Monday messages

May 20, 2003

Legislative Update and Merit Salary Increase

Last year at this time, the Legislature and the Governor were still hard at work hammering out a very contentious state budget. The process went more smoothly in 2003, reflecting the fact that, given lower revenue projections, there was really not a great deal to argue about. .

The Legislature has now finished work on the state budget "Omnibus Bill" for the fiscal year that begins July 1, 2003. The Governor received the legislation on May 14 and has 10 days in which to act on it. The Legislature will adjourn officially on May 29 and reconvene January 12, 2004.

The good news is that all state employees (classified and unclassified) will receive an average 1.5 percent merit pay increase during FY04, though it won't take effect until the fourth pay period, in mid-August. Any increase is an improvement over the current year, when no regular increase was provided to anyone, but it's less than we asked for and less than KU faculty and staff deserve. Also ignored - again - was the third year of the faculty salary increases promised under SB 345.

Another positive is the fact that the budget does not impose any new reductions on KU's base budget, as was done late in the session a year ago. Instead, our budget remains at roughly the FY03 level, including the allotment reductions imposed last summer and fall. That level is about 7.7 percent lower than it was in FY02, an effective cut of over $18 million for the whole of KU.

Bear in mind, however, the Board of Regents asked for a 6 percent block operating grant increase for all institutions, which would have provided a regular salary increase for all staff. This increase would also have paid for unavoidable employer costs, such as increases in health insurance and fringe benefits. Instead, special Regents bonding authority was approved that enables us to realize one-time savings. These savings will help us address the fixed cost increases during FY04.

Another victory for KU was the Governor's veto on April 21 of a budget proviso - introduced by Sen. Susan Wagle of Wichita - that could have eliminated all state funding for our School of Social Welfare. While the possible loss of funding was a grave concern, it was even more troubling that such an issue was allowed to sidetrack the budget process.

On May 2, Sen. Wagle attached a new amendment to the Omnibus Bill that compels KU and other Regents universities - by January 12, 2004 -- to develop and implement policies on sexually explicit materials in the classroom, on teaching about pedophilia, and on sexual harassment in the classroom. While this amendment at least acknowledges that universities and the Board - not the Legislature -- should set academic policies, it's a disturbing precedent. The Governor has not yet said whether she will permit this provision to take effect.

We started the session asking for fewer state rules and regulations, and I participated in a meeting last week with Howard Fricke, secretary of administration, which considered such matters. I believe there is support for examining the costs of doing business as a state agency, and finding ways to free KU and other public universities to manage ourselves more effectively and efficiently, ultimately saving the state money. Another positive result of this session: $700,000 was allocated to the KU Medical Center for children's biomedical research at the new Hoglund Brain Imaging Center. This funding was in some doubt up until the end of the session, so the outcome is something to celebrate.

It's too early to tell what impact the new budget will have on KU. At the Medical Center, with a mix of funding that's different from the mix at Lawrence, some additional staff positions have already been eliminated in anticipation of this level of funding. Further reductions in the revenue estimates as we move into FY04 could result in new budget allotments, similar to the ones we experienced last August and November.

One thing is clear as we close out this legislative session: conveying the University's message to the Legislature is a continuous process. KU needs advocates statewide among its alumni, its donors, and others whose lives we touch. As the economy improves, we will make a strong case for increased state funding. It will need to be backed up, however, by business leaders, local government officials, and everyone who values education in Kansas. We have such advocates now. We need more of them, and we need them to speak forcefully with their legislators throughout the state.

Bob Hemenway
Chancellor