Escalation Rates for Use in Sponsored Project Proposal Budgets
Guideline Date: December 2022
Revision: 0
Last Review: December 2022
Principal investigators may plan for rising costs by building reasonable annual increases into proposal budgets. Not all sponsors permit cost escalations, but where they are permitted, Sponsored Projects recommends the following rates by budget category.
| Effective dates | Budget category | Increase not to exceed |
|---|---|---|
| FY 25 | Faculty | 11% (Escalation to be included until proposed FY25 COLA is approved and applied to salary.) |
| FY 25 | Classified | 11% (Escalation to be included until proposed FY25 COLA is approved and applied to salary.) |
| FY 25 | Others | 3% |
| FY 26+ | Faculty/Classified | 3% |
| FY 26+ | Others | 3% |
| Effective dates | Budget Category | Increase not to exceed |
|---|---|---|
| FY25+ | Stipend (does not apply to fringe rates) | 3% |
| FY25 | Tuition | 10% |
| FY26+ | 5% |
| Budget category | Increase not to exceed |
|---|---|
| Other direct costs | 3% |
Considerations Governing Budget Escalations
- The sponsor’s requirements and limitations may impact budget escalations.
- Proposed budget escalations cannot justify cost increases that do not occur as projected, i.e., costs must actually escalate within the percentage and projected budget period in order to allow the budget increase.
Check with your College Grant Coordinator or Pre-Award Research Administrator for guidance on the allowability and use of escalations.