GIM 25
Provision for Estimated Salary Increases

SUBJECT: Provision for Estimated Salary Increases

SUPERSEDES: GIM 25 (Revised December, 1995)

RELATED INFORMATION: GIM 1, especially Section III, D.

It is common practice to include a provision for anticipated salary increases in grant and contract proposal budgets. The increment varies over time and among employees, so specific information should be used where available. Otherwise, the following information can be used as a general guide.

The 1997 Legislature has appropriated funds for salary increases averaging 3% for all faculty, teaching and research assistants, professional staff, and librarians effective July 1, 1997. For WPRB classified and contract classified staff, funds for a general, across-the-board salary increase of 3% were also authorized. In addition, for faculty, teaching and research assistants, professional staff, and librarians, higher education institutions were given optional authority to provide additional average increases of 1% on July 1, 1997, and 2% on July 1, 1998. The President has decided to exercise this optional authority for 1997 and anticipates exercising the option to implement a 2% increase in July, 1998, although the policy for its allocation will not be determined until next year. For teaching and research assistants, the 4% increase will be distributed across the board and implemented centrally. The 3% general increase for all classified staff will also be implemented centrally.

For proposal budgets extending beyond June 30, 1999 it is suggested that annual increases of 4% be used for all employee classifications unless more specific information is available in a given instance. In the case of classified employees, mandatory step increases should also be budgeted if the employee has not reached the top of the range.

Questions concerning this or other budgeting issues may be directed to Office of Sponsored Programs, extension 3-4043.

Donald W. Allen, Director
Office of Sponsored Programs