2014-2015 Campus-Based Equity Program for Faculty

General Information 

The 2014-2015 campus based equity program consists of two 'rounds' of calculations.  Faculty will receive the increase from both rounds in one transaction.  This increase will be effective retroactive to July 1, 2014, and will be applied after negotiated salary changes in the current collective bargaining agreement between the CSU and the CFA have been calculated.  It is our intent to have the April 30, 2015, pay check contain increases for eligible faculty.  The retroactive payments will be processed according to the State Controller’s Office (SCO) timelines. 

To be considered for the Fresno State Campus-Based Equity Program, a person must be:

  1. Tenured or Tenure Track Faculty (FERP are not included) and
  2. Active Fall 2014 and Spring 2015

Round 1: Raising salary minimums at each rank. (Total Cost: $592K)

This round represents an increase to base salary at the Assistant Professor, Associate Professor and Full Professor ranks (and equivalent for Librarians and SSP/ARs).  Our goals were to provide a living wage for the tenured/tenure track faculty and to address equity issues (inversion and compression) related to low starting salaries.

  • After reviewing living wage profiles for the Fresno County area using the California Budget Project Calculator[1], we found that the living wage for a family is $62,364. Using profiles for single adults or the MIT living wage calculator[2] would have resulted in significantly lower annual salary minimums. Reviewing this information is not the sole criteria; however, it provides a strong reason to ensure that we establish campus-wide minimums. 

Methodology used to determine base salary minimums

  • We dedicated approximately 60% of the equity pool to raising salary minimums in order to address other equity issues.  Given that historically, Service Salary Increases (SSI's) were in the 2.5% to 2.65% range and Social Security Cost of Living Adjustments (COLA) percentages[3] have averaged 2.4% over the last 15 years, we used an adjustment factor of approximately 50% of the SSI/COLA averages in order to stay within the limit of $600,000.
  • We calculated the average Assistant Professor salary campus-wide (excluding Business and Engineering), $63,000 per year ($5,250 per month), to determine the new minimum.  This amount is above the living wage discussed above.
  • We applied 1.25% for five years and 7.5% in the sixth year to acquire the Associate Professor minimum, $72,600 per year.
  • We then applied the same percentages, 1.25% for four years and 7.5% in the fifth year to the Associate Professor minimum to acquire the Full Professor minimum, $81,408.

Benefits of this proposal:

  • New campus salary minimums at each rank are significantly higher than CSU minimums.
  • Ameliorates inversion for faculty hired at low starting salaries.
  • Sets new Assistant Professor minimum above the living wage.

Minimums by Rank & Classification Assistant Professor
Sr. Assist Librarian
SSP/AR - I
Associate Professor
Associate Librarian
SSP/AR - II
Full Professor
Librarian
SSP/AR - III
Academic Year - CSU Minimum $51,492 $58,968 $74,256
Academic Year - Fresno New Minimum $63,000 $72,060 $81,408
       
12 month- CSU Minimum $58,968 $67,656  $85,392 
12 month- Fresno New Minimum $72,456 $82,872 $93,624

Round 1 - application of the program

  • If a faculty member's annual base salary is below the minimum listed in the table above for the corresponding rank and classification, the new base minimum will be applied.
  • For Department Chairs, salary without chair stipend will be used for comparison.
  • If promoted August 18, 2014, apply the minimum to the existing rank in July and August and process any eligible increases for two (2) months only, and; then apply the minimum to the new rank effective August 18, 2014, and process any additional increases.

Round 2:  Recognizing Years in Rank (Total Cost: $448K)

Employing the same logic used to increase the base salary at the various ranks for tenure/tenure track faculty, apply 1.25% for each year in rank up to a total of 5.00% in a rank or the SSI max (whichever amount is reached first).

 Benefits of this proposal:

  • Maintains consistency for the equity program as whole.
  • Recognizes years of service within a rank, which was not available the last seven or more years.
  • Addresses inversion and compression below the SSI max. It does not eliminate all cases of inversion, but it does reduce the amount of inversion in many cases.
  • Complements the increase to the base proposal.

Round 2 - application of the program

In addition to the eligibility criteria for Round 1, to be included in Round 2, a faculty member's salary must be below the SSI Maximum for the rank held as of 8/18/2014, using the stated SSI Maximums effective 7/1/2014, without adjusting for FMI awards.  

For each year in your current rank (as of 8/18/2014), add 1.25, and then multiply this total percent (1.25 x # years in rank) by the base rate and round to nearest dollar. The increase cannot exceed 5% or the SSI Maximum.

Examples:  

  • 5 years as an Associate Professor - AY  annual base salary of $72,060 or $6,005/month
    • 1.25 X 5 = 6.25; only eligible for up to 5%  
    • 6,005/month * .05 (5%) = $300 (rounded);  $6005 + 300 = 6305/month or $75,660 annually
    • Since $75,660 IS LESS THAN $81,480, the new annual salary will be: $75,660.
  • 3 years as a Full Professor - AY with an annual base salary of $86,232 or $7,186/month
    • 1.25 X 3 = 3.75
    • $7,186/month * .0375 = $269 (rounded); $7186 + 269 = $7,455/month or $89,460 annually
    • Since $89,460 IS GREATER than $89,412, the new annual salary will be: $89,412 (SSI MAX)
  • A faculty member promoted Fall 2014 will not be eligible for round 2, as s/he has no years in rank.

SSI Maximums by Rank & Classification Assistant Professor
Sr. Assist Librarian
SSP/AR - I
Associate Professor
Associate Librarian
SSP/AR - II
Full Professor
Librarian
SSP/AR - III
Academic Year $64,644 $81,480 $89,412
12 month $74,256 $93,732 $102,912

Calculation Notes:

  • Department Chairs.  The amount of the equity award is calculated using the faculty portion of the base salary.  First remove the department chair stipend, adjust the new base rate, and then recalculate the department chair stipend amount.

Additional Information

What is the philosophy behind Fresno State's Campus-Based Equity Program for Faculty?

Equity salary increases represent permanent increases to a faculty member’s base salary. For our program at Fresno State, we are evaluating the effects of low starting salaries; the compounding effect of no General Salary Increases or Salary Step Increases, especially for those who were promoted after an extended period following this circumstance; the impact of salary inversion and compression; in addition to salary lag within departments or colleges for internal positions where faculty are similarly situated.

What is salary inversion?

Salary inversion occurs when the starting salaries for faculty are higher than those for existing faculty. This can commonly occur when other regions or systems are seeing regular salary increases that increase the market rate for new hires. Salary inversion is prevalent in higher education where the demand for faculty is increasing rapidly following several years of small hiring groups. Inversion was further elevated when the CSU system lacked the funds to provide bargained General Salary Increases or Service Step Increases to existing faculty while increasing the number of new faculty hires.

What is salary compression?

Similar to inversion, salary compression can occur when there is a small or no difference of pay between faculty regardless of their years of service and/or experience. Inversion can contribute to compression as faculty may be hired at levels which eclipse the historical rates given to existing faculty. Compression can also occur when faculty apply for a market-based salary increase based on an offer of employment from another institution.