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University prepared for wage increase

Bigger budget won't decrease employment, officials say

By Jeff Engelhardt

Student Life Editor

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Published: Tuesday, July 1, 2008

Updated: Saturday, October 18, 2008

Kiley Nave is excited about the prospect of a little extra money in her pocket.

Nave is one of more than 3,000 student workers who will be affected a minimum wage increase starting today.

The minimum wage in the state of Illinois increased 25 cents from $7.50 to $7.75, causing a 3.3 percent increase in university department's budgets for student employees.

Nave, a senior from Arcola studying athletic training exercise science, said every penny matters with the poor state of the economy.

"The higher the minimum wage the better," Nave said. "Groceries and gas are getting so expensive and the old minimum wage isn't what it used to be."

Paula Clendenen, assistant director of financial aid, said past increases show the university should maintain its level of student employment.

Despite the minimum wage increase from $6.50 to $7.50 last year, the university still employed 3, 284 students, which is consistent with previous years' amounts, she said.

"Over the last two or three years, federal work-study hasn't changed, but as a whole the university hasn't declined in student employment," Clendenen said. "You may not have as many federal work study workers, but the overall number hasn't changed much."

One of Clendenen's responsibilities is to take the federal work-study money and distribute it to individual departments across campus. SIU has received $2.2 million in work-study funding each year for the last three years to supplement department's student employment budgets.

Lisa Marks, associate director of housing management, said the federal work-study money distributed to University Housing is a significant portion of its student worker budget, accounting for at least $60,000.

University Housing is one of the biggest providers of student jobs, with anywhere from 600 to 650 student employees. Marks said the 25-cent increase would create a roughly $65,000 increase in last year's $1.8 million budget.

Housing has prepared for the raise in minimum wage, Marks said. Raised rates in housing and meal plans will help fund the student employment budget.

"It's always a struggle in the budget, but we depend on our student workers so we will always accommodate them," Marks said. "It's a struggle to pay for higher education these days so the more money we can pay students, the better."

Mark Scally, associate athletic director, said the increase would not cut down positions or hours for student workers. In fact, he said, athletic administrators hope to expand the department's student employment.

The athletic department employs anywhere from 150 to 200 students, Scally said, and the increase could cost the department $10,000 more than last year.

As long as people keep buying tickets and supporting fundraisers, Scally said the department would continue to expand its student worker opportunities.

"Student workers are very valued here and one of our major commitments. We can't operate without them so it would be counter-productive to cut jobs," Scally said. "College students still need to eat and the price of bread isn't going down anywhere, so we want to help however we can."

Minimum wage is scheduled to increase two times during the next two years. By July 1, 2009, the minimum wage will be at $8 and $8.25 by July 1, 2010. Though minimum wage is expected to increase the next two years, Terri Harfst, coordinator of enrollment management, said the university would be prepared.

"When a full-time employee gets a three-percent increase, we don't expect to get laid off for that," Harfst said. "So we don't anticipate a three-percent increase in student wages to cause jobs to be cut."

Juan Garcia is not so excited about the change.

Garcia, a senior from Chicago studying finance, said he disapproved of the increase because there is no longer enough money to support all of the students who need federal work-study - and he is one of them.

"That little quarter won't help anything," Garcia said. "I would just rather have the $7.50 and keep federal work-study."

Jeff Engelhardt can be reached at 536-3311 ext. 268 or jengel@siu.edu.