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March 7, 2002

Chancellor won't speculate about pay hikes for next year

Following last week's legislative hearings in Harrisburg, Chancellor Mark Nordenberg wouldn't speculate about Pitt salary increases for this summer.

But he told the University Times: "We recognize that the progress of the University is tied to the talent and the hard work of the people at Pitt, and we will do everything that we can to create a reasonable salary pool in these difficult times. That will be one of our biggest priorities."

Pitt faces a likely 3 percent cut in its current state appropriation, and Gov. Mark Schweiker has proposed a further 5 percent cut for the fiscal year that begins July 1.

Such cuts would threaten Pitt's teaching and research missions, Nordenberg told the state Senate's appropriations committee on Feb. 26.

Pitt can't pursue jobs-creating economic development projects unless the University can "attract, support and retain the very best people," the chancellor added. "Otherwise, the centers of excellence will emerge in northern California or in St. Louis or in Baltimore or in some other place."

For years, Nordenberg said, public universities such as Pitt have found it increasingly difficult to compete for faculty. "There has been a widening gap between compensation paid by major private universities and what is paid to faculty by major public universities. Pennsylvania has been particularly disadvantaged by that" because low increases in state funding have limited salary budgets here, the chancellor said.

Nordenberg and the presidents of Penn State, Temple and Lincoln said universities are "very people-intensive" institutions where salaries and employee benefits account for the bulk of spending.

They noted that their schools have just two major sources of revenue for educational and general expenses: state funding and tuition.

For the current fiscal year, a lower-than-hoped-for state funding increase of 0.6 percent forced Pitt to raise tuition by 7.5 percent, the largest such hike here in 13 years.

But Pitt managed a 4 percent increase in its pool of money for staff and faculty salaries, including 2.5 percent raises for employees judged by their supervisors to be doing satisfactory work.

Nordenberg called the 4 percent salary pool increase "a reflection of our hopes and our desires and our hard work, because that wasn't easy last year. We have even bigger challenges to meet this year, but will be doing everything we can to meet them."

The chancellor said he felt encouraged following last week's hearings. "Both hearings reinforced my sense that members of the legislature really do care about higher education and care in particular about the University of Pittsburgh," Nordenberg said. "I have enjoyed a good working relationship with people here and welcome the opportunity to work with members of the House and Senate as this process moves forward.

"In the end, though, real optimism has got to be tied to changes in the economy and improvements in the revenue streams that would give leaders in Harrisburg more room to support us as a priority. So while I'm working, I'm going to be keeping my fingers crossed."

— Bruce Steele


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