Higher Ed Class & Comp Update ARCUPA April 12, 2018 Julie Bates, ASU System

Presentation Overview Current status of the higher ed classification plan Where we came from (understanding context) Moving forward together as all of higher education Next steps Presentation Overview

Current status of the higher ed classification plan

Act 599 of 2017 Higher Ed Class & Comp Act Act 599 allowed higher ed institutions to maintain status quo while state agencies transitioned to a new pay plan (Act 365 of 2017) Higher education made the proposal because of the unfunded mandate of transitioning to the new pay plan. State agency pay plan was funded. Working group formed to develop ideas and discuss issues that would be considered during next regular legislative session (January 2019) Act 599 of 2017 Higher Ed Class & Comp Act

Special thanks to all plus others who volunteered from these institutions: Bridget Fortenberry (UCA), Jennifer Smith (ASU System), Danielle Taylor (UAMS), Michele Burns (UAF). Bill Stovall and Shane Broadway participated from the legislative liaison group. Working Group

Purpose & Considerations of Group Discuss short-term vs. long-term needs Proposal must be acceptable to all of higher education & not cause undue hardship Group must consider that the 2nd year of productive funding will be implemented. Potential of (-1%) loss to RSA base Ultimate goal is to support our missions of educating students, research and public service by recruiting and retaining our human capital Purpose & Considerations of Group

Current status of the higher ed classification plan Where we came from (understanding context) Context of the Plan

Classified employee COLA and merit increases were governed DF&A and OPM Institutions were unable to develop a salary increase plan with all segments of the university considered For the executive recommendation for our authorized positions, the classified personnel request was reviewed by OPM and the non-classified positions were reviewed by ADHE Before the Transition

Classified employee COLA and merit increases are authorized by ADHE Institutions are now able to develop a salary increase plan with all segments of the university considered For the executive recommendation for our authorized positions, ADHE will review all positions – both classified and non-classified personnel After the Transition

The Stars Aligned Legislative priority for Presidents and Chancellors State was going in a new direction Understanding our challenges, ADHE was a willing partner and advocate Support from the Governor and OPM Higher ed had a focused goal as one united group Successful in communicating needs & benefits to the Legislature thanks to our sponsor, Rep. Les Eaves (Chair of Personnel) The Stars Aligned

Moving Forward Together Current status of the higher ed classification plan Where we came from (understanding context) Moving forward together as all of higher education Moving Forward Together

Providing greater flexibility for institutions in the current pay schedule to address market and entry-level salaries that are lagging Flexibility in the performance evaluation language Salary administration grids and labor market rates for higher education Position pools in the classified positions Big Ideas & Needs

Pay Schedule In effect since 2009 First four grades below minimum wage Usage of Base Level unclear What is the career level anyway? Pay Schedule

Take the parameters of our pay schedule and update to reflect appearance of state agency pay schedule(s) Adjust the pay schedule to account for minimum wage Consider an option to increase parameters by 1.8% (inflation rate) Pay Schedule Ideas

Flexibility in the performance evaluation language by mirroring the state agency pay plan language Salary administration grids and labor market rates for higher education (e.g. IT salary administration grid) Position pools in the classified positions (NEW) Big Ideas & Needs

Non-classified Pools

Proposed Classified Pools

Institutions may request to utilize the pools that are applicable to their needs Institutions are requested to consider whether creation of the pool will potentially create efficiencies and an ability to reduce the number of authorized positions To achieve transparency and remain consistent with non-classified pools, institutions will report the actual and budgeted utilization during the legislative budget process Institutions are requested to maintain consistency with the pools by eliminating titles from the pool but not by adding titles or creating new pools. Utilizing the Pools

Personnel Request Example

Next Steps Current status of the higher ed classification plan Where we came from (understanding context) Moving forward together as all of higher education Next steps Next Steps

Completing your personnel request strategically with consideration of efficiencies With the flexibility of the pool, can you - without disrupting future plans - eliminate some authorized positions? Understand the process of approvals – P&Cs, ADHE, Governor, and the Legislature Developing the message Next Steps