UW-Madison received an allocation of state funding for merit and market-based pay to attract faculty in high-demand fields of study as a result of 2025 Wisconsin Act 15. A significant portion of the funds allocated are to be used for salary base adjustments and one-time bonuses to address market and retention needs in high-demand faculty areas. See the Frequently Asked Questions related to the financial and budgetary aspects of this fund.
Act 15 Faculty Funds (Fund FD0114) Guidance for Finance and Budget Teams
There have been several questions about fund 114 so here is some helpful information for you in managing this funding source:
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Will there be new base dollars to allocate to fund 114 in FY27 or FY28?
No, there are no new base dollars expected. However, if a School/College/Division (SCD) did not award all of its fund 114 allocation as base salary increases during the original exercise then they would have funds available in FY27 to award other base salary increases.
Will pay plan be allocated on fund 114?
Yes, FY27 fund 114 allocations include additional funds for pay plan, and UW System indicated that campus will receive additional allocations for future pay plan on fund 114. (Source: OHR FAQ 2/23/26)
Will campus funding for faculty promotions include fund 114 salary amounts?
Yes, the amount of campus funding provided for faculty promotions will include fund 114 salary amounts as well as 101, 104, 131 and 150 due to the new budget approach; however, campus will provide the full allocation on fund 131. Note that campus funding is 50% of the promotion related to eligible fund sources.
Does the fund 114 allocation have to be fully spent by the end of each fiscal year or can divisions carry over unspent balances?
Each SCD must fully expend its 114 allocation each year. Unspent funds cannot be carried over from one year to the next. (Source: OHR FAQ 2/23/26)
What happens when a faculty member who received a fund 114 base salary increase leaves the UW?
If a faculty member leaves, the SCD can re-allocate the 114 funds to another eligible faculty as either base or as a one-time payment (OTP). SCD’s should use the TEMPLATE_Faculty-High Demand Fields Data Capture 2026-27_UWMSN from OHR. Complete the Data FY27 tab for the faculty member receiving the reallocated funds or OTP and complete the Turnover tab to record the information about the faculty that is leaving. See the instructions tab for more information on completing this template. Submit the completed form to compensation@ohr.wisc.edu.
What are the options for using 114 funds when faculty are on sabbatical?
SCD’s can continue to charge the nominal dollar amount of the faculty’s 114 salary to fund 114 while the faculty member is on sabbatical, and reduce the salary charged to other funding sources. (Source: OHR FAQ 2/27/26)
For example, a faculty member has a 1.0 FTE and a $100,000 full-time annual salary of which $10,000 is charged to fund 114. They go on a 65% paid sabbatical and are not paid for the remaining 35%. The SCD can adjust the costing allocation to continue charging $10,000 of the paid salary on fund 114 and the remaining $55,000 on other funding sources for a total of $65,000.
OR
The SCD can use available 114 funds to provide one-time bonuses to the faculty member that is on sabbatical or to other eligible faculty.
For example, a faculty member has a 1.0 FTE and a $100,000 full-time annual salary of which $10,000 is charged to fund 114. They go on a 65% paid sabbatical and are not paid for the remaining 35%. If the SCD makes no changes to the payroll costing allocation, $6,500 will be charged on fund 114 with the remainder covered by grants or other funding sources. The SCD can give an OTP to the same faculty member or other eligible faculty to use the remaining $3,500 on fund 114.
For the same faculty member: SCD would need to submit a ticket to GetHelpUWto request a Pay Input for the $3,500. That is a manual calculation that the SCD would need to calculate, and as a Pay Input, it will get charged to the base funding (including 114).
For a different faculty member: SCD’s should complete the TEMPLATE_Faculty-High Demand Fields Data Capture 2026-27_UWMSN and send it to compensation@ohr.wisc.edu. Complete the Data FY27 tab for the faculty member receiving the reallocated funds/OTP, as well as to indicate the faculty member on sabbatical whose unused Act 15 funds will be reallocated. Having both sides of the equation will allow you to better track/reconcile the requested total spend.
If a faculty member who was included in the fund 114 exercise has been successful with receiving grant funding for their salary and they don’t have enough available salary to charge to fund 114, can the SCD use available 114 funds as existing salary support (not a one-time bonus) for another faculty member in the SCD for the period of time that the original faculty has a high level of grants?
Act 15 salary adjustments are intended to be supplemental to current salary and funding. Supplanting is not allowed. It is unlikely the remaining 114 funding could be used to offset existing funding for another faculty member. However, given the potential differences in funding amount, length of grant, etc., a flexible approach seems most appropriate so UW Shared Services (UWSS) will assess each Act 15 situation on a case-by-case basis as they arise so they can consider the unique details of each situation.
To request a UWSS review, the SCD should email the Compensation Center of Excellence (CCoE) team at compensation@ohr.wisc.edu. At a minimum, they would need the TEMPLATE_Faculty-High Demand Fields Data Capture 2026-27_UWMSN from OHR, what is being requested, and the justification for the request. The CCoE team will work with UWSS to see if it can be approved.
What type of reporting is UWSS doing?
UWSS has developed audit reports that are run monthly to help ensure faculty receiving 114 funds continue to align with administrative guidelines and legislative intent. These reviews focus on items such as:
- Whether the population receiving 114 funding matches those who were reviewed and approved for CIP eligibility requirements.
- Whether an individual’s 114 allocation exceeds the 20% maximum.
- Whether an individual’s 114 funding allocation percentage has changed from what was originally expected.
UWSS is partnering with UWS to research and address any questions that arise from these reviews. Because there is a possibility these funds could be subject to an audit, they are monitoring these areas closely to support compliance.
What type of reporting is expected of a SCD?
There are currently no reporting requirements expected of a SCD; however, it would be the responsibility of a SCD to determine if previously allocated funds are unused (e.g., due to a 114-fund recipient terminating/retiring or going on sabbatical). SCD’s may want to establish reports to track these situations/opportunities for reallocation.
Finance teams may want to use All Funds Financial Budget to Actuals (UW) or Financials by Organization (UW) to monitor Fund 114 expenditures compared to budget.