“Triple Win” Summer Compensation A Proposal from

Transcript:“Triple Win” Summer Compensation A Proposal from:
“Triple Win” Summer Compensation A Proposal from the Ad Hoc Committee on Summer Compensation for Faculty Members of the Committee Dr. Cindy MacGregor, Chair W.D. Blackman – COAL Tim Flannery, CHPA Steve Foucart – CFO Julie Masterson, Dean, Graduate College Arbindra Rimal, Darr Timson, Benjamin CHHS Huang, Shyang, CNAS Current System The current system of funding faculty to teach during the summer session is constrained by cost center summer budgets. Additional courses cannot be taught because the summer budgets are capped. Faculty are limited in the number of courses they are allowed to teach during the summer based on what cost centers can afford. Faculty Handbook The Faculty Handbook prescribes faculty are paid at least 2.5% of their base salary per credit hour taught, provided minimum enrollments are met. No other exceptions to the 2.5% are allowed by the Faculty Handbook. “Triple Win” Outcomes More potential course options for students, More potential income for faculty (through teaching more courses and sharing profits) while honoring Faculty Handbook, More potential revenue for the university (including departments and colleges) while protecting financial costs. Other Potential Benefits Removing the cap on summer instruction could be a recruiting tool for new faculty who want to increase their income by doing summer work. The same could be true of seasoned faculty who want to increase their “top three” years of income. An improved summer compensation model could also be applied to intersession improving those offerings. Basic Summer Compensation Formula [(2.5% of base salary) + (2.5% of base salary x fringe percentage) + University Base Revenue Needed*] / tuition rate per credit hour = breakeven number of students *Committee is still working on this. This becomes the “overhead” for the breakeven formula. University Base Revenue Needed Per Credit Hour Offered Budget Goal for Summer Revenue Cost Center Allocations for Summer Faculty Salaries = Summer University Revenue Goal Summer University Revenue Goal / Credit Hours Offered for 2018 = Revenue Goal Per Credit Hour Offered  University Base Revenue Needed Per Credit Hour Offered University Base Revenue Needed Per Credit Hour Offered $7.5 Million – $3.97 Million = $3.53 Million $3.53 Million / Credit Hours Offered Summer 2018, i.e., 2684 = $1315. (university “overhead” per credit hour) Thus, if the same number of credit hours were offered in summer 2019 as in 2018 the university would be guaranteed the base revenue needed, i.e., $3.53 Million Example Salary =