April 2005 Newsletter
Priscilla Thain, Newsletter Editor

PROFS' Testimony to the Joint Committee on Finance

On March 17, PROFS President Richard Burgess (Oncology) testified before the Legislature's Joint Committee on Finance. His testimony included the following:

I would like to express PROFS' support for two provisions in the governor's budget. If the Legislature would choose to enact these provisions, or similar provisions, they would provide a much-needed boost to the university's efforts to recruit and retain top faculty. The provisions I am referring to are:

1. The $5 million the governor has earmarked for competitive compensation for UW faculty; and

2. Domestic partner coverage for UW faculty and staff.

On the issue of compensation, it is vitally important that the state send a message to the UW-Madison faculty, as well as university officials throughout the country, that it is serious about paying faculty in a competitive manner. UW-Madison faculty salaries have fallen to 7.3 percent behind the median salary of faculty at our peer institutions.

Make no mistake about it. Other universities and states are taking note of the fact that UW-Madison salaries are slipping further behind our peers. Other institutions are pursuing our faculty, and we are losing very good people in increasing numbers.

Why should you and the rest of the state care about paying UW-Madison faculty in a competitive manner? There are many reasons. UW-Madison faculty
members bring in, on average, $250,000 in federal research funding annually, which has a huge multiplier effect on the state. The university's 2004-05 budget includes a great deal more federal funding ($526 million) than state tax more dollars ($370 million).

UW-Madison's economic impact on the state is estimated to be at least $4.7 billion annually. At least 218 Wisconsin companies have been started as a result of ties to UW research done by faculty. These companies employ more than 7,000 people and have gross revenues of well over $1 billion.

And momentum for business growth is building, as an average of 13 companies have been formed from the research at UW-Madison in each of the last five years. Forbes magazine recently rated Madison the best place in the nation to launch a business or career, due in large measure to the presence of the university.

What does it mean for a department to lose one of its top faculty members to a competing institution? There is a staggering cost. The colleagues we lose are usually the top, most productive mid-career faculty. They bring in considerably more than the average amount of federal research grants. For example, when we lose someone with $800,000/year in federal grants, they take that grant money with them. This represents a loss of salaries for research employees, and many dollars spent and re-spent in the state each year. Also lost to the university is $360,000 in additional indirect costs (45.5% of direct costs) that are critical to the support of the research infrastructure. Very significant faculty and staff time is lost in searching the country for a suitable replacement (the process usually takes a year or more). Then, if our offer is not competitive, we are unlikely to be able to attract our top choice and often have to start the process all over again.

When a new hire does arrive (almost always at the Assistant Professor level) he or she will likely not successfully attract the level of research support that was lost for 3-5 years at the minimum. Also it will take years for him or her to develop his or her research and teaching skills and knowledge of the university and the state to the level of the faculty member we lost.

The UW-Madison faculty recognize that Governor Doyle and the Legislature face a difficult challenge in attempting to reconcile the many budget needs facing our state and at the same time meet your responsibility to deliver a balanced budget. We know that you need to set priorities.

We also know that other states with major public research universities - states that face budget deficits just as bad or worse than ours - are also setting priorities. And those states are sending a message loud and clear: we want to attract and retain top faculty by providing them with competitive pay.

Unfortunately, over the last two years, Wisconsin has not risen to the competitive challenge. Pay plans of zero and 1.35% have caused our median salaries to drop even farther when compared to our peers.

Together with a solid pay plan, the competitive compensation fund will make it clear that Wisconsin is again getting serious about paying its faculty in a competitive manner.

Providing domestic partner coverage would be another way to make UW-Madison more competitive with other universities. The fact is that, right now, we stand out like a sore thumb for not providing this coverage. Every other Big Ten university provides coverage, and more than 150 colleges and universities throughout the country do as well.

Domestic partner coverage is also becoming more common for both private and public employers in the state. Proctor & Gamble in Green Bay, S.C. Johnson in Racine, United Parcel Service statewide, Northern States Power, the City of Milwaukee, and the City of Madison have all joined the growing list of employers
that provide coverage. It is time for the UW to be
added to the list.

We recognize and thank you for your past support of the UW-Madison faculty. Competitiveness in attracting and retaining outstanding faculty should be viewed not as part of the budget problem, but as a solution to the future economic success of the state.

Thank you.

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