University’s financial
troubles. Nevertheless, EAD is concerned that across-the-board percentage pay
cuts are inherently regressive in their disproportionate effect on lower-income
members of the University community.
Should a
similar financial situation arise, the University Senate recommends that the
administration adopt a progressive and equitable scale so that employees who
garner the highest wages at the institution are more proportionally affected for
the short term and that the administration protect employees who are the
lowest-paid and most vulnerable (for example, employees making less than 200% of
the U.S. poverty level) not be asked again to help balance the University budget
in difficult economic times.