Finance & Policy Planning
Committee Chair, 2011-2012: Nicholas Economides
The Finance and Policy Planning Committee sent their recommendations to the administration on matters pertaining to faculty compensation for the academic year 2012-2013 in December. For a number of years the merit pool for faculty salary increases has failed to keep pace with the cost of living in the New York Metropolitan Area. During the last nine years, 2002-2011, continuing faculty salaries increased at an average compounded rate of 2.38% yearly.
At the same time period, inflation averaged 2.91% yearly (compounded). Thus, the standard of living of faculty at NYU (salaries adjusted for inflation in the NYC metropolitan area) has deteriorated by 6.20% since 2002. In comparison with NYU tuition increases, the relative decline in NYU faculty salaries is much more pronounced. In the period 2002-2011, tuition increased at an average rate of 5.08% per year (compounded), approximately 214% faster than the average yearly (compounded) rate of increase of continuing faculty salaries, which was 2.38%.
Additionally, the administration has shifted much more of the burden of health care costs onto its employees, while raising rents on faculty housing. Faculty housing rents have increased on the average between 6 and 7 percent yearly, more than twice as fast as faculty salaries. After a number of increases in health care premiums and deductibles repeatedly over a number of years, faculty are asked to pay 8% higher premiums in 2012-13 after a 10% premium increase in 2011-12. To offset the real income declines for continuing faculty, the FSC recommended an increase of 6.20%.
The Committee provided a presentation of these recommendations at the Senate Financial Affairs meeting in early December.