Finance & Policy Planning
Committee Co-Chairs, 2012-2013: Marie Monaco & James Uleman
While the Faculty Senators Council is cognizant of the financial pressures on the University and the uncertainty created by the rapid expansion of the Global Network University as well as the added demands that may result from the recent disaster at the NYU Langone Medical Center, we nevertheless note that the merit pool for faculty salary increases has failed to keep pace with the increased cost of living in the New York metropolitan area over the last decade. The average compounded rate of increase in faculty salaries averaged 2.55% yearly over the last ten years, while over the same period inflation averaged 2.77%. By comparison, NYU tuition increases averaged 4.96%.
Additionally, benefits continue to decline in value. There has been a significant shift of the burden of health care costs onto the employees as well as substantial increases in the rent on faculty housing. Tuition remission benefits have been decreased and younger faculty will receive less in retiree health care benefits.
Taken together, the failure of faculty salaries to keep up with inflation combined with the decrease in value of benefits have the potential to adversely affect faculty morale, retention and recruitment.
To offset the decline in real income for continuing faculty, the Faculty Senators Council recommended an increase of 5.3% in this year’s faculty salary pool, of which all faculty receive a minimum corresponding to the amount of the NYC cost-of-living index.
Budget Parameters for 2013-2014
TO: THE NYU COMMUNITY
FROM: NYU President John Sexton
RE: The Past Academic Year, and the Year to Come
The economic pressures on universities, driven by the rising cost of benefits such as health care - which has a disproportionate impact on a personnel-intensive enterprise, such as higher education - and ongoing academic and technology investments continue to drive increases in the budget. As we do each year, we consulted on next year's budget with the Faculty Senators Council, the Administrative Management Council, and the Student Senators Council through the Senate Financial Affairs Committee, the Deans, and the senior administrative leadership of the University. We have brought the results of those consultations to the Finance Committee of the Board of Trustees. They are recommending to the Board of Trustees a budget for the coming year with the following parameters, which must still be approved by the Board in June.
Undergraduate tuition, fees, and room and board - For the 2013-14 academic year, we have budgeted an increase of 3.8% in tuition and mandatory fees, and 3.5% in room and board; the aggregate increase in the cost of attendance will be 3.7%.
Financial Aid - Undergraduate financial aid will increase by 4.0%. In addition, fully-funded graduate students will continue to receive full tuition remission; have premiums for their graduate health care plan paid by the University; and their minimum stipend will be increased by 3.0%.
Salary actions for faculty and for administrators - We expect the Board of Trustees to approve an Annual Merit Increase (AMI) pool totaling 3.0% for merit-based increases for faculty and 2.75% for administrators for academic year 2013-14. For administrators, as in the past, there will be a pool equal to 0.5% of the salary base for annual and “spot” bonuses for particularly meritorious performance.