It seems like the cost of fringes has significantly increased under SI, how come?
From July 2001 – June 2004 the research fringe rates that were negotiated with the federal government were too low. These rates were negotiated just prior to the nation-wide health cost explosion. As a result, the research fringe pools have had to be subsidized approximately $2.2M per year (this represents ~ 10% of the research rate or 3.4 points 36% – 32.6%). While MSU couldn’t change the predetermined fringe rates for the length of the agreement (7/1/01 – 6/30/04), CGA recommended that all budgets that extend beyond, budget in the range of 36-38%. That is why the transition from the current rate of 32.6% to the composite rate under SI ~ 36.1% seems like a big step.
