MEMORANDUM 

TO:      Vice Presidents, Deans, and Separately Reporting Directors

FROM:      Kim Wilcox, Provost

SUBJECT:      University-Level Market Adjustment Funding Pool FY 2008-09

The 2008-09 budget included a provision for a $2.3 million, or 0.5-percent, market salary adjustment targeted for ranked faculty but open to all faculty and academic staff.  The Office of the Provost will administer the market pool, and market increments will be effective October 1, 2008.  The intent of this program is to recognize highly marketable ranked faculty and academic staff in a timely manner, and, in so doing, encourage long-term commitment to this university within the context of an increasingly competitive national market.

The guidelines relate only to the university-level market pool of 0.5 percent as described here.  Specifically, each responding administrator should develop a request for the college or MAU.  The individuals included in the request should meet the criteria listed below.  In the face of limited resources, proposals should be targeted to areas of highest need with regard to individual market issues, and should not exceed 0.7 percent of the ranked faculty salary base on the raise list.  Of necessity, the Office of the Provost will balance allocations in light of differential needs across units to assure that the total program does not exceed 0.5 percent.

The following criteria must be met for individuals to receive market adjustments:

1. Only faculty who have been consistently judged to be very meritorious by peers at MSU or at comparable institutions should be considered.  Merit is based on the same criteria as applies to promotion, tenure, or post-tenure review.  Typically, these individuals are also recipients of consistent merit adjustments above respective unit averages [overall and/or by rank] over the past three years inclusive of the October 1, 2008 general merit adjustment (include salary history for individuals and relevant unit and MAU averages).
   
   
2. While the program is targeted for ranked faculty, academic staff may be recommended with appropriate supporting information.  Proposed adjustments for academic administrators must be based on their role as a faculty member.
   
   
3. Existing salaries are at levels that may not be competitive with peers (include salary comparisons across peer departments or colleges if available).
   

Proposals should be submitted to the Office of Planning and Budgets and include documentation to support the individual cases.  In order for this program to be effective, the minimum award proposed should be $1,000, and the total number of individuals included in the proposal should constitute no more than 20 percent of the tenure system faculty in the college or MAU based on the 2008-09 raise list.

Colleges and MAUs wishing to submit proposals for market adjustments based on the criteria set forth above must do so according to the following timetable:

1. All initial market proposals should be submitted to the Office of Planning and Budgets, 321 Administration Building, by 5:00 p.m., Friday, August 8.  Proposals should include a prioritized listing of proposed recipients and associated market increments.  In addition, include a brief summary of the college proposal including total funding requested and the total number of tenure system faculty recommended for a market increase.
   
   Generally, market adjustment funding requests should be initiated and reflected entirely within the college responsible for the faculty member’s primary appointment and be based upon full salary regardless of currently existing research support.  If appointed on a continuing basis through either MAES or MSUE, the funding request should be footnoted to reflect support required from the noted units.  Further, MAES and MSUE should be consulted with regard to market recommendations for such faculty.
   
   
   
2. The Office of the Provost will consider the proposals and by Friday, August 22, will review with colleges and MAUs the amount of market salary adjustment funds to be allocated and related issues or concerns.
   
   
   
3. Colleges and MAUs will then make related adjustments and the final market lists are due in the Office of Planning and Budgets, 321 Administration Building, by Friday, September 5, so that increments may be reflected in checks for the month of October and related budget allocations processed.

If you have any questions regarding the administration of the process, please contact David Byelich at 5-9271.