Understanding the UW System's New Faculty Compensation Initiative
The University of Wisconsin System, encompassing 13 public universities across the state, has launched a significant effort to boost faculty salaries in critical areas. This move targets more than 2,300 tenure-track professors, associate professors, and assistant professors working in high-demand fields. Funded through the 2025-27 state biennial budget known as Act 15, the program allocates $27 million annually to make UW campuses more competitive in attracting and retaining top talent. At the flagship UW-Madison campus alone, 548 faculty members will see their paychecks increase starting in May 2026, with broader implementation across the system by summer.
This initiative comes at a pivotal time for higher education in Wisconsin. With roughly 68 percent of UW faculty earning below the median salaries of their peers at comparable institutions, retention has been a pressing concern. Departments in fields like engineering and health professions have struggled to fill positions, impacting program quality and student opportunities. By addressing these gaps, the UW System aims to align academic expertise with Wisconsin's evolving workforce needs.
Background on Act 15 and State Budget Support
Act 15, part of Wisconsin's 2025-27 biennial budget signed into law, represents the largest single increase in state funding for the UW System in over two decades—approximately $256 million more annually. This boost includes general pay adjustments for all state employees, but the $27 million specifically earmarked for faculty in high-demand fields stands out as a targeted investment. Lawmakers approved the allocation after the UW Board of Regents outlined a distribution plan in October 2025, which a legislative committee greenlit by December.
The funding formula prioritizes undergraduate student credit hours, ensuring larger campuses like UW-Madison receive substantial shares while smaller ones like UW-Superior get proportional support. This structure reflects a commitment to equitable growth across the system, from urban hubs to rural outposts. University leaders emphasize that these resources will directly benefit communities by strengthening programs that prepare graduates for in-demand careers.
Defining High-Demand Fields in Wisconsin Higher Education
High-demand fields are identified primarily through data from the Wisconsin Department of Workforce Development (DWD), focusing on the top occupations projected to experience strong job growth, above-median salaries, and numerous annual openings—all requiring at least a bachelor's degree. Universities map their academic programs to these using Classification of Instructional Programs (CIP) codes aligned with Standard Occupational Classification (SOC) systems from the U.S. Bureau of Labor Statistics.
Core examples include:
- Engineering disciplines such as software, civil, mechanical, and electrical engineering
- Health professions, encompassing nursing, biomedical sciences, and health administration
- Computer science and data analytics
- Accounting and business administration
- Education and teacher preparation
- Social work
- Veterinary medicine
- Graphic design and other creative technologies
Institutions can propose up to 15 percent of funds for additional fields backed by evidence like failed faculty searches or regional labor shortages. At UW-Madison, this extends to law, chemistry, physics, astronomy, and geosciences. Notably, $2 million at UW-Madison targets hires advancing 'diversity of thought' and free market principles, including classical liberalism and Western intellectual traditions in history, philosophy, and economics.
Funding Distribution Across UW Campuses
The $27 million is divided based on each campus's share of system-wide undergraduate credit hours. UW-Madison secures over one-third, or $9.6 million, supporting its 548 recipients. UW-Milwaukee follows with $3.4 million (12.6 percent of total), adjusted for fringe benefits at about 38.54 percent. The remaining 11 campuses receive between $341,000 (UW-Superior) and $7.1 million each, ensuring broad impact.
This targeted approach allows each university to tailor awards. For instance, at UW-Milwaukee, colleges nominated faculty based on market competitiveness, salary compression, equity, or exceptional productivity, with provost and human resources approval before UW System finalization.
Details of the Pay Adjustments and Caps
Individual awards are either base salary increases or one-time retention bonuses, but not both, capped at 20 percent of base salary to maximize reach. Base adjustments include a one-time payment approximating prior earnings differences, though not retroactive. Faculty must be actively employed on the implementation date, typically early summer 2026.
UW-Madison's raises for 548 faculty take effect May 3, with additional employees following June 28. These steps ensure swift deployment while complying with state guidelines prohibiting across-the-board distributions. The focus on tenure-line faculty underscores a strategy to bolster long-term research and teaching stability.
Addressing Faculty Retention Challenges
Retention issues have plagued the UW System, particularly in competitive fields. Data shows 68 percent of faculty lag peer medians, making it hard to compete with private institutions or out-of-state publics offering higher pay. High-demand areas like STEM and health sciences see frequent poaching, leading to understaffed courses and delayed graduations.
Mark Pitsch, UW System spokesperson, notes the funds 'address workforce needs that will benefit communities across Wisconsin.' This initiative builds on prior efforts, like general 3 percent pay plan increases, but zeroes in on shortages. Nationally, faculty salaries in public universities average around $100,000-$150,000 by rank, with UW often trailing by 10-20 percent in key disciplines per peer comparisons. UW-Madison salary data highlights this gap, prompting urgent action.
Spotlight on UW-Madison's Implementation
As the system's crown jewel, UW-Madison exemplifies the program's potential. Its $9.6 million supports raises across engineering, business, and health colleges, plus unique earmarks. The $2 million for 'free market solutions' and Western foundations aims to hire 8-10 faculty, complementing recent positions in conservative thought funded philanthropically.
Gillian Drummond, UW-Madison spokesperson, explains these as promoting innovation through private sector competition and Judeo-Christian influences on modern institutions. Over two years, hires in political science, law, and economics have advanced this diversity, with an endowed chair search underway pending gifts.
Stakeholder Perspectives and Broader Impacts
University leaders praise the flexibility, allowing data-driven decisions. Faculty unions and associations welcome the support amid workload increases from the budget, like standardized teaching expectations. Critics note strings attached, but overall, it's seen as a win for quality.
Students benefit from stable staffing, ensuring robust advising and research mentorship. Wisconsin's economy gains as aligned programs feed industries like manufacturing and healthcare, projected to need thousands of skilled workers annually per DWD forecasts.
Photo by Kier in Sight Archives on Unsplash
National Context and Comparisons
UW's move mirrors trends nationwide, where public universities combat faculty shortages amid stagnant state funding. California and Texas systems offer similar market adjustments, often 10-15 percent in STEM. UW's 20 percent cap is generous, positioning Wisconsin competitively. Recent Cap Times reporting underscores the strategic timing.
Future Outlook and Long-Term Strategy
With annual funding secured through 2027, the UW System plans ongoing evaluations, potentially expanding fields based on updated DWD data. Success metrics include reduced turnover, faster hires, and enrollment growth in key programs. Philanthropy will supplement state dollars, fostering endowed positions.
This positions UW as a leader in workforce-aligned higher education, promising sustained excellence for students and the Badger State.
