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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Knighty Tin who wrote (5612)5/5/2004 12:11:32 PM
From: mishedlo  Read Replies (2) of 116555
 
SALARIES
UK staff, faculty to get 1% raises
2% WOULD MEAN LAYOFFS, TODD SAYS
By Linda B. Blackford
HERALD-LEADER STAFF WRITER

When University of Kentucky officials announced a 14 percent tuition increase last month, they said part of it would cover a 2 percent raise for the faculty and staff.

But increased health care costs and a $3 million hole in the budget mean that next year that raise will be just 1 percent.

If raises were 2 percent, layoffs would have been assured, President Lee Todd told the Board of Trustees yesterday.

"We did put $5.6 million into health care to hold those costs flat," Todd told the board.

UK has lost $73 million in state budget cuts in the past four years.

The news "was a surprise, but given the environment, not unexpected," said Jeff Dembo, chairman of the University Senate. "But folks can only say 1 to 2 percent is better than nothing for so long."

"To faculty, there is a perception that not enough is being done," he said.

Staff members are also disheartened, said Russ Williams.

"It's a tough time on campus; things are not going well," he said. "You simply have dreams and aspirations and don't have the resources to get there; it's frustrating."

Williams said that for many lower-paid employees, a 1 percent raise doesn't help them provide for their families.

"The difference between 1 percent and 2 percent literally impacts the ability to meet the most basic demands of living," he said.

Staff members make up 9,000 spots in the UK work force, with 2,000 faculty members. UK's total student population is 26,000, including graduate students.

In 2002, faculty and staff members received one-time merit raises from a 3 percent pool given to each department. Last year, they received 3 percent raises.

But budget cuts are being experienced at every level of the school, as programs are cut and high-profile faculty members leave. In the past few months, UK has lost famed anthropologist Tom Dillehay, three top English professors, and two distinguished political science faculty members. All said their decisions were partly influenced by budget cuts.

Steve Reed, board chairman, asked Todd to compile a record of faculty members who leave and who are hired throughout the year.

kentucky.com
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