STFA budget analysis shows STC has resources to raise faculty salaries to the statewide average

An analysis of South Texas College's budget commissioned by the South Texas Faculty Association /TFA reveals the college has the resources to raise faculty salaries to the statewide average for community colleges.

Dr. Leroy Dubeck, a professor of physics at Temple University, conducted the analysis by examining STC's audited financial reports for fiscal years 2002, 2003, 2004 and 2005. Professor Dubeck is one of the nation's leading authorities on college and university budgets. Among Dubeck's most important findings are the following:

• Between FY 2002 and FY 2005, STC's unrestricted net assets increased from $26,664,184 to $47,788,784;
• As of August 31, 2005, STC had $25,899,790 in "Current Unrestricted Funds," which had not been designated by the Board for any use nor placed in plant funds for future construction;
• In spite of a large increase in enrollment over the time period examined, the percentage of expenses for Instruction has decreased slightly;
• The college's 2005 Financial Report states "The College's financial outlook for the future continues to be positive." (Emphasis added.)

Dr. Dubeck agrees with the 2005 Financial Report, stating in his "Conclusions" that: South Texas College's financial position is strong. Its Unrestricted funds have increased from $26,664,184 as of August 31, 2002, to $47,788,784 as of August 31, 2005. Its Total Assets have increased from $68,670,571 as of August 31, 2002, to $121,494,599 as of August 31, 2005.

Although South Texas College's financial position is indisputably strong, faculty salaries continue to lag thousands of dollars behind the state average—no matter whose statistics you examine. For example, statistics from the National Education Association's Higher Education Research Center for FY 2005 show STC's average salary at $39,193 or $8,434 below the statewide average of $47,627. South Texas College ranked 53rd out of 63 colleges reporting data. Texas Community College Teachers Association (TCCTA) data for FY 2006 show STC's average salary at $41,853 or $3,344 below the state average of $45,197. TCCTA ranks STC 36th in average salary out of 46 institutions reporting data.

Based on the findings in Dr. Dubeck's review of the financial standing of South Texas College, the South Texas Faculty Association/TFA urges the Board of Trustees to approve a sixteen percent salary increase for the 2006-2007 academic year. A sixteen percent raise will move South Texas College next year near the projected average salary for community college faculty members in the state of Texas—about $47,000 annually on a nine-month contract. Based on the current total of 352 full-time faculty members, a 16 percent salary increase (including additional funding for benefits) would cost STC around three million dollars more in FY 2007 than in the current fiscal year.

TFA Executive Director Dr. Charles Zucker said, "It's clear from the Dubeck study that STC can afford the additional investment in faculty salaries without weakening the College's financial condition in any appreciable degree."

Professor Mary Aldridge Dean, President of the South Texas Faculty Association/TFA, added, "Each year STC loses many of its best and brightest instructors because they are lured away by community colleges offering them several thousand dollars more than what they earn here. According to the Faculty Senate President, last year we hired 40 new full-time faculty members but only had a net gain of 12. We are going to lose a ton of faculty members again this year to other schools unless the Board takes action to stop this ‘brain drain.' Don't our students deserve to be educated by a faculty that is as good as anywhere in the state?"

 

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