Bowles aims to raise faculty pay

(Nov. 20, 2006) Faculty are a university's greatest asset. Faculty recruitment and retention are critical to building the work force that is essential to North Carolina's success in a global economy.

Yet average faculty salaries at UNC-Chapel Hill rank at the 48th percentile when compared with the university's peer institutions.

Among faculty who left the College of Arts and Sciences last year, the average salary gain was 51 percent. An associate professor of chemistry went from a salary of $74,500 at UNC to $175,000 at Boston College. An associate professor of economics went from $90,900 at Chapel Hill to $145,000 at the University of Kansas. Talk about economics lessons...

But a plan offered by UNC President Erskine Bowles and endorsed recently by the Board of Governors takes steps to raise UNC faculty pay significantly over the next two years. "If we're going to be competitive, we’ve got to bring these great brains into the university – and keep them here once we get them here," Bowles told the Board of Governors.

Bowles' plan calls for an additional $116.8 million system-wide for faculty raises in 2007-08:

• $43.9 million as the first installment in a two-year, $87.8 million effort to raise UNC faculty salaries toward the 80th percentile when compared with peer institutions. UNC-Chapel Hill would receive $20.7 million over two years as part of this effort.
• $70.9 million in 2007-08 for an additional merit-based increase of 4% a year.
• And $2 million to match private funds for distinguished professorships.

"Should the legislature decide to fund our request, I am confident that we will be able to compete and compete successfully with the best and brightest," Bowles said.

Beyond funds sought to raise faculty salaries toward the 80th percentile, Bowles calls for 4 percent merit increases because other states can be expected to raise pay at peer institutions.

Benefits for UNC faculty are not competitive, so the salary component of compensation must be greater. "In general, we have worse benefits than almost any university in the country," Bowles said. "We thought we would attack the salary first and go for benefits at a later time."

Bowles also requests an additional $35.6 million for need-based financial aid in 2007-08. In 2006-07, the program will fall $12 million short of serving all eligible North Carolinians. The plan also seeks $61.7 million for new research and $13.9 million to recruit and train teachers.

Overall, Bowles and the Board of Governors want legislators to provide an additional $270.9 million for the UNC system – an 11 percent increase.

"This is a big budget. This is a bold budget. But now is not the time for small steps," Bowles said. "The world is getting smarter – a whole lot smarter – and we have got to get smarter with it."

Citizens for Higher Education intends to support Bowles' budget plan, with a special emphasis on faculty salaries, in the 2007 General Assembly.