SR120

WHEREAS, numerous elements of the University of Hawaii are in critical need of substantial and immediate funding; and

WHEREAS, campus buildings are aging, and a large repair and maintenance backlog exists; and

WHEREAS, tuition is decreasing as a source of revenue to enable the University of Hawaii to pay for these priorities; and

WHEREAS, fall 2019 enrollment at the University of Hawaii was down by two percent compared to fall 2018, the ninth year in a row of decreasing enrollment; and

WHEREAS, nevertheless, the President of the University of Hawaii substantially raised the salaries of executive and managerial employees; and

WHEREAS, the Board of Regents can only authorize salary changes for three executive positions: the university president, the board of regents' executive director, and internal auditor; and

WHEREAS, under Board of Regents Policy 9.212 Executive and Managerial Personnel Policies, the President of the University of Hawaii has the authority to adjust all other executive and managerial employee salaries; and

WHEREAS, the President of the University of Hawaii used this authority to grant several of his top-level executives double digit pay raises in 2019; and

WHEREAS, the faculty of the University of Hawaii only received a modest two percent raise in July 2019 as a part of their collective bargaining agreement; and

WHEREAS, the funding for the President of the University of Hawaii's executive and managerial pay raises came from legislative general fund appropriations made to fund the 2017-2021 collective bargaining agreement with Unit 7 of the University of Hawaii Professional Assembly rather than tuition; and

WHEREAS, all salary increases add to the University of Hawaii's base budget, which is paid for by general funds; and

WHEREAS, general fund appropriations are taxpayer moneys; and

WHEREAS, the University of Hawaii needs to systematically address shortcomings in its system of compensating executive and managerial employees; and

WHEREAS, the University of Hawaii should consider merit bonuses rather than high salary raises; and

WHEREAS, salaries for departing executive and managerial employees should not carry over and apply to the next person who assumes that position, as is the case with the new University of Hawaii football coach; and

WHEREAS, when considering the performance of top-level executive and managerial employees, their performance must be evaluated relative to the overall success of the University of Hawaii; and

WHEREAS, the Board of Regents are responsible for the governance and performance of Hawaii's only public university; now, therefore,

BE IT RESOLVED by the Senate of the Thirtieth Legislature of the State of Hawaii, Regular Session of 2020, that the Board of Regents of the University of Hawaii is urged to adopt a policy of carefully reviewing the compensation and benefits packages of candidates for executive and managerial positions; and

BE IT FURTHER RESOLVED that the Board of Regents consider changing the compensation policy for executives and managers from discretionary high salary increases to a merit-based bonus system; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to Chair of the Board of Regents and President of the University of Hawaii.

	OFFERED BY:	_____________________________

Report Title:

BOA University of Hawaii; Review Compensation and Benefits Packages; Executive and Managerial Candidates

THE SENATE	S.R. NO.	120
THIRTIETH LEGISLATURE, 2020
STATE OF HAWAII