There is a proposal for a new negotiated pay system for faculty. Yours truly suggests you pay close attention since it is your pay that is involved. The cover letter indicates that employees (presumably faculty) should be consulted. The proposal is at: http://www.universityofcalifornia.edu/senate/underreview/APM-668SystemwideReviewRequestandmaterials.pdf
The report gives 4 examples of how the negotiated salary would work. Example C uses grant funds to increase the salary. But this appears to directly contradict federal guidelines quoted in the report that explicitly state that grant funds cannot be used to augment the base salary. Or am I misreading the example?