1. Human Resources Update Collective Bargaining F&A Meeting October 26, 2011

2. Revenue Triggers ▸ All UMB Staff / Faculty CBA’s expire on 6/30/12, simultaneous to their last scheduled salary increases ▸ These contracts all included interim Memoranda of Agreement, pushing back initially negotiated raises by 12 months ▸ In lieu of delays, language was adopted allowing for retroactive awarding of original raises if certain state revenue targets were met

3. ▸ Pertinent Language: “ If state tax revenues for FY’10, FY’11 or FY’12 meet aforementioned targets, salary increases for that fiscal year will be advanced by six or three months”. ▸ Targets: FY’10: $19.45B for 6 months advance, $19B for 3 FY’11: $20.42B for 6, $19.95B for 3 FY’12: $21.44B for 6, $20.94 for 3 Revenue Triggers

4. ▸ UMASS Specific language: “ The calculation of state tax revenues will not include Federal stimulus funding or other one-time revenues, nor shall it include revenues from taxes or fees implemented …to balance the State budget. Retroactive salary adjustments …will be subject to appropriation…by the Legislature.” (Italics Added)

5. Revenue Triggers ▸ Executive Branch has acknowledged targets hit, based on their MOA language ▸ Most Executive Branch unions have entered into new 2 year contracts, commencing 6/30/12, with annual increases of 3% ▸ These new contracts do not include dedicated funding, nor do they include contractual adjustments short of Suffolk County Holiday revision

6. Revenue Triggers ▸ All UMASS unions have been advised that revenue targets were not met, consistent with applicable language ( $250M short ) ▸ Absent a dedicated funding source, UMASS will not entertain contract extensions similar to those engaged by the Executive Branch ▸ UMASS unions have been advised of interest in commencing negotiations for a successor agreement

7. Next Steps ▸ Monitor FY’12 revenue triggers ▸ Assemble bargaining priorities ▸ Negotiate successor agreements ▸ Seek Legislative funding