All Ball State University student employees will make at least $5.85 an hour after July 19 because of a federal minimum wage increase plan passed on May 24. The plan will increase the minimum wage to $7.25 an hour by 2009 in a three-step process.
The current campus minimum wage is $5.50 an hour, according to Ball State's Web site. Larry Beck, associate director of the Career Center, said the majority of student jobs pay the campus minimum, but some high-skill jobs pay up to $7.50 an hour.
The Career Center's primary concern will be updating the payroll system so all student wages comply with the increase, Beck said. During the 2006-07 academic year, 4,000 to 4,500 students worked in on-campus jobs, he said.
"Initially, that's going to be a chunk of money to get students up to [$5.85]," Beck said.
The university will decide what to do about students who make higher wages in the future, he said.
The campus minimum wage has increased twice in the past ten years. The first increase came as a result of a 1997 federal mandate, and the second increase to the current level was determined by a variable wage plan that was approved by the university in 2002, Beck said.
Budgets were not affected by increases in the past, Beck said.
"For the last two wage increases, no departments got increases in budgets," he said. "No additional money was given to [any department]."
Randy Sollars, director of University Budgets, said no changes will be made to current budgets after the minimum wage increase. The two main sources for revenue for budgets, state appropriations and student fees, have already been determined for the 2007-08 academic year, he said.
"The budgets are more than likely going to change in the future," Sollars said. "It's fairly hard to increase the current budgets."
Sollars said that despite not being able to change the current budgets, there are other ways to address the problem.
"Departments can cut expenditures in other areas," he said. "[The departments] will have to make the decisions and changes themselves."
The Office of Business Affairs will help departments determine how to handle the wage increases in the future, Sollars said. The university will implement a plan for the 2008-09 school year that all departments will be required to follow.
Senior Tyler Knecht, who currently makes $5.50 an hour as a computer lab assistant, said the increase shouldn't affect how much he makes because it is a relatively small amount. If budget issues cause student workers to have less hours, however, Knecht said it could cause some problems.
"I rely on the money I make quite a bit to help pay rent and utilities," Knecht said. "If my hours are cut, I would consider getting a different job."
Ball State officials will have a year to decide what changes to make before the next wage increase. The second minimum wage increase to $6.55 an hour will be due by July 24, 2008.
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