State and local government employees have received or will receive what employees say are long overdue cost-of-living salary increases. State of Nevada employees are set to get a 12% salary adjustment effective July 1, 2023. 

Gov. Joe Lombardo signed the bill approving the increases on June 1. 

An error made by the Nevada Legislature in 2019, however, means that each Nevada System of Higher Education campus has to fund a portion of cost-of-living increases for teaching, administrative and research faculty.

The Nevada Legislature approved the increases at the erroneous, 2019 rate, and the NSHE Board of Regents will make the decision on COLAs. Regents will hear the matter at a special regents meeting June 30. 

In the meantime, professional higher education employees, including instructors, administrators and professors, remain in the dark about how much their COLAs will be over the next two years.

Faculty said “severe consequences” are possible if the COLAs are not fully funded.

Even with a 12% COLA this fiscal year year, and 11% the next, faculty will only be getting salaries at 2021, the Nevada Faculty Alliance noted. That’s because of inflation.

“We have been doing more for less pay,” the NFA’s officers wrote in an email to the regents. “Cutting COLAs to hire new faculty while driving current faculty away is a losing proposition. Better pay attracts and retains.”

“This is a unique moment in the system’s history, I think,” NSHE’s acting Chancellor Dale Erquiaga told the NSHE regents in March. 

Erquiaga last week said it is up to the Board of Regents to decide how much to fund.

“The Board may vote to give a COLA to all professional staff not to exceed 12 percent, effective July 1,” Erquiaga told This Is Reno. “Classified staff get 12 percent without a Board vote.”

The situation has colleges and universities in a bind: Each campus has to cover the costs, but a reduced COLA — 10% or less — will generate ire among employees.

“Anything less than a 12% COLA in year one of the biennium will be viewed as a betrayal, a loss of trust, and a lack of appreciation,” an anonymous TMCC official wrote to the regents. “I fully believe that being creative and finding ways to implement the full 12% COLA will outweigh the negative consequences of a 10% COLA.”

The percentage decided by the regents will apply equally across all NSHE institutions, Equiaga said. “Whatever amount the Board approves will go to all professional staff.”

Campus contingencies

Northern Nevada campuses had to develop contingency plans to meet the shortfall.

The Desert Research Institute will cover some costs with its indirect cost recovery funds. Some faculty will have to do more with less.

“A COLA is welcome for both administrative and research faculty,” DRI’s letter to the regents notes. “However, for some research faculty who have already submitted their [fiscal year] 24 budgets, it may be challenging in [fiscal year] 24.

“A twelve percent COLA means a twelve percent increase in project costs,” DRI notes. “For those unable to request additional FY24 funding, based on the COLA, they will need to do more research for less money during the first year.”

Truckee Meadows Community College will keep positions open and rely more on part-time instructors as full-time faculty retire.

“We intend to build reserves via turnover savings, which occur every year, along with leaving positions vacant for various time periods,” TMCC’s memo notes. “The vacancy savings will result from delayed recruitment/hiring with vacancies that range from three months to two years. 

“Moreover, when tenured faculty retire or separate, we will likely eliminate positions that can be taught by part-time faculty in the event that turnover savings do not cover ongoing COLAs.”

The University of Nevada, Reno will also leave open vacant positions. It needs to come up with $30 million if COLAs are approved at 12% this fiscal year and 11% the next.

“This will be felt in each functional area with a reduction in services such as limited library hours, fewer advisors, and limited custodial/grounds staffing,” UNR officials wrote. 

A 12% COLA at UNR also means UNR will eliminate 8.5 positions.

Student fee increases are not proposed — yet.

“In the long-term concerns about workforce contraction and workload impact on remaining staff are significant,” UNR notes. “While UNR’s current plans do not assume an increase in student fees, UNR would encourage a review of potential future funding options, including acceleration of [student fees for the fiscal year 2025], to allow the University to plan for a return to its normal growth and hiring cycle.

Erquiaga said campuses will be informed Friday of whatever the regents decide “once the Board has voted.”