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Although many state agencies are already abolishing jobs, Carolina officials
continue to advocate the need for flexibility to manage eventual budget cuts in
a way that will not interfere with the campus's ability to carry out its
mission.
Thom Wright, director of the Office of State Personnel (OSP), has asked state
agencies to notify their employees who will be laid off as part of the effort
to close a state budget shortfall running in the hundreds of millions of
dollars.
But the UNC system's Office of the President has told Carolina that OSP has
acknowledged what system officials call the "differing circumstances" of system
schools. Therefore Carolina has not identified any positions for elimination,
said Nancy Suttenfield, the University's vice chancellor for finance and
administration.
"Carolina and its sister institutions are facing significant increases in
enrollment and all manner of related service demands," Suttenfield said. "State
policy-makers have thus far been supportive of President Broad's plea to allow
each institution to plan for budget cuts according to its own circumstances."
But the Office of the President does expect the UNC system to take some
position cuts, and -- based on budget proposals that have emerged from the
state legislature so far -- Carolina can expect a minimum cut of 2 percent in
SPA and EPA non-faculty personnel, Suttenfield said.
"Ever since last winter, when it became apparent that Carolina would need to
absorb its fair share of the budget pain, we have advised the campus community
to be careful about making new personnel commitments," Suttenfield said. "To
minimize the possibility that employees would have to be let go, many
departments have held positions open until the budget situation becomes more
clear."
In general, Suttenfield said, managers should plan for any cuts -- personnel or
otherwise -- in a way that would least affect the mission of their
department.
"Not only is it important that we do our utmost to assure that Carolina
maintains its tradition of excellent teaching and learning experiences, we
consider our faculty and staff to be our most valued assets," she said. "While
routine attrition creates workload challenges, it is much less disruptive to
the campus community than the pain of losing valued employees who have families
that depend upon them."
Suttenfield said that her office will inform the campus of details about any
position cuts or employee layoffs as soon as those details become available.
Meantime, she said, Carolina officials will be working hard in Raleigh to make
the case that the campus should be given the authority to decide how cuts are
made here rather than having to follow directives from the legislature.
"Our campus recognizes that State policy makers are facing difficult choices
about cutting the budget and increasing taxes," Suttenfield said. "We continue
to work closely with them to offer constructive suggestions that recognize our
responsibility to share in an eventual solution and yet protect our programs
and our people."
One thing that is certain -- at least in the short term -- is that the
University can't raise the salaries of current employees through in-range
increases. A "continuing resolution" passed by the legislature to keep the
state operating while the budget is hashed out includes a freeze on all salary
actions for all employees, regardless of the salary's funding source.
Suttenfield said her office will provide further details on the freeze to
employees as they become available.
"All of us appreciate that the threat of budget reductions and layoffs is
stressful to our faculty and staff, particularly when we are already into the
second month of the fiscal year. Although it is impossible to tell when we will
have definite news about our budget, we will do our best to keep the campus
informed about developments as they occur."
Board passes resolution on budget
The University Board of Trustees adopted a resolution at its July 26
meeting "encouraging legislators to preserve and protect North Carolina's
educational system."
The full resolution:
WHEREAS the Board of Trustees of the University of North Carolina at Chapel
Hill appreciates and understands the dilemma North Carolina's lawmakers face in
addressing the state's budget crisis;
WHEREAS the University of North Carolina at Chapel Hill fully expects to do its
part in helping the state resolve its budget crisis;
WHEREAS the voters of North Carolina overwhelmingly endorsed in the fall of
2000 their support for and recognition that education is the economic engine of
North Carolina and that the future of the state is dependent on the quality of
its education system;
WHEREAS North Carolina's lawmakers have limited options to make further budget
cuts without irreparably damaging the educational experience and opportunity
current and future North Carolina students receive;
WHEREAS our public schools, community colleges and universities are our state's
best investment to ensure a speedy economic recovery;
NOW THEREFORE, BE IT RESOLVED that the Board of Trustees of the University of
North Carolina at Chapel Hill urges the legislature to consider both
cost-cutting and revenue enhancements together as a way most likely to preserve
and protect North Carolina's educational system in service to the future of the
state and its citizens.
Annual enrollment for health insurance delayed
The annual enrollment period for employee health insurance has been
delayed pending completion of the state budget process. Enrollment generally
takes place in August for the coverage year beginning Oct. 1 and ending Sept.
30, 2002.
This year, University employees have only one option, the State Health Plan.
WellPath Select and Prudential, the two HMOs that were available to employees
for the past year, have withdrawn their services. Under the State Health Plan,
employees have three coverage options: employee only, employee and child, or
employee and family.
The enrollment process has been delayed because the premiums for the health
coverage are set by the legislature and are a part of the state budget bill,
which is incomplete. However, premiums are expected to increase
substantially.
Employees who are currently covered by WellPath -- and who completed an
enrollment form this summer when WellPath announced it was dropping state
coverage immediately (this was later changed by court order) -- do not need to
complete another form. Employees enrolled in Prudential are encouraged to
complete a State Health Plan enrollment form to change coverage to the State
Health Plan. A deadline for this has not been determined, but employees may
complete the form now if they wish. The form is available on the Human
Resources web site or by calling the Benefits Department at 2-3071.
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