The UC Board of Regents approved a proposed 2001-’02 budget for the University of California that would significantly improve wages and benefits for UC employees by increasing staff salaries that lag behind the marketplace and by expanding UC child care.

Meeting at UCLA Nov. 16, the regents also gave a nod to a new program to expand eligibility for UC retirement benefits to certain casual employees. This is the second year of a multi-year effort that the regents have taken action to improve UC’s ability to recruit and retain talented employees.

“As one of the largest public employers in the state, we recognize our obligation to find innovative ways to attract and retain excellent staff,” said UC President Richard C. Atkinson. “Today’s actions take a significant step forward by offering better wages for staff employees, a new child-care initiative to make UC more attractive to working parents and retirement benefits for thousands of casual employees.”

Among the key wage and benefit improvements in the regents’ 2001-’02 budget proposal are:

• An average 2% employee salary increase;
• Merit increases for eligible employees;
• 2% funding increase to improve salaries for staff and non-faculty academic positions where pay levels currently lag behind the market;
• 1% parity increase to keep faculty salaries market-competitive.

The actual distribution of salary increases will vary by compensation program and is subject to collective-bargaining requirements.

Earlier this year, the university supported a $19-million augmentation in the 2000-’01 state budget to raise the salaries of lower-paid employees. With their approval of the 2001-’02 budget proposal, the regents requested another $24 million to continue moving staff wages closer to market averages.

Another significant proposal in next year’s UC budget is the expansion of child- care services. To expand child care for the children of university staff, faculty and students, officials have requested $20 million in one-time state General Funds for the construction of new facilities.

Currently, the university serves approximately 2,000 children through these programs. However, another 2,000 children are on the wait list. The funding requested in the budget would enable UC to accommodate an additional 1,000 children each year.

Another initiative approved by the regents is a program to expand eligibility for the UC Retirement Plan (UCRP) to certain casual employees who work enough hours to qualify, with exceptions for per diem, temporary pool and student employees.

Beginning Jan. 1, 2001, a limited-term employee will become a UCRP member after accumulating 1,000 hours on pay status during a rolling 12-month period. Because eligibility for health and welfare benefits is based in part on UCRP membership, this change will result in expanded health and welfare eligibility for this group.

Also, the university is proposing granting career-employment status to casual employees who pass the 1,000-hour threshold. This proposed change must be negotiated with UC unions.

Taking other action, the regents swiftly approved an amended $148-million budget for plans, drawing and construction of UCLA’s southwest campus housing and parking project. The new graduate-student housing is expected to be completed in 2003. The new housing complex will be built on 15 acres bordering Gayley/Le-vering on the east, Veteran on the west, Strathmore on the north and Weyburn on the south in Westwood Village.

The first phase of the project will add 1,362 bed spaces, comprised of 523 two-bedroom/two-bath units, 316 studios and 1,430 parking spaces. Phase 2 of the construction will add 638 beds and 638 parking spaces.

UCLA officials will seek the regents’ approval of the environmental impact report for the project in January and hope to begin construction this summer.

Media relations officer Marisa Osorio contributed to this report.