Dear Vice President Davis,
     On behalf of the UTK Faculty Senate Executive Committee, I would 
appreciate it if you could clarify some issues arising from a discussion 
that arose at our most recent meeting. As President Petersen and Board 
of Trustees members will be joining us for our annual Senate Retreat 
next Friday, September 8, we would greatly appreciate some clarification  
on this issue prior to that.
    In analyzing the UT budget document for Fiscal Year 2007, there 
are significant differences between various units in the changes in 
amounts directed towards Academic Salaries over last years estimated
expenditures. A summary table is given below. Vice Chancellor Barlow 
provided us with information on the allocation of the 3.6% increase
at UTK, all of which is allocated to Academic affairs, including 
the 2% raise, promotion raises, equity raises, and new faculty salaries.
Similar information was provided to us by Provost Holub from his
conversation with colleagues at UT Martin concerning allocations 
at UT Martin, and all the increase at UTM is budgeted for
similar items to those at UTK. 
     Vice Chancellor Barlow indicated that it was possible that other 
units might not be budgeting these increases in the same manner 
(e.g. mainly for raises and new faculty positions) and might be 
using these increases for non-Academic salary items. Can you 
provide us with information concerning this: 

(1) Are the budgeted increases in Academic Salaries at all units 
to be expended on Academic salaries or are these budgeted amounts
expected to be spent by some units on other operating costs?

(2) How are the priorities for differential allocation of the
budgeted Academic salary lines between units determined and in
particular how is it that the percentage increase was so 
different between units?

We would appreciate any information you can provide to enlighten
us on this issue, which is of considerable concern to the faculty
given the importance of the Academic Salary component of the budget 
in not only providing monetary compensation for our outstanding 
faculty but also in potentially enhancing our faculty expertise
given the large increases in students (and their level of 
preparation and thus expectations of faculty) which have occurred 
over the recent years.

    Sincerely,
          Lou

cc: UTK Faculty Senate Executive Committee
    Chancellor Crabtree
9/1/06

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Allocation of System Resources to Academic Salaries
    From Fiscal Year 2007 UT Budget Document

Changes to E&G Academic Salaries (Unrestricted) from 2006 
Note there is a separate line for Non-academic and Student Salaries 
and for Benefits

Unit          Proposed          % Increase     Amount of increase
             2007 amount       from 2006

UT System    $277.771M		6.6%	       $17.092M
 
UTK           120.495M		3.6%		 4.128M

UTSI	        2.817M	       17.1%		  .411M

Health Science
Center	      83.860M		8.6%		 6.631M

Agric Units   23.473M	       15.2%		 3.099M

UTC	      28.038M		5.2%		 1.396M

UTM	      18.403M		8.3%		 1.417M
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