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Campus seeks flexibility on cuts


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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