Government Relations

UW System Position on Bills Introduced in the Legislature During the 2005-2006 Session

Pending Legislation

AB 1068

Executive Salaries & Nonresident Tuition

Full Description

(Nass) Prohibits the UW System Board of Regents from doing the following until July 1, 2007:

1. Increase the salary by more than five percent unless the increase is funded with gifts, grants, or federal revenue for the following positions: UW System president, vice presidents, associate and assistant vice presidents, chancellors, assistant chancellors, vice chancellors, associate and assistant vice chancellors, administrative directors, and associate directors.

2. Reduce nonresident tuition levels below the 2005-06 academic year levels.

Referred to: Colleges and Universities

UW System Position

OPPOSE:

1. The Board of Regents endorsed the President of the System initiating a review of current chancellor salaries for equity and competitive factors to respond to market factors. We are finding that we must offer new chancellors considerably higher salaries than we are paying current chancellors. Pay plan increases have not kept up with the market for our leaders just as they have not kept pace with market salaries for our faculty and academic staff. The bill would limit the Regents ability to respond to conditions of equity.

2. Nonresident undergraduate tuition has increased dramatically over the last five years largely as a result of the 5% annual tuition surcharges that were mandated in the 2001-03 biennial budget. These increases resulted in rates that are not competitive with our peers. For example, UW-Milwaukee’s tuition is $3,138 above its peer midpoint, and the UW comprehensive universities tuition is $2,592 above their peer midpoint. These noncompetitive rates resulted in a reduction of more than 900 nonresident undergraduate students over a three year period.

If the UW System is prohibited from setting nonresident tuition rates at competitive levels, the UW System’s long range plans to increase access for resident students will be in jeopardy. If nonresident tuition is not set at competitive levels, access for resident students could not be increased without additional new state resources. Because competitive nonresident tuition rates would cover the full costs of educating the student plus the equivalent of the state support for a resident student, increases in the number of nonresident students will also increase access for resident students.