Oct. 29, 2001

Dear Colleague:

An article in Thursday’s Columbus Dispatch presented an incomplete picture of recent compensation decisions at Ohio State. The following facts provide additional context and perspective on this important topic.

First, you will recall that state budget reductions late last spring forced us to make a short-term choice between salaries and core university programs. For this year, given the deteriorating budget situation, our commitment to maintaining the integrity of our academic core, and our commitment to use above-the-cap tuition to enhance the undergraduate experience, we were only able to provide minimal compensation increases. At the same time, we pledged a longer-term plan to advance faculty and staff compensation to nationally competitive levels.

As you know, every university employee who was performing satisfactorily received the same $395 increase this year. It’s worth noting that choosing a flat-dollar amount rather than a percentage increase tended to favor lower-paid employees. Lower-paid employees also benefited from a decision to provide every faculty and staff member earning $30,000 a year or less with a one-time cash credit equaling one-half of their higher health care premiums. These credits ranged from $50 to $150 per employee and cost a total of $373,000. In addition, we raised stipends for Graduate Associates and began making contributions to defray their health care expenses.

The chief topic of Thursday’s Dispatch article was a policy that gives Deans and Vice Presidents the flexibility to use their own funds to supplement funded increases with additional, limited compensation adjustments. It’s important to emphasize that this useful practice is not new; we have utilized it with good results for the last four years. Over that period, we have routinely shared information about these adjustments with Senate Committees on Faculty and Staff Compensation and Benefits.

A June 14, 2001, memorandum from the Provost to Vice Presidents, Deans and Chairpersons noted that, “As in previous years, colleges and vice-presidential areas will have latitude to make additional base salary adjustments and/or one-time cash payments out of their own resources.” The guidelines noted that, “Because this is an unusual year, Deans and Vice Presidents must have my approval prior to moving forward with any adjustments from college and vice presidential funds.”

Further, in a number of discussions with the Council of Deans, Vice Presidents and Department Chairs, I indicated that increases from internal funds should total no more than 1 percent of personnel budgets and target approximately one-third or less of faculty and staff, with particular attention to relatively low-paid employees. Overall, about 40 percent of the 1,926 people who shared $2.6 million in base salary adjustments or one-time cash payments this year earn $30,000 or less. Neither the President nor Provost, nor any Dean or Vice President, received any of these “special bonuses.” In fact, a very small percentage of academic and staff administrators received additional salary adjustments beyond the $395.

A chart accompanying the article compared our $395 flat increase this year with higher increases provided by Ohio’s other public universities, many of which made budget cuts to fund these larger raises. Again, these comparisons require additional perspective. For example, while other institutions used above-the-cap tuition revenues in whole or part to pay for higher salaries, Ohio State used these funds to strengthen undergraduate education programs, as we had committed to do.

Even so, we continue to pay substantially more in average faculty salaries than do any of Ohio’s 13 public universities. During the 2000-2001 fiscal year, our faculty salaries averaged $73,930 while those at Ohio’s 13 public universities averaged $63,390. In addition, that gap is increasing. Over the past five years from FY1996 to FY2001, our average salaries rose by almost 24 percent, compared with an 18.5 percent increase for Ohio public universities generally. Three universities have not yet determined their FY2002 compensation numbers, but when they do, we will promptly update our figures.

We are also in the process now of compiling and analyzing additional relevant statistical information from Ohio State and elsewhere that will help us in future decision-making. That information will be shared with Senate committees, USAC and others as it becomes available.

Finally, despite additional budget reductions from the state, we are making good on our promise to give top priority to faculty and staff compensation. We recently announced a process that over the next three to four years will bring faculty and staff salaries into line with those at our benchmark institutions. All faculty and staff contributing to the advancement of the University’s goals will receive compensation increases that move them to more competitive levels.

The months ahead will be particularly challenging for us all. At times, members of the university community may disagree as to university policies and ways to address the challenges before us. However, we will continue to address these difficult issues in an open and consultative fashion, utilizing the most complete information available at all times.

Edward J. Ray
Executive Vice President and Provost