To:  Board of Regents

From:  Richard A. Crofts, Commissioner

Date:  September 3, 2002

Subject:  Salary Increases for FY 2003

The staff agenda for this meeting includes salary increases for faculty and administrators for most of our campuses, although MSU Billings and Montana Tech are delaying salary adjustments until further information is known about enrollments and budgets. Salary increases on this agenda will go into effect on November 1, 2002.

The salary guidelines for this year were to follow the 4% increase in the State pay plan. The campuses also had the opportunity to bring forward special circumstances involving the need for individual equity or market adjustments for my approval before they could be placed on this agenda.

Following the same guidelines as I applied to the campuses, I have recommended three market adjustments in the Office of the Commissioner. I have also recommended 4% increases for both Presidents. Our two Presidents are significantly below market no matter how market average salaries might be calculated. I provided you considerable information about salary comparisons for our Presidents last year and I would be happy to have that information sent to you again. However, in times of budget reductions I cannot recommend larger than average salary increases for the Presidents, despite the excellence of their performance. It is my hope that the 4% increases will at least keep them from falling further behind their peers.