Trustees vote on whether to seek $23.5M for salaries in 2007-08 budget

By DARREN DUNLAP, dunlapd@knews.com
November 3, 2006

The University of Tennessee Board of Trustees votes today on whether to seek an additional $23.5 million for employee compensation in its 2007-08 budget. UT’s Finance and Administration Committee recommended Thursday in Knoxville that additional funding be included to boost the system’s overall salary pool by 5 percent.

Another committee is recommending that UT President John Petersen get a 5 percent raise.

The pool boost would not be used for across-the-board raises. It would go toward retaining quality faculty and staff members, rewarding high-performing employees and bringing salaries to a competitive level.

The increase is part of a $60 million operating improvements package proposed in UT’s budget request for 2007-2008, if the board votes in favor of it.

The state Legislature would have to approve such a funding package.

“Seventy percent of our budget is for salaries and benefits,” said Andrea Loughry, board vice chair.

UT’s system operates universities across the state, including Memphis, Chattanooga and Martin. There are 16,444 employees statewide, not including students, and 8,300 in the Knoxville area.

UT staff members in Knoxville received an across-the-board raise of 2 percent this fiscal year. Faculty members got a 1 percent across-the-board raise, and UT set aside a merit pool - equivalent to a 1 percent raise - to reward its best performers.

Following the Finance and Administration Committee Thursday, the board’s Executive and Compensation Committee recommended boosting Petersen’s annual salary of $399,228.

“He has just met our expectations in every way,” said Don C. Stansberry, Jr., board trustee.

Petersen was not present for the committee’s discussion.

Board trustee James L. Murphy’s motion also included an increase in Petersen’s expense account of $5,000 annually and a sixth-year retention bonus of $50,000.

Under his current contract, Petersen could get $250,000 after five years - $50,000 per year - as a retention bonus. The committee’s recommendation adds another $50,000 for the sixth year.

The board initially planned to consider his raise on July 1, as part of his contract. Loughry said Petersen asked that it not be discussed until a salary plan for all UT employees was in place. If approved, the raise would be retroactive to July 1.

The Executive and Finance Committee also recommended compensation adjustments for the current fiscal year and for four senior staff members whose salaries were “substantially lower” than market value, according to Petersen.

UT Vice President for Development and Alumni Affairs Henry Nemcik also told UT’s Advancement and Public Affairs Committee that the university had $347 million in pledges for its $1 billion campaign.

Darren Dunlap can be reached at 865-342-6334.
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