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University Gazette

The University of North Carolina at Chapel Hill

State budget approved, details about effect of cuts across UNC system to come

The $20.6 billion North Carolina budget for fiscal year 2013–14, which state legislators passed and Gov. Pat McCrory signed late last month, will cut state funding to the 17-member UNC system by $66 million in the coming year.

Exactly how the various cuts will affect each member institution will not be known until the UNC Board of Governors meets on Aug. 9, but it is already known that Carolina’s School of Medicine and the University Cancer Research Fund will see significant reductions in state support.

The budget eliminates all direct funding to the UNC School of Medicine to support graduate medical education and help pay for uncompensated care. Formerly the UNC Hospitals appropriation, this support has been as high as $43 million. Last year’s appropriation was reduced to $15 million, which at the time was designated as a recurring amount.

The University Cancer Research Fund, which has received $50 million annually since 2009, will receive $42 million in 2013–14.

The budget raises tuition on out-of-state undergraduates for the 2014–15 academic year by either 6 percent or 12.3 percent, depending on the institution. Carolina students will pay the higher increase.

In February, the BOG approved a 6.1 percent increase for out-of-state undergraduates for the 2013-14 academic year that begins later this month. Unlike the BOG increase, revenues from the legislative increase will not stay on campus, but go toward supporting the state’s general fund.

Non-resident scholarship students will be able to pay resident tuition rates. At Carolina, this largely affects out-of-state students in the Morehead-Cain and Robertson scholars programs.

Jennifer Willis, Carolina’s director of state relations, said the budget includes full enrollment growth and funding for building reserves at universities.

The budget appropriates $150 million for repairs and renovations; of this, the UNC system will receive $60 million, or 40 percent. Carolina’s share of this money has yet to be determined, but its estimated backlog in deferred maintenance now stands at $717 million.

In addition, the budget supports capital projects across the UNC system totaling $458.6 million. All the projects are self-liquidating, which means capital debt will be repaid by revenues the new buildings later generate. Carolina received approval for the Rizzo Center Phase III ($36 million); the Odum Village replacement ($25 million); and the Craig Parking Deck supplement ($4 million).

Once again, state employees will not see any pay raises. Like last year, all employees will receive an additional five days of vacation, which must be used by June 30, 2014.