Despite an unstable economy nationwide, universities around the country have faced hassles with funding issues and budget concerns. The University of Wisconsin System, for example, has struggled with the issue of adjustment in salaries for top UW System executives, igniting controversy.
In light of the attention surrounding the Board of Regents’ proposed salary adjustments, UW System President Katharine Lyall has shelved the issue of salary adjustments for a later date. The issue is still a concern, however, especially because of the competitive administrative job market.
“When critics say we should not raise salaries in the face of budget cuts, they’re correct. But if you want first-class people leading our schools, we must stay competitive,” Regent Roger Axtell said.
Axtell said both the University of Wisconsin-Milwaukee and University of Wisconsin-Stevens Point chancellors left for better salaries at other universities, each netting about $90,000 more in their new positions.
Fourteen out of the 35 UW System’s chancellors, vice chancellors and vice presidents are below the minimum salary range compared to peer universities, according to Axtell.
He said raising salaries is the best way to attract quality staff and faculty.
According to Axtell, the state only pays 27 percent of a student’s education, down from 50 percent in the ’80s. Students now pay 41 percent of the cost of their education.
“The students should have the greatest share of interest in this area. We owe it to the students to find the best people,” Axtell said. “Does it cost money? Yes it does, but
we’ve got to face that fact.”
The Board of Regents is investigating ways to compensate executive salaries to shift the financial burden away from students. Suggested alternatives include deferred compensation, annuities and donations from private sources.
“The difference is it sends the message to these people that you can never expect to be rewarded for your hard work,” Regent Vice President David Walsh said. “It’s not the amount of money of these raises, it’s the message.”
Walsh and Axtell both said one of their concerns is the rising cost of tuition.
“I’m very concerned about educational access for families that can’t afford it,” Walsh said. “We’re pricing ourselves out of the market. The creative mind does not belong to the wealthy — it’s spread around.”
One likely initiative for next year is the Return to Wisconsin program. Return to Wisconsin would give students of non-resident alumni discounts of around $3,000 off the normal out-of-state tuition rate.
The regents said attracting non-resident students is key for increasing tuition revenue for schools, due to their higher tuition costs.
“Unfortunately, all across the country has seen tuition increases,” Axtell said. “We’re losing the benefit of non-resident students because of these increases. The Board of Regents is launching a study to see how we are going to recast the system to cope with budget cuts.”
According to the Office of Academic Planning and Analysis, UW-Madison lags behind universities like UCLA and Ohio State University in compensation for professors.
The average salary for a UCLA professor is $117,913, while UW professors make an average of $96,394. In order to reach the median for professor compensation among public peer universities, UW would have to increase the average salary by five percent.
