Faculty, P&S staff will see targeted salary increases on July 1

Midyear cuts in state funding, followed by further reductions for the budget year that begins on July 1 (FY18) have created a tight environment for employee salary increases this summer. In a May 31 salary policy memo to the four division leaders, interim President Ben Allen said 0.25 percent -- approximately $970,000 -- will be available university-wide in FY18 to award salary increases to faculty, professional and scientific staff and contract staff. He noted that this amount will support only "narrowly targeted" increases for exceptional performers or to address equity or market issues. All increases must be submitted to the appropriate senior vice president for approval.

"As a result of limited resources and uncertain state support, we will not mandate salary increases for FY18," Allen wrote.

The salary adjustment policy applies to all funding sources, including employees paid by external grants. It may be adjusted for Ames Laboratory employees to match federal salary adjustment guidelines.

Documents related to annual salary adjustments, including frequently asked questions and the form needed to request a salary increase this year, are on the university human resources (UHR) website.

Why so tight?

Iowa State's general university appropriation from the state -- $184.4 million last July -- will shrink to $172.8 million on July 1. Allen said that $11.52 million cut will be spread across the divisions in proportion to their general fund budgets this year. In addition, the Nutrient Research Center, Leopold Center for Sustainable Agriculture and the Small Business Development Centers lost direct state appropriations totaling $1.82 million. Even with a tuition increase approved in December by the state Board of Regents, a proposed second increase on the board's agenda next week and an incremental increase in costs recovered from sponsored research, the projected net revenue increase in Iowa State's FY18 operating budget is $14.3 million. Allen said those dollars will be allocated to student-centered priorities and to mandatory cost increases outlined below.

FY18 operating budget: Use of incremental revenue

Student financial aid (merit- and need-based)

$6.8 million

Strategic priorities related to enrollment growth

$2.9 million

Investments in five academic programs* receiving first-time differential tuition

$1.1 million

Investments in international student programming (second year of differential tuition)

$0.90 million

Salary increases for merit employees per AFSCME contract

$1.1 million

Targeted salary increases for faculty, P&S staff, contract employees

$0.97 million

Mandatory increases related to contracts, inflation, compliance

$0.75 million

Costs to bring online two new buildings**

$1.5 million


$16.0 million

Operating expenses for centers (2) removed from state support

-$1.7 million


$14.3 million

*Animal science, biology, computer science, industrial design and natural resource ecology and management
**Bessey addition, Advanced Teaching and Research Building

Merit salary increases

In the first year of a two-year contract between the state and the American Federation of State, County and Municipal Employees, ISU merit employees will receive a 1 percent salary increase on July 1. As part of changes to the Iowa Code made this winter by the 2017 Legislature, step increases associated with ISU merit employees' anniversary dates are to be set now by the state Board of Regents. The proposal included in the board's June agenda calls for no step increases during FY18.

ISU Plan premiums holding steady

UHR director of benefits Ed Holland confirmed this week that the health and dental plans and employee premiums in place now for the ISU Plan will not change for the 2018 plan year, which begins on Jan. 1. This will mark the fifth year at the same premium levels. On Jan. 1, the ISU Plan will become the benefits option for all university employees.