Here is my understanding of the Governor's state employee salary proposal and how it applies to faculty.
First, he is proposing a one-time bonus, which will be 5% of your annual salary. This money will be paid in April 2012 and applies to faculty. This bonus is intended to ameliorate the loss of purchasing power we suffered for the last three years with no pay increase. He admits that if we received 3% each of the last three years, our base would 9.3% higher, so this bonus does not make us whole.
Second, he is proposing a salary increase of 3% to base for state employees. Of course, for faculty, this three percent constitutes the pool for which we compete via the formula of market, merit and institutional priority. From information that I have heard, the BOR and universities will contribute an additional 1 to 2% increase to this pool.
From all indications, many legislators in both parties have said their primary priority this legislative session is to take care of state employees. They say we have suffered enough and they will try to raise salaries. Coupled with the terrific revenue numbers so far this year, I expect we will get something close to this proposal. Of course, if South Dakota's economy tanks between now and March, all bets are off.
Thank you for membership in COHE and all you do for higher education in South Dakota. I appreciate your hard work and effort!!!
Your brother in defense of faculty rights,
Gary Aguiar