Chancellor says KU targeting 5% pay increase for employees; tuition increase not yet off the table

photo by: Screenshot of meeting of the House Higher Education Budget Committee

University of Kansas Chancellor Douglas Girod is pictured on Feb. 8, 2021, speaking virtually before the House Higher Education Budget Committee.

Many KU employees are likely to get a 5% raise in the next school year, and the question of whether students will see a tuition hike is still an open one, according to the university’s chancellor.

University of Kansas Chancellor Douglas Girod said he expected the average merit wage increase at KU to be at or near the 5% level when the new fiscal year begins in July, even though Kansas lawmakers haven’t provided enough state funding to fully cover that increase.

“We would like to get as close to that 5% as we can,” Girod said in a brief interview with the Journal-World. “Jeff DeWitt, our CFO, is working budget models to model how we’ll be able to do that, but that’s our target.”

While the recently approved state budget doesn’t provide enough new money to fully cover the raises — KU likely will have to spend down some cash reserves to cover the difference — the new budget does provide a lot of new money to the state’s higher education system.

“This is the best higher ed budget we have seen in recent memory,” Girod said. “Obviously, that is really welcomed on all fronts.”

Kansas legislators and Gov. Laura Kelly earlier this week approved a basic state budget that includes $108 million in new funding for higher education. But the funding package leaves open several issues to be resolved until next week, when the Legislature reconvenes for its wrap-up session. Among those issues is whether legislators will add another $20.7 million in basic operating funds to the higher education system.

That $20 million question is expected to have implications on whether KU students next school year will face a tuition increase.

The governor earlier this year had recommended $45.7 million in new operating funds for the higher education system, and she said universities should be required to hold their tuition rates flat next year in exchange for the new money. Legislators, however, approved $25 million in new operating funds and kept the tuition freeze in place. Legislators did agree to consider funding the remaining $20.7 million in operating funds during their wrap-up session, which begins Monday.

Girod said he believed if the Legislature didn’t fund the additional $20.7 million that it would remove the tuition freeze.

“I believe they will do one or the other,” Girod said of legislators either providing the additional funding or removing the tuition freeze. “I don’t think they will leave it as is, and we have gotten some assurance from leadership that is the case.”

Girod said inflationary increases in expenses will make it too difficult for KU to hold tuition flat without the additional funding. Tuition increases require approval of the Kansas Board of Regents, but Girod said there had been preliminary conversations with Regents leaders that indicated the body would be comfortable with a modest tuition increase if the new funding doesn’t materialize. He didn’t provide details on how large that tuition increase might be.

Girod said he’s hoping the talk of tuition increases becomes moot. He believes there is a chance that the Legislature will approve the additional funding for higher education.

“The revenue numbers for the state were great that we just saw (Wednesday,)” Girod said of the latest tax forecast that increased revenue projections by $760 million. “Hopefully that will help them feel more comfortable to commit to the base funding and allow us to hold tuition flat for really the fourth year in a row.”