Ball State University has no plan on how it would handle a minimum wage increase if the federal bill proposing the increase passes, university officials said.
Randy Sollars, director of university budgets, said forming a plan was difficult without knowing the specifics that would change.
"We don't even know what the wages are going to be yet or when they are going to be in effect," he said.
The federal bill would gradually raise minimum wage to $7.25 an hour over a two-year time period. Current federal and state minimum wage is $5.15 an hour.
University officials have just begun to look into the effects a wage increase would have at Ball State, Sollars said.
"We don't have a deadline on when we'll have a firm plan," he said.
University officials said they were unsure whether student tuition or students jobs would be affected by a minimum wage increase.
Sollars said he was fairly confident that Ball State wouldn't cut jobs, but he was unsure whether the university would have to cut the hours employees work.
Larry Beck, associate director of the Career Center, said students shouldn't be worried, though.
"In the past, when minimum wage has been raised, the university has always risen to the
occasion," Beck said.
When Ball State increased campus minimum wage to $5.50 an hour about five years ago, the departments were forced to absorb the cost because the university provided no extra money, he said.
If this bill passes, however, the departments will not be able to cover the large costs, so the university will have to help, Beck said.
Sollars said Ball State has two sources of funding: student fees and state appropriations.
"If we have to fund a large amount then it will have to come from one of those sources," he said.
Beck said he didn't know where the money to cover a wage increase would come from.
Most student jobs on campus pay $5.50 an hour, and the student employees make up the greatest portion of Ball State's workforce, Beck said. The university usually employs more than 4,000 students during the course of a year, he said.
The university views student employment as a form of assistance to help students earn money to help pay for college expenses, Beck said.
"The Career Center wants to be sure we don't lose student employment positions or see a cut back in the number of hours students work," he said.
Minimum wageUniversity officials are unsure whether student tuition or students jobs would be affected by a minimum wage increase.
Minimum wage would increase to $7.25 an hour over a two-year period. If the federal bill passes.
The current minimum wage is $5.15.
Ball State increased campus minimum wage to $5.50 an hour in 2002.
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