The problem is it is an indication of a possible problem. While Mullen got a nice, fat raise, word going around is that the assistants got short-changed on their raises. If so, this is a big problem, since good assistants are just as important as the head coach. (See Florida in the past couple of years)
If true, I blame Mullen. He should have asked for more money for his coaches, and of there wasn't any extra to be had, he should have taken a smaller raise to free up some cash for his guys.
The real issue, though, is probably just that Miss St can't compete financially with UT-Austin. Not really that big an issue because no one can. Be patient. If Mullen is the guy you want running your program for years to come, he'll find a good group of assistants and get them paid.