Board of Trustees Meeting Agenda | July 2021

3. Budget Drivers – Operating Expenses The budget drivers that have the most significant influence on operating expenses are total employee FTE and annual increases in wages and benefits. Both elements imply future obligations, as most personnel have expectations of continued employment. The chart below shows FTE by employee type in the spring term for the past five years across all fund groups. Reductions across all employee groups are the result of hiring restrictions across the board due to the conditions presented by the pandemic. Note that increases or decreases may not necessarily mean new positions were added; there is also fluctuation due to vacancies in existing positions and additional workload (“overload”) assigned to faculty when needed.

All Funds Employee FTE

All Funds - Spring Term FTE

- 100.00 200.00 300.00 400.00 500.00 600.00 700.00




Spring 17 Spring 18 Spring 19 Spring 20 Spring 21

In addition to FTE, wage and benefit increases also have a significant impact on the university’s budget. The different employee types tend to experience varying across-the-board, cost-of- living increases. During a period of several years after the Great Recession no wage increases were possible, due both to lack of funding and a state-mandated wage freeze. Since 2013, however, classified staff have experienced annual wage increases of between 1.8 percent and 3.0 percent, along with increases associated with the state pay schedule for classified employees. Administrative staff have generally seen increases around 2.0 – 3.0 percent, and faculty have received 3.0 to 5.0 percent, not including merit and promotional raises, as applicable.

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