By execution of this agreement, the Governor's Office, Board of Regents, the Commissioner of Higher Education, and Montana State University-Bozeman pledge their commitment to enhancing educational quality and efficiency as well as raising faculty salaries to competitive market levels. A Productivity, Quality and Outcomes Agreement [PQ&O Agreement] covering the period of time from FY 94 through FY 99 was adopted to achieve these goals.

This plan, which was developed in collaboration with and approved by the MSU Faculty Council, includes a proposal for funding faculty salary increases contingent upon the fulfillment of the productivity, quality, and outcome requirements contained within the document. The proposed funding mechanisms for faculty salaries and educational quality enhancements include tuition rate increases, enrollment growth, a new type of faculty appointment, and faculty and administrative efficiencies.

There are factors critical to the implementation of the PQ&O Agreement which none of the parties control. The parties therefore recognize that reconsideration of the salary increases for FY 1998 and FY 1999 described in the PQ&O Agreement may be necessary if the productivity, quality, and outcome requirements are not fulfilled or if general fund appropriations, student enrollment (resident and non-resident), and millage revenue generates less combined revenue for those years than projected in the plan. Fulfillment of the collaborative efforts to enhance educational quality and faculty and administrative efficiency will also be reviewed in salary negotiations for FY 1998 and FY 1999. If a revenue shortfall occurs, the amounts allocated in the plan to pay faculty salary increases will not be reduced disproportionately.

The MSU-Bozeman administration and its faculty acknowledge that it is the employer's prerogative to determine the numbers and types of faculty positions. It is further acknowledged that in the event of a revenue shortfall, one option for financing the salary increases contained the PQ&O Agreement is to reduce the number of faculty. If it is determined that reduction of the number of faculty positions is appropriate, the MSU-Bozeman administration will seek the advice and cooperation of the MSU-Bozeman Faculty Council to accomplish this reduction within the guidelines set forth in the MSU Faculty Handbook.

If any party to this agreement believes the conditions specified for reconsideration of the salary increases included in the PQ&O Agreement for FY 1998 or FY 1999 have not been fulfilled, the exclusive mechanism to resolve the matter is negotiations among the parties. Implementation of the salary increases for FY 1998 and 1999 included in the PQ&O Agreement is not subject to enforcement through the courts or through the MSU Faculty Handbook grievance procedures. Either party may initiate such negotiations, and negotiations will commence within thirty (30) days from the date of the written request and continue until resolution of the issues of disagreement.

Dated this 29th day of September, 1995, and signed

• Governor Marc Racicot
• James Kaze, Chairman, Montana Board of Regents
• Jeffrey Baker, Commissioner of Higher Education
• President Michael Malone, Montana State University - Bozeman

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