NAU budget approved; compensation plan still to be determined

The 2005-06 budget for Northern Arizona University approved by the Legislature and signed by the governor can be described as extremely modest.

NAU received funding for student enrollment growth, but that amount was then reduced in across-the-board travel cuts the Legislature placed on all agencies. The net increase for NAU is $550,400.

The Legislature addressed rising retirement costs by providing a 1.7 percent employee salary increase and also provided funding to cover the university costs associated with increasing health insurance premiums.

NAU President John Haeger is working with the President's Budget Group, Human Resources and the President's Cabinet to develop a compensation plan for faculty and staff that supplements the salary funding provided in the state budget. The president is expected to announce the compensation plan later this month.

Other higher education policy issues addressed in budget bills include:

  • requiring the Arizona Board of Regents to report on the advisability and options for implementing a tuition structure that limits tuition increases for continuing students to no more than inflation

  • requiring ABOR to report university enrollment as of the 21st day (as now reported for funding) and the 45th day and detail the advantages/disadvantages of using either count

  • requiring professors to certify class rosters detailing enrollment counts, including record of student withdrawals

  • expanding the University of Arizona College of Medicine into downtown Phoenix with the first class of 24 students beginning in fall 2006

  • providing funding to increase the capacity of nursing education programs at public universities and community colleges

  • expanding the medical school student scholarship program administered by the Board of Medical Student Loans at the University of Arizona.

In addition, several bills related to the Arizona State Retirement System were approved and further analysis of the provisions is under way.

For other legislative developments, see "Legislature Wraps Up" in this issue.
The deadline for the Wednesday newsletter is Monday at 5 p.m. When you send a news or Summit item to Mary.Lemma@nau.edu, remember to include who, what, when, where, and why or how.