1977 PAY SUPPLEMENTAL Mr. FLOOD. You are requesting $562,000 to cover the 1977 pay raise. In percentage terms, how much is that per employee? Mr. SCHUCHMAN. That is 5.5 percent, sir. Mr. FLOOD. What does 5.5 percent represent? Is it a minimum or what is that? NONFACULTY SALARY STUDY Mr. SCHUCHMAN. As you may know, Congressman, we no longer ask for our increase for our nonfaculty staff along with the Federal employees. Instead we have developed our own salary system. We do use the Federal civil service salary schedule maximum as a maximum for our schedule. However, within our salary system now we have moved away from automatic step increases for our employees and have moved to a merit and performance system. So, an individual within our staff personnel system would be evaluated annually and if they deserve an increase they will get it; but there is no automatic step increase any longer. Hence, we are asking for a 5.5 percent increase for our staff; however, individuals may or may not receive an increase. NONFACULTY SALARY COMPARED WITH FEDERAL EMPLOYEES Mr. FLOOD. How does that rate compare with the increases allowed to Federal employees? Mr. SCHUCHMAN. Well, we have gone to this new personnel system in which we survey metropolitan area salaries and we include, of course, the Federal system as part of this institutional salary survey. Mr. FLOOD. How does the average rate compare with the increases that are allowed Federal employees? Mr. SCHUCHMAN. It's very close. In most of our positions in nonfaculty staff we are approximately second, third or fourth among area institutions of higher education. This 5.5 percent would allow us to maintain that position. Mr. FLOOD. How did you arrive at the rate of increase? COMPARATIVE STUDY OF NONFACULTY SALARIES Mr. SCHUCHMAN. We have surveyed colleges and universities within the Washington, D.C., area. We have surveyed industries in the Washington, D.C., area, nonprofit organizations and business organizations. Our surveys, looking at all of these institutions, industry, financial and nonprofit, indicates that the average increase is approximately 5.5 percent. Mr. FLOOD. Which institutions or organizations specifically did you use in comparing your staff salary levels? Mr. SCHUCHMAN. As for institutions of higher education, we included in our survey American University, Catholic University, Georgetown University, George Washington University, and Howard University, and the average increase across all of those institutions is 5.4 percent. Mr. FLOOD. Do all of your employees automatically get the pay increase? Mr. SCHUCHMAN. The general raise would raise the salary rank for all employees, and they would, in fact, yes, get this increase. All our employees are eligible to participate in this increase to the extent that their salaries do not exceed those paid for similar positions at other institutions. If their salaries do exceed this range, they would not receive the 5.5 percent increase. PROBLEMS IF SUPPLEMENTAL IS NOT APPROVED Mr. FLOOD. If this supplemental request is not approved, could you go ahead with existing funds or would you not grant the pay increase to the employee? Mr. SCHUCHMAN. No, sir, we would not be able to do this at all. In fact, if that happened, then our salary schedule would actually fall behind, and we would no longer be competitive. Mr. FLOOD. There is still some concern that the salary levels at Gallaudet are generally higher than other colleges and universities. Now what information can you give us to show your salary levels are comparable to that of other institutions? Mr. SCHUCHMAN. There is a survey that was done among institutions of higher education in the Washington area this last spring by American University and in that survey it showed that we do have a few positions that are near the top of the salaries, but for most of the positions in the college we are either second, third, or fourth. As part of our personnel system, when we have found that a position is classified too high, we actually have frozen the salary of the employee, so that we do have staff members who are actually frozen at maximum highs for that position. We are in the process of trying to establish equity in those instances. So we do freeze salaries and we have reduced salaries for staff members for whom we think the salary is too high for the classification of the job position. Hence, as instructed by this committee, we have moved to implement a new personnel system. Our increases are not automatic, but we do need this 5.5-percent increase in order to maintain an overall competitive salary schedule. NEW SALARY BUDGETING STRUCTURE Mr. FLOOD. You remember last year the committee directed a change in the way you budget for the nonsalary increase costs. What we wanted you to do is use the same budget procedure that is used for faculty pay increases. Have you made that change in procedure? Mr. NANCE. Yes; we are starting with fiscal 1978, Congressman Flood. Mr. FLOOD. Do you think it's going to relieve you of some of the problems of budgeting these pay costs? Mr. NANCE. I think it's going to be all right. Sure, we don't really have any problem with that. We have to do our surveys and make our projections 2 years in advance when we submit the regular budget. instead of when we would submit the supplemental. This will make it somewhat more difficult to get good information as a basis for these projections. Mr. SCHUCHMAN. We do this with our faculty. We use the American Association of University Professors standard, and what we are doing now with the nonfaculty, as directed by the committee, is to do surveys of other institutions of higher education in the Washington area, in addition, industry, nonprofit organizations. So this will get us in a comparable situation in preparation of the budget. Mr. FLOOD. Mr. Natcher? ABSORPTION OF 1977 PAY SUPPLEMENTAL Mr. NATCHER. Were you required to absorb a part of the increased pay cost, as other agencies were required to do? Mr. SCHUCHMAN. No; I do not believe so. UNOBLIGATED BALANCE Mr. NATCHER. What was the unobligated balance of funds that your institution had at the end of 1976? Mr. NANCE. Whatever they were, Congressman Natcher, they would have been for construction, not for operation. All of our operating funds were obligated. Mr. NATCHER. All obligated? It would only be for construction. Mr. NANCE. That is right, sir. Mr. NATCHER. Would that be in the neighborhood of $8 million or $9 million? Mr. NANCE. I don't remember the exact figure on that. At the end of 1976 it was about $6 million, as I remember. Mr. SCHUCHMAN. It was $6,055,000. Mr. NATCHER. How do you know that you won't have unobligated balances this year to offset pay increases? Mr. NANCE. We maintain a very thorough accounting system, which is on an obligation basis. We send this information out monthly to departments, and to administrative offices. They know exactly what is available. Since the need is there they are going to have that money obligated. We always have our money obligated by the end of the year. Mr. SCHUCHMAN. Except for construction. Mr. NANCE. Yes, except for construction. Mr. NATCHER. As you go along now, we would like to have you examine your budget and let the committee know if you can absorb some of the pay costs, as you go along. Mr. SCHUCHMAN. We will be pleased to provide that information as we go along. Mr. NATCHER. All right. Mr. MICHEL. Yes, I have a couple of questions for Gallaudet. SUPPLEMENTAL PAY INCREASE No. 1, how come your pay raise is 5.5 percent instead of 4.8 percent like Howard? Did you ask that, Mr. Chairman? Mr. FLOOD. Probably not in that way. Mr. MICHEL. You were a little more gentle. Well, I figure I might as well come on strong this morning. Mr. FLOOD. I asked him to compare it with the other institutions. like Howard? Did you ask that, Mr. Chairman? Mr. FLOOD. They seemed to think so. Mr. MICHEL. Well, I will trust your good judgment. Mr. FLOOD. I asked for comparisons. Mr. SCHUCHMAN. We have done a survey of Washington institutions of higher education and our figures indicate the average is 5.4 percent. BREAKDOWN OF NONFACULTY SALARIES Mr. MICHEL. Could we have a breakdown of non faculty salaries as well as salaries paid at the institution you are comparing them with? [The information follows:] |