1. In the Spring, basic budget-making parameters are established, working with the legislative appropriation (e.g., "The U. of MN will have 5% increase for salary enhancement"), guidelines and policies from the Twin Cities (e.g., "All faculty will receive a 2% across the board base increase, and the remaining 3% will go into a Merit pool"), and campus priorities, including projected equity issues (e.g., "UMM will seek to move all faculty ranks into the AAUP '1' category"). Prior to the legislative budget appropriation process in odd numbered years, the University creates a salary/compensation strategy for the biennium. All this information is summarized for the administration by the Vice Chancellor for Finance, then communicated to the Division Chairs by the VCAA.

2. Faculty and "P & A" salaries come from the same pool.

3. The office of the VCAA prepares budget worksheets for the DCs along with communicating basic guidelines: these worksheets include last year's salary and appropriate tools for entering and calculating next year's (e.g., in the example above, a column showing the automatic 2% cost of living addition to the prior year's salary).

4. The Chancellor, in consultation with the Dean and Division Chairs, will normally retain a fund which in recent years has been 1/2 of 1% of the faculty and P&A salary pool for equity and other discretionary adjustments.

5. Division Chairs prepare salary recommendations. Certain raises are mandated: for the awarding of tenure and promotion to Associate Professor: $1,500; for the promotion to Professor: $2,000.

6. Each Division Chair, separately, meets with the Chancellor and the VCAA to discuss his/her recommendations. The VC for Finance attends these meetings.

7. The Dean plays the role of Division Chair for faculty classified as "Interdisciplinary" and for academic affairs P&A employees (e.g., library staff, academic directors), and consults the Education Division Chair for salary matters dealing with coach/teacher positions. In the setting of coach/teacher's salaries, the opinion of the VC SA is also consulted. The other vice Chancellors and the Chancellor make salary recommendations for P&A individuals reporting to them.

8. Final salary budget sheets are submitted by the Chancellor to the VC for Finance, Dean and Division Chairs. This should take place before final budget materials are required for the Twin Cities, and, optimally, in time for faculty to be notified of their salaries prior to the end of the academic work year.

SS 9/96