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It doesn't look nearly as bad as it did, but any celebration would be
premature.
Just a few weeks ago, the University faced the prospect of a $25.4 million cut
in state funding for 2001-02, which would have been part of a 7 percent cut
across the UNC system amounting to $125 million. That total was what the
co-chairs of a North Carolina legislative budget committee had asked the system
to identify in potential cuts to help close the state's budget shortfall,
projected to be in the hundreds of millions of dollars.
Now, the state Senate's budget proposal actually has Carolina coming away with
a net budget increase of more than $6 million. The Senate's spending plan is
being hashed out in the state House, and both bodies must approve any final
budget before it becomes official.
The picture may have brightened for Carolina, but it could turn dark again
depending on what happens in the House and subsequent negotiations with the
Senate, said Nancy Suttenfield, the University's vice chancellor for finance
and administration.
"After the threat of a 7 percent reduction, we're very pleased with the Senate
proposal," she said. "However, until the legislative action is complete, we
can't be certain of our budget."
While the Senate's budget would cut the University's recurring funding levels
by $6.87 million -- a reduction of less than 2 percent -- Carolina's share of
expansion dollars for the UNC system would add more than $13 million to the
campus's bottom line next year. That total would include $11 million for
enrollment growth in regular classes and $1.9 million for enrollment growth in
distance education.
Carolina also would get shares of an $8.93 million increase for need-based
financial aid and $1 million for research in genomics and bioinformatics. And
Carolina's Institute of Government stands to get $250,000 for technology
support.
Another positive in the Senate budget is that it includes $46 million in
repairs-and-renovations funds for UNC system schools. Based on past practice,
that would mean about $10 million for Carolina. Suttenfield called this good
news, particularly given that N.C. Gov. Mike Easley's budget proposal included
no money for UNC system repairs and renovations.
"It would be very disheartening to have no funds for cyclical repairs and
routine renovations to address the ongoing needs of the campus," she said.
Overall, the UNC system's 2001-02 budget would be cut by the net amount of $3.9
million under the Senate's proposal. That's a far cry from the $125 million
figure that had been discussed. The Senate lightened the load by shifting
cost-saving measures elsewhere, closing tax loopholes and proposing new or
increased taxes on items such as satellite television.
The Senate also would raise 2001-02 tuition rates by 5 percent across the UNC
system to avoid deeper budget cuts to the system. That increase would be on top
of a UNC Board of Governors request for a 4 percent hike, and the two increases
would combine to generate $24.7 million for the system.
But while the Senate's call for expansion dollars would result in a net gain
for the University, its cuts to the UNC system's recurring funding would be
felt here. Academic Affairs would lose $5 million; Health Affairs $1.68
million. And the Area Health Education Centers program, based at Carolina's
medical school, would lose $178,492.
Almost half of those losses would be realized through position cuts. Both SPA
and EPA non-faculty positions would be trimmed by 2 percent, a move projected
to save $3.18 million.
Suttenfield said it's not known how many positions the 2 percent reduction
would translate into at Carolina, because the campus most likely would decide
which positions to eliminate, and the total number would depend on the funding
amount attached.
Suttenfield said a 2 percent reduction in positions would be far less severe
than the scenario faced by the University when it was looking at a 7percent
cut. At that time, campus administrators feared more than 170 faculty and staff
positions might have to be eliminated.
"A reduction of more than $25 million would have left us no options except to
slash positions," she said.
Another cost-saving provision in the Senate budget calls for UNC system tenured
faculty to teach at least 15 credit-hours per semester. That would save $3
million. But Suttenfield said the proposal fails to account for the work
Carolina professors do outside of the classroom, such as performing research
and guiding graduate students. It's one measure the University hopes to see
dropped from the final budget.
"The proposed mandate would seriously compromise our competitive position with
other major universities where it is well understood that such endeavors are
essential ingredients to learning and the creation of knowledge," she said.
Suttenfield said that campus administrators appreciated the way faculty and
staff supported their efforts to stave off the original prospect of a 7 percent
cut, but she warned that the support may be needed again.
"Please stand ready to take up the cause if higher education is once again the
target of disproportionate cuts," she said.
No one can say for sure when a final budget will be approved by the
legislature, but observers said it likely will take several weeks.
Your pocketbook
The N.C. Senate's 2001-02 budget proposal includes a $625 pay raise for state
employees.
The $625 would go to each SPA employee, and funding from the state would be
enough to give an average raise of $625 to each EPA employee. The raise would
be a permanent addition to base salaries.
The Senate decided on the $625 figure because it represents a 2 percent raise
for the average salary for state employees in North Carolina.
Budget on agenda for June 14 community meeting
An Employee Forum Community Meeting will be held June 14 at 100 Hamilton Hall
from 9 to 10:30 a.m.
Chancellor James Moeser will make remarks and will introduce Executive Vice
Chancellor and Provost Robert Shelton, who will also speak. Then the floor will
be opened up to questions on any topic.
The theme of the meeting will be "Legislative Updates: What's Next," and Joe
Ferrell, secretary of the faculty, will provide an overview of how the state
legislative/budget process works.
Attendance at Employee Forum meetings is considered work-time and supervisors
and department chairs are encouraged to permit employees to attend when it
occurs during an employee's regular schedule, provided that essential services
are covered.
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