State Department of Finance and Administration Suspends Cost of Living Raises for 2011
Non-classified employees at Arkansas State University will not
begin receiving on July 1 the two percent cost of living adjustment
(COLA) or other raises for fiscal year 2011, according to a statement
made Thursday by Richard Weiss, director of the state of Arkansas
Department of Finance and Administration.
The two-percent cost of living adjustment was approved by ASU's
Board of Trustees in the board's meeting on May 7. The suspension of the
pay raises affects state agencies and all state-supported institutions
of higher education. Weiss' statement says that the state's official
forecast of general revenues for fiscal year 2011, which begins July 1
of this year, triggered the action.
"I am very disappointed in this turn of events because of the
adverse effect this will have on our non-classified faculty and staff,"
said Chancellor Robert L. Potts. "Classified staff will have the second
half of the pay plan implemented on schedule as previously approved by
our Board of Trustees.
"Our non-classified faculty and staff, who have been dedicated
and worked hard for the benefit of the university, also deserve to have
wage and salary adjustments that at least address the reduction of
buying power caused by inflation each year. They received no raise this
year, and now we are being required to defer raises that have been
promised to them beginning July 1."
Chancellor Potts went on to say, "The ASU-Jonesboro
administration has every intention of following through on implementing
these promised wage and salary adjustments retroactively to July 1,
2010, if and when permitted to do so by the director of the Arkansas
Department of Finance and Administration.
"To that end, we will escrow for that purpose the money that has
been allocated in our budget to implement these increases. We remain
hopeful that the economy of Arkansas continues to improve and that these
raises can be implemented retroactively as early as possible in the new
fiscal year."
In a meeting of the ASU Board of Trustees, Friday, June 18, the
board approved the administration's recommendations. Board member Mike
Gibson of Osceola stated, "We need to do this. We've made a commitment
to our faculty and staff."
According to Weiss' statement, "The pay plans will remain the
same as Fiscal Year 2010...it has been determined that the FY2011. . .
cost of living adjustments (COLA) will be suspended at this time . . .
[and] will not be applied to employees' June 30, 2010 salaries." The
document went on to say that, in addition, annual career service
recognition payments and classified and unclassified employee merit
increases will be suspended for fiscal 2011.
However, these decisions will be reconsidered if the Arkansas
economy has improved after the first two quarters of 2011.
Weiss' statement says the decision to suspend raises is in
accordance with Arkansas Code 21-5-211 and Act 688 of 2009.