Thursday, June 26, 2014

Update Regarding the State Budget from President Sullivan

Two important points:
  • "Classified staff will not be eligible for a salary adjustment because any such increase must be authorized by the state, and that authorization was also removed from the budget."
  • "We have decided to delay the effective date of faculty and staff salary increases from July to October 1 of this year."

Full text of President Sullivan's Email:

Dear U.Va. Colleagues:


I write to provide an update on the budget for the Commonwealth of Virginia and its implications for the University's budget for the 2014-15 fiscal year. The original state budget introduced last year by Governor McDonnell would have added $9.39 million to the Academic Division's general fund appropriation.  In recent weeks, while the General Assembly was deadlocked in an impasse over the budget, we learned that Virginia is facing a budget shortfall estimated at $350 million for the fiscal year that will end June 30, with a more significant shortfall projected for the 2014-16 biennium.


Largely because of the projected shortfall, the General Assembly last week submitted a revised budget to Governor McAuliffe that will add only $1.19 million to the University's general fund appropriation. The Governor has approved this budget.

 
One change to the original budget removed the unrestricted appropriations for salary adjustments and performance funding ($5.31 million). This means that our planned 4.75% merit salary increase pool for teaching and research faculty and the 3% merit increase pool for administrative and professional faculty and University staff must now be funded strictly from University resources. Classified staff will not be eligible for a salary adjustment because any such increase must be authorized by the state, and that authorization was also removed from the budget. A more detailed description of the budgetary changes appears at http://www.virginia.edu/governmentalrelations/FY15_budget_comm.pdf

 
Let me reassure you that these developments with the state budget do not diminish our long-term commitment to improve salaries for U.Va. faculty and staff. Last year, the Board of Visitors approved a four-year plan regarding faculty salaries, with the goal of achieving an average faculty salary within the top 20 AAU institutions by 2017. We also are committed to achieving market-level rates in our staff compensation. 


To accomplish these goals while navigating this period of uncertainty, we have decided to delay the effective date of faculty and staff salary increases from July to October 1 of this year. This delay will ensure the financial stability of the University following reduced appropriations, while sustaining our commitment to competitive faculty and staff compensation as one of our top institutional priorities.

 
While the state budget has fluctuated over the years, the loyalty of our faculty and staff has remained steadfast. I am very grateful for your dedication, and for the many ways in which you contribute to the success of this great University.


Very truly yours,


Teresa A. Sullivan

President
 

President Sullivan approved distribution of this message.

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