ON THE FRONT PAGE

Schwartz proposes campus wage freeze

BY EMILY OUZTS

Faculty and staff at Cleveland State University face a wage freeze as school officials brace for next year’s rough economic climate.

Former CSU President Michael Schwartz recommended the move in a letter sent to employees June 29, citing “continuing stress to University finances,” including reductions in state funding and higher utility bills.

The CSU Board of Trustees must approve the wage freeze, as well as four unions representing university employees. Although a vote is set to take place at the next board meeting July 23, most budget deliberations hinge on the completion of the Ohio state budget, which determines the amount of funding CSU will receive in 2010.

The university has issued spending cuts and hiring restrictions in the past year, attempting to balance its own budget. But financial challenges at the state level may pose a threat to CSU’s solvency, as state support makes up nearly half of the university’s operating budget.

Faced with a $3.2 billion budget deficit, the state may be forced to make unprecedented funding cuts in areas such as higher education, said Tom Long, director of budget and financial analysis at CSU.

“Right now, the [state subsidy] amount for public universities has not been reduced,” Long said, “but the state has suffered so much over the past year due to a fall in income tax and sales tax, and we’re watching to see if they’ll be going after areas that haven’t been cut yet, namely higher education.”

Though in terms of finances, Schwartz acknowledged that 2010 “appears to be even more challenging” than 2009, tuition rates are not expected to rise – at least not this year, Long said. The state’s mandated tuition freeze extends through academic year 2010-2011, but public universities could be permitted to raise tuition for fall 2011.

“I think we will get by [this year] without an increase in tuition,” said Long, “but it remains to be seen what will be in the budget for next year.”

If approved, CSU’s wage freeze would extend to all university professors, officials, clerical and operational staff. Both union and non-union employees would be affected. Long said, “but the state has suffered so much over the past year due to a fall in income tax and sales tax, and we’re watching to see if they’ll be going after areas that haven’t been cut yet, namely higher education.”

Though in terms of finances, Schwartz acknowledged that 2010 “appears to be even more challenging” than 2009. Tuition rates are not expected to rise – at least not this year, Long said. The state’s mandated tuition freeze extends through academic year 2010-2011, but public universities could be permitted to raise tuition for fall 2011.

“I think we will get by [this year] without an increase in tuition,” said Long, “but it remains to be seen what will be in the budget for next year.”

If approved, CSU’s wage freeze would extend to all university professors, officials, clerical and operational staff. Both union and non-union employees would be affected.

Attempts to contact union representatives for comment were unsuccessful.