Recession impacts payroll
Fisher reacts to unprecedented payment for full time employees
By Alysa Stryker
Last Updated:1:57 PM EST 11/5/09 Section: News
A one-time payment was given to all eligible full-time faculty and staff this year in lieu of a salary increase, which garnered mixed reactions from faculty and staff.
Each year, the faculty welfare committee brings a request to the president for a salary increase. To come up with a figure, the committee looks at the Consumer Price Index.
The CPI for September 2008 to September 2009 was approximately four percent, and the committee proposed a conservative salary increase of three percent.
However, when the budget was presented to the Board of Trustees in March, the Board did not accept the three percent raise.
"There was no pay raise approved in that budget in March. The whole point was that it would wait until the October census," President Bain said.
Through communications beginning last October and recurring throughout the year, faculty and staff were updated on their financial status. They were told that, due to the unusual economic climate, their payment would be contingent upon final enrollment and revenue figures that would be released in October, Bain said.
However, many faculty and staff members were confused when they did not receive a raise even though enrollment figures were met.
According to Bain, much of the confusion resulted from a misunderstanding of the fact that the budget is contingent upon both enrollment figures and revenue.
Although enrollment figures were met, the college faced a decline in revenue.
This year, Fisher increased financial aid to students, adding about $1 million.
Chief Financial Officer Tom O'Neil explained that tuition figures also took a toll on revenue.
"Over the past six years, the total tuition [and] room and board percentage increase that we had passed on to students averaged about six percent. This past year, it was three percent," O'Neil said.
According to O'Neil, this three percent difference accounts for major losses in revenue. This loss approximately amounts to $2.5 million, and over a ten-year period, that is equal to about 20 to 30 million dollars that the college will not generate.
Each year, the faculty welfare committee brings a request to the president for a salary increase. To come up with a figure, the committee looks at the Consumer Price Index.
The CPI for September 2008 to September 2009 was approximately four percent, and the committee proposed a conservative salary increase of three percent.
However, when the budget was presented to the Board of Trustees in March, the Board did not accept the three percent raise.
"There was no pay raise approved in that budget in March. The whole point was that it would wait until the October census," President Bain said.
Through communications beginning last October and recurring throughout the year, faculty and staff were updated on their financial status. They were told that, due to the unusual economic climate, their payment would be contingent upon final enrollment and revenue figures that would be released in October, Bain said.
However, many faculty and staff members were confused when they did not receive a raise even though enrollment figures were met.
According to Bain, much of the confusion resulted from a misunderstanding of the fact that the budget is contingent upon both enrollment figures and revenue.
Although enrollment figures were met, the college faced a decline in revenue.
This year, Fisher increased financial aid to students, adding about $1 million.
Chief Financial Officer Tom O'Neil explained that tuition figures also took a toll on revenue.
"Over the past six years, the total tuition [and] room and board percentage increase that we had passed on to students averaged about six percent. This past year, it was three percent," O'Neil said.
According to O'Neil, this three percent difference accounts for major losses in revenue. This loss approximately amounts to $2.5 million, and over a ten-year period, that is equal to about 20 to 30 million dollars that the college will not generate.
Viewing Comments 1 - 1 of 1
William Brown
posted 11/07/09 @ 10:01 AM EST
In reading this article, my first reaction was....
"The Faculty WELFARE Committee?" Who came up with that name? With all due respect to the real intent of the committee, I would suggest a more positive name change to the committee. (Continued…)
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