To: OSU Colleagues
From: Edward Feser, Provost and Executive Vice President
and Mike Green, Vice President for Finance and Administration
October 28, 2019
Dear OSU Colleagues,
Oregon State University is deeply appreciative of the outstanding contributions, dedication, and hard work of its employees, and the university is committed to attracting and retaining high quality and productive faculty and staff. We strive to support our employees fairly while also balancing competing financial pressures, including challenges in state and federal support for higher education, the imperative to keep the cost of attendance manageable for students, and the need to invest in priorities that advance the university’s mission and financial viability.
As you know, OSU continues to face a challenging budget environment. Mandated state public employee retirement and health insurance costs are rising. Enrollment growth—tuition from which now accounts for 70 percent of OSU’s education and general fund dollars—has slowed. State funding is not keeping pace with continuing service level costs. Meanwhile, units throughout the university managed significant expense reductions in FY18 and FY19, and will do so again in FY20.
At the same time, offering competitive compensation is critical to OSU’s goals to recruit and retain the very best faculty and staff. We do not wish to put the salaries that the university offers at a competitive disadvantage vis-à-vis our peers, a problem that has a compounding effect that is hard to rectify later.
Therefore, the university has decided again this year to implement a university-wide salary increase program. The scale and scope of the program is what we believe OSU can afford given the many competing needs for resources. Here is an overview of this program:
Because of the difficult budget situation, employees in senior academic and administrative leadership roles—including the president, provost, vice presidents and equivalent, vice provosts, associate vice presidents, and deans—will not be eligible to participate in the FY20 salary increase program.
Detailed information regarding the FY20 salary increase program and process timeline will be provided separately to unit leaders, who are responsible for deciding any changes in compensation for their employees.
Please direct any questions to Susan Capalbo, senior vice provost for faculty affairs, or Cathy Hasenpflug, chief human resources officer.
Provost and Executive Vice President
Vice President for Finance and Administration