UNTHSC president’s compensation outpaces peers

Administrative ranks have grown in recent years

The recession and its aftermath have left hundreds of thousands of families struggling to do more with fewer financial resources. People around the United States have cut their household budgets, postponed retirement, and cut non-essential purchases in order to stay afloat in the worst economy in decades. Higher education, though, often follows a different path. Instead of demanding shared sacrifices from administrators and faculty members, academic salaries have continued their upward trajectory in recent years.

As Dallas Morning News reporter Holly Hacker observed in a May 17, 2010 posting for the paper’s Education Front blog¹, “[P]ublic university salaries at all levels have been on a steep upward trend line in Texas and nationally -- the average salary has nearly doubled since 1994 -- and that coincides, not surprisingly, with a sharp increase in tuition.” The increase in tuition has also resulted from reduced state-level financial support for education across the country as state budgets have been squeezed ever tighter because of tax revenue shortfalls. With Texas facing an $18-21 billion budget shortfall for FY 2012-2013, pressure for tuition increases could build in the coming years.

The University of North Texas Health Science Center (UNTHSC) is not immune to these cost pressures. Some of its current management decisions, in fact, exacerbate these pressures. UNTHSC’s president receives a high level of compensation relative to peer institutions in Texas. In addition, while private-sector businesses have reduced their administrative costs, the administrative ranks at UNTHSC have grown in recent years. Let’s look at a few of the costs in greater detail.

Higher Compensation for UNTHSC’s President

Scott Ransom, the president of UNTHSC, earns $904,562, a figure that is 20% higher than the salary earned by the University of Texas System Chancellor, who has responsibilities and duties over four medical schools and the largest university system in Texas.² According to a September 18, 2010 report in the Star-Telegram, 277 staff members at the Health Science Center earn over $100,000 per year.³

Now, let’s analyze the compensation levels⁴ for the presidents of other medical centers in Texas and their institutions’ operating budgets⁵:

• UT Southwestern Medical Center, with an annual operating budget of $1.6 billion, pays the president $1,150,000 per year, i.e., 0.072% of the budget.
• UT Health Science Center-Houston, with an annual operating budget of $855.9 million, pays the president $1,050,000 per year, i.e., 0.122% of the budget.
• UT M.D. Anderson Cancer Center, with an annual operating budget of $2.8 billion, pays the president $1,003,140 per year, i.e., 0.036% of the budget.
• UTMB Galveston, with an annual operating budget of $1.5 billion, pays the president $805,465 per year, i.e., 0.054% of the budget.
• UT Health Science Center-San Antonio, with an annual operating budget of $759.7 million, pays the president $750,000 per year, i.e., 0.099% of the budget.
• UT Health Science Center at Tyler, with an annual operating budget of $123 million, pays the president $487,787 per year, i.e., 0.397% of the budget.

UNTHSC, with annual operating budget of $213 million,⁶   pays the president $904,562 per year, i.e., 0.425% of the budget. This is the most generous salary that a medical educator/president receives relative to the size of each institution’s operating budget.

Administrative Positions on the Rise at UNTHSC

In addition to the president’s high salary, UNTHSC’s administration has grown significantly. In 2007, for example, UNTHSC had a student enrollment of 1,153. In addition to 1 president, there were 9 vice presidents, 7 associate vice presidents, 1 assistant vice president, and 11 associate deans, for a total of 29 leadership positions. By 2010, with a student enrollment of 1,587,⁷ the numbers had risen by 13 positions. As of 2010, in addition to the president, there were 17 vice presidents, 5 associate vice presidents, 4 deans, and 15 associate and assistant deans, for a total of 42 leadership positions. These figures do not include department chairs and service directors. The salary total for the 40 positions, as posted at texastribune.org, is $8,808,517; this equals an average salary of $220,212 per position. Further expanding the administrative ranks at UNTHSC would simply add to the operating costs that Texas’ taxpayers will face in the coming decades.

In this period of funding shortfalls, universities should use their limited resources in a way that maximizes opportunities for students to gain access to higher education. Right-sizing top administrators’ pay and limiting growth in the administrative ranks are essential components of keeping education affordable into the future.

1 Hacker, Holly. “UNT Health Science Center chief earns big bucks—and he’s not alone.” May 17, 2010. URL: http://educationfrontblog.dallasnews.com/archives/2010/05/unt-health-science-center-chie.html

2 Hamilton, Reeve, et al. “Texas university professors, administrators paid well.” Texas Tribune, May 17, 2010.

3 Tinsley, Anna. “What D-FW and Texas public employees make amid tight budgetary times.” Fort Worth Star-Telegram, September 18, 2010. URL: http://www.star-telegram.com/2010/09/18/2478426_p2/what-dfw-and-texas-public-employees.html (downloaded September 22, 2010).

4 State of Texas, Comptroller of Public Accounts. “Salary Supplementation Report for FY 10.” Accessed September 26, 2010. URL: http://www.utsystem.edu/cont/reports_publications/SALSUP/2010salarysupl.pdf

5 Operating budget information from UT System Fast Facts, available on-line at http://www.utsystem.edu/news/fastfacts.html (downloaded September 26, 2010).

6 UNTHSC Town Hall July 12, 2010. Accessed September 26, 2010. URL: http://www.hsc.unt.edu/departments/presidentoffice/documents/2010.07.12TownHallFINAL.pdf

7 UNTHSC Legislative Appropriations Request (for Fiscal Year 2012-13), p. 2.