Missouri State University is proposing a 3 percent pay increase for employees for the 2021-22 year, the highest across-the-board raise in at least 10 years.
MSU President Clif Smart said limited state funding in past years and, more recently, the uncertainty of the pandemic, meant budgets were tight and employee pay raises during the past decade have not kept up with inflation.
In meetings with the MSU Board of Governors this week, Smart outlined what he called a “pro-employee” spending plan for next year that includes the pay raise and a series of improvements to employees’ benefits and compensation packages.
More:Priority for the next Missouri State budget? Playing ‘catch-up’ on faculty, staff pay
Smart said the raise is possible because of spending cuts made last year and Missouri lawmakers support for a “significant funding increase” for next year. “The legislature passed a budget that includes a 3.7 percent core operating appropriations increase for all public universities.”
He said with the change, the university expects to receive $97.5 million in state funding or the 2021-22 year, an increase of $3.5 million. Additional funds were earmarked for a cybersecurity center at the Jordan Valley Innovation Center, an expansion at the Darr Agriculture Center and a welding lab at the West Plains campus.
“The Executive Budget Committee, which is very much representative of our whole team, is very pleased with this budget proposal,” Smart told the board. “This is a morale boost.”
Board members applauded the spending proposal but asked if the university ought to be make up even more ground on pay with a bigger raise.
“I was encouraged by the 3 percent. I don’t think it’s enough,” said MSU board member Lynn Parman.
She encouraged the university to pay through the lens of employee retention and noted there were unfilled positions and hiring freezes during parts of the pandemic.
“I want to come out of this strong,” she said. “And we may have a unique window to do that.”
Recent surveys of MSU faculty and staff showed good morale overall but noted a high level of dissatisfaction with pay levels.
More:Terique Owens, son of Hall of Fame receiver Terrell Owens, to transfer to Missouri State
Smart said he understood that temptation but cautioned there was too much uncertainty going into the third school year impacted by the pandemic. For example, enrollment — a major revenue source — is projected to be flat this fall.
The 3 percent across-the-board pay raise is expected to cost $3.9 million.
He said the university had the option of bumping the pay up to a 4.5 percent raise, given the projected state funding levels, but worried it might be an overreach.
“What if next year there is no money to do it again,” Smart asked the board. “I’d rather do a 3 percent this year and a 3 percent next than to do a …4 to 5 percent this year and be at zero next year.”
Smart added: “It’s both prudent and a morale builder to build on this a year from now. I’m totally in agreement that this is the most important thing we should spend our money on but my recommendation is that we should do it in two stages.”
In the large board meeting Thursday attended by faculty and staff members, Smart said the direction of the MSU board was clear.
“The board has challenged our administrative team to continue to build on the progress we’ve made this year on both compensation and benefits,” he said. “That will remain a priority of the board and I’ll have accountability for that as well.”
Smart acknowledged the university needs “to make progress” on employee pay.
“It has been challenging, as you know 40 percent almost … of our revenue comes from the state and in either six or seven of the last 10 years, (state funding) has either dropped or remained the same,” he said.
Smart said, at a minimum, the university ought to be keeping up with inflation each year “because otherwise you’re getting a pay cut.”
Ryan Reed, chair of the Staff Senate, noted the pay level was the least favorable item on the recent staff survey, which is given every other year.
“We are happy that 3 percent raises will go into effect,” he told the board. “So, hopefully, the next go-round, this will go up.”
Smart said MSU constantly compares its pay levels to similar institutions and the market in an effort to remain competitive and still has work to do in that area. However, he said this year’s pay raise will help.
More:Missouri State University to extend Grand Street pedestrian underpass, add elevator
“We will improve in that category this year because many institutions will do little or no pay increase this year while we’re doing the biggest pay increase we’ve done,” he said.
He said the university wants to get to the median pay level for positions but, historically, have been off by “three to five percent” in many categories.
“It’s less expensive to live in Springfield than to live a lot of places but that doesn’t justify being substantially off,” he said.
The pay raise was just part of the spending proposal for next year that directly impact employees.
The university is in the process of “unfreezing” and restoring part of the faculty and staff positions put on hold during the pandemic. MSU officials anticipate restoring at least 25 positions — worth about $2 million — but the number is still being finalized.
A sampling of other benefit and compensation proposals include:
- Significant improvement to the dental plan
- Minimum wage increase for full-time employees
- Faculty promotions and full professorships
- Partial restoration of the travel budget for recruiting and faculty presentation
Claudette Riley is the education reporter for the News-Leader. Email news tips to criley@news-leader.com.
Read More:MSU proposes highest employee pay raise in at least 10 years
2021-05-16 11:06:34
