The Wisconsin state legislature’s Joint Committee on Employment Relations officially approved a state recommendation that University of Wisconsin faculty and academic staff receive no pay increases for 2003-2004 on Tuesday.

The decision was made after a public hearing on the issue at the State Capitol. Prior to the hearing, Director of State Employment Relations Karen Timberlake recommended no pay raises to the committee for the ensuing year and only a one-percent increase for the 2004-2005 term. Senior executives will receive no pay increase in either year.

“The recommendation that faculty and academic staff receive no pay increase is consistent with the fiscal condition of the state,” Timberlake said. “Basically, in a time of an unprecedented fiscal year, unfortunately, the burden is shared by all groups.”

The UW Board of Regents researched the problem and then provided the state data on what exactly is needed in order to succeed. They sought funds for a four-percent increase in each year of the biennium, noting that such an increase is necessary to remain competitive with peer institutions.

The decision specifically provides no money for a general-wage increase for the university’s top administrators. Controversy surrounded pay increases because it was uncertain whether the Board of Regents met state anti-secrecy requirements. The regents would retain the power to correct “salary inequities” in these positions.

“It’s not a surprise,” UW System spokesperson Eric Christenson said. “We knew with the budget crisis there were no funds. The board acknowledges that the state is in an economic crisis.”

Christenson added that that stagnant salaries for university faculty and staff will cause serious challenges in recruiting and retaining employees.

“At a time when budgets are still lagging, most other institutions similar to Wisconsin and Madison are getting two percent pay increases. We’re going to continue to fall behind, and this is a major concern,” Christenson said.

In the previous biennium, 2001-2003, there was a 3.2 percent pay increase the first year and a 4.2 percent increase the following year.

Christenson also said that a previous decision provided that if a raise were less than two percent, cuts would be distributed equally across all UW campuses.

“This decision becomes an operating principle for the UW system,” Timberlake added.

Doyle’s administration also proposed that the new health insurance payment schedule be extended to include all UW faculty and administrative staff members.

“We’re glad university employees will not be treated any differently than other state employees,” Christenson said.

He added that this change will also cause a net reduction in take-home pay, especially in the first year with no pay raise. The estimated cost of the administration plan for the university is $17.1 million, including $6.3 million from the state’s general fund. The average cost of health insurance will be 12 percent higher in 2004.

According to the plan, employees with less than 50 percent appointment would be required to pay the new health insurance amounts plus half of the monthly employer contribution toward health insurance. Non-union graduate assistants would pay half of the health insurance payments of full-time workers.

“That would be a hardship for them,” Christenson said.