Dear Colleague,

We are grateful that the Board of Trustees, upon the recommendation of
President Eli Fly, authorized the completion of the university's
compensation plan for 2001 - 2002.  I regret that we have taken so long to
get to the "other half" of your compensation adjustment, but I am delighted
that the Board has now authorized an addition for faculty and staff.

Each of you will receive a specific letter in January detailing the changes
in your monthly payroll.

The changes in the aggregate and the average represent progress in the UTC
three-year compensation plan of trying to bring our faculty and exempt
salaries to peer averages and our non-exempt salaries to 90% of the
compensation levels of similar job classifications in Chattanooga's
metropolitan area.  Funding from student fees and university reallocations
will provide the funds for these long overdue adjustments in salaries.

While we will conclude that we have not yet totally achieved our goals, we
note thankfully that significant progress has been achieved.  We will
report to you those aggregate totals and averages in University Budget
Committee deliberations this Spring.

Should you have a question about your specific letter in January, please
feel invited to check with your Dean, Director, Dan Webb or Richard Brown.

I think you will be pleased with the efforts to convey to you that the
university values the people who make up the university.  We have been able
to correct inequities in some salary levels that were glaringly afar from
colleagues with similar duties and evaluations of merit.

As we wrap up another semester and another calendar year, may I say again
"thank you" to each of you for making UTC such a great place to work.  Like
some of you,  I have recently counted my blessings on being a part of you.

As you make plans to depart the campus this week, I wish you a great break
from the campus routine.  Be safe, and enjoy the peace of this holiday season.

Bill