URBANA, Ill. (CBS) — Despite growing financial problems, the University of Illinois is giving raises to faculty members.

As WBBM Newsradio’s David Roe reports, U of I managers say despite the fact the school is operating in a tough financial environment, they plan to give faculty members merit-based raises this summer averaging 2.5 percent.

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U o I vice president for academic affairs Christophe Pierre says any raises will be questioned, with the school’s state funding dropping by $44 million this fiscal year.

But Pierre and others gathered at a meeting Tuesday on the Urbana-Champaign campus said the university has to keep salaries competitive to draw and retain top talent.

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Associate Vice President for Planning and Budgeting Randy Kangas says other Big Ten schools are planning raises of 1 to 3 percent.

Officials say the raises aren’t automatic and some employees may not get them.

LISTEN: WBBM Newsradio’s David Roe reports

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