M E M O R A N D U M


							November 22, 2011


TO:		Members of the Board of Trustees	

FROM:	Nancy L. Zimpher, Chancellor

SUBJECT:	Salary Adjustments for Management/Confidential Employees
		in the State University’s Professional Service

Action Requested

      The proposed resolution authorizes the Chancellor, or designees, to devise and implement a plan, at such time the Chancellor, or designees, deems appropriate, to provide salary adjustments, including deficit reduction leave, to SUNY management/confidential employees, on terms generally in accordance with the terms set forth in Budget Bulletin B-1197, and in accordance with SUNY policies and practice, as the Chancellor deems appropriate. 

Resolution

I recommend that the Board of Trustees adopt the following resolution:

Whereas certain collective bargaining agreements that have been concluded with State employee unions this year implement changes to salary and benefits for certain State employees, and for certain State employees excluded from collective bargaining, the Legislature has authorized the Director of the Budget to devise and implement a plan to make changes in salary and benefits of such employees, including reducing the basic annual salary of such employees for the time and at the rate established by such plan for the time period specified in such plan; and 

Whereas since the enactment of Chapter 552 of the Laws of 1985, as set forth in Education Law section 355(4)(b), the State University Board of Trustees has been vested with the 
Authority to determine compensation of SUNY management/confidential employees; 

Whereas pursuant to Ch. 491 L. 2011 and by Bulletin B-1197, dated November 14, 2011, the Director of the Budget has set forth a plan applicable to certain management/confidential employees in the Executive Branch which, among other things, will provide such employees the equivalent of nine days of deficit reduction leave to be used by March 31, 2013 but will result in reduced compensation for nine consecutive pay periods beginning in December 2011, the cash value of such reductions to be repaid to employees in equal bi-weekly installments over 39 consecutive payroll periods commencing in April 2015; and 
	
Whereas the State University wishes to support the Governor in making necessary, reasonable and rational adjustments in the salary and benefits of its employees, including SUNY-employed management-confidential employees; now, therefore, be it

Resolved that the Chancellor, or designee be, and hereby is, authorized to devise and implement a plan, at such time as the Chancellor, or designee, deems appropriate, to provide salary adjustments, including deficit reduction leave, to SUNY’s management/confidential employees, on terms generally in accordance with the terms set forth in Budget Bulletin B-1197, and in accordance with SUNY policies and practice, as the Chancellor deems appropriate. 

Background

      Since the enactment of SUNY “flex” legislation in 1985, authority to determine the compensation of all SUNY employees, including SUNY management/confidential employees, has been vested in the State University Board of Trustees, subject only to the provisions of collective bargaining agreements applicable to certain SUNY employees.   From time to time the SUNY Board has adopted resolutions to determine the compensation of its managerial/confidential employees, typically after conclusion of each round of negotiations with UUP.
      
      After each round of collective bargaining with State employee unions, legislation is enacted which authorizes and implements changes to salary and benefits for those employees and for certain State employees excluded from collective bargaining.  This year, Chapter 491 of the Laws of 2011, enacted on 8/17/11, among other items, authorizes the Director of the Budget to devise and implement a plan to reduce the basic annual salary, for the time and at the rate established by such plan for the time period specified in such plan, of employees in the Executive Branch who are in positions not in collective bargaining units. Pursuant to that law, by Budget Bulletin B-1197, dated November 14, 2011, the Director of the Budget has set forth a plan applicable to management/confidential employees in the Executive Branch which will impose on such employees reduced compensation for nine consecutive pay periods beginning in December 2011, and provide such employees the equivalent of nine days of deficit reduction leave to be used by March 31, 2013, and provide that the cash value of such salary reductions shall be repaid to employees in equal bi-weekly installments beginning in 2015.
      
      The proposed resolution authorizes the Chancellor, or designees, to devise and implement a plan with respect to SUNY management/confidential employees that is generally in accordance with the plan set forth by the Budget Director in Bulletin B-1197.  We expect that the Chancellor’s plan will no more onerous than the Budget Director’s plan.  The resolution preserves to the Chancellor the ability to take into consideration other relevant considerations, such as past actions of SUNY that have imposed furloughs on some SUNY management/confidential employees, and to monitor the outcome of on-going collective bargaining activities that impact other SUNY employees in the professional service, in order to determine with respect to management/confidential employees what salary adjustment and deficit reduction actions are most appropriate.
Board Resolution                                -3-		November 22, 2011