Given the confusion surrounding the recent announcement on faculty salary increases, I asked Stacy Pearson to provide more information.  Her response is below.

The state legislature did authorize a 3 percent increase for all employees. However, they provided some funding (approx. $7M of the $12M needed) and estimated that the University could make up the remaining $5M with tuition. However, that projected tuition revenue will not be realized for FY20. Since the 3 percent increase for classified staff is mandated, we calculated what could be funded with the remaining state funds, plus about $400k in new tuition revenue. That is how we came up with the 1.5 percent increase for faculty, professional staff and graduate students that could be funded without going into deficit. We intend to utilize all of the state funding for this purpose and will reevaluate our enrollment revenues for FY21. The table below shows these amounts:

assumed in state budget projected actual cost
New State Appropriations (Salaries/Foundational Support) 7M 7M
New Tuition 5M 0
Available for Salary Increases 12M 7M
Cost of Salary Increase
Classified Staff 2M 2M
3% Faculty, Exempt, and Graduate Student 10M
1.5% Faculty, Exempt, and Graduate Students 5M