Regents to Discuss Prop 100, Salary Reductions

Regents to Discuss Prop 100, Salary Reductions

By Alexis BlueUniversity Communications
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The Arizona Board of Regents will hold a special meeting at Arizona State University's Downtown Phoenix campus Friday and Saturday. Among the topics expected to be addressed are Proposition 100, the ABOR-mandated 2.75 percent salary reduction to the state's three universities and the formal dissolution of the College of Medicine-Phoenix partnership between the University of Arizona and ASU.

Proposition 100

Arizona voters will decide on May 18 whether to approve a temporary 1 percent increase in the state sales tax. 

If approved, Proposition 100 would increase the sales tax from 5.5 to 6.6 cents on the dollar for three years, bringing in slightly less than $1 billion a year for the state, which faces a $2.6 billion budget shortfall.

The state has passed two budgets, one based on the passage and one based on the failure of Proposition 100. If the tax increase is approved, the UA, ASU and Northern Arizona University will not see their state funding cut. If the proposition fails, however, the state's "contingency budget" calls for a $107 million reduction in state funding to the university system, with the UA's share being $42 million.  

The regents are expected to discuss the potential impacts of Proposition 100 on the state's already financially struggling universities. In the past two years, the UA has lost $100 million in state funding.

(For more on the possible impacts of Proposition 100, see the UANews articles "Prop 100, ABOR Salary Cut Discussed at Faculty Senate"  and "Passage of Proposition 100 Will Save 13,000 Jobs, UA Study Predicts")

Salary Reduction

In March, the regents directed all three state universities to reduce their general fund expenditures on salaries by 2.75 percent next year. The three university presidents will be asked to present their plans for meeting that directive during this week's board meeting.

As a result of the mandate, UA employees will be required to take unpaid time off during the fiscal year beginning July 1. President Robert N. Shelton announced earlier this month that employees making more than $40,000 will be required to take between one and three unpaid days off, depending on their salary level. Those making less will not be required to take unpaid days.

The 2.75 percent reduction amounts to about $5.3 million for the UA, which Shelton has said will be reallocated to a separate account for other uses at the University – not given back to the state.

A list of frequently asked questions on the UA's furlough program is available on the Human Resources website.

(Read more in "Shelton Calls for Furloughs in FY2011")

UA College of Medicine - Phoenix

The board is expected to finalize the dissolution of the UA College of Medicine-Phoenix's partnership with ASU.

ASU announced earlier this month its decision to withdraw from the partnership, giving the UA full responsibility for the campus' operations.

Now in its third year, and UA College of Medicine-Phoenix currently has a class of 48 medical students, and the planned construction of a new Health Sciences Education Building is expected to allow enrollment to grow to 480 medical students and 80 pharmacy students at a time when Arizona faces a shortage of physicians and health care workers.

(Read more in "Arizona State University to Withdraw From Partnership With University of Arizona on College of Medicine-Phoenix")

Other Business

A search committee is expected to make its recommendation to the board about who should serve as the next ABOR president, a position currently titled "executive director" and held by Joel Sideman.

The president will oversee operation of the board's central office in a paid, non-regent position. (The regents' position of president, now held by Ernest Calderon, will be renamed "chairman.")

Finalists for the president position are David Young, senior vice president for academic affairs at ASU, and Tom Anderes, senior vice president for administration and fiscal affairs at the University of Wisconsin. The appointment is expected to be approved by the regents at their general board meeting in June. 

An agenda for this weekend's meeting should be available on the ABOR website by Thursday.  

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