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Budget cut claims 14 employees

Fourteen Carolina staff employees had been notified as of Nov. 19 that they will be laid off as part of the University's efforts to absorb a 3 percent cut in state funds this year.

The layoffs came in plans developed by vice chancellors and deans as they determined how their areas would meet the 3 percent cut, a permanent reduction in Carolina's budget amounting to more than $10 million.

Executive Vice Chancellor and Provost Robert Shelton said plans for dealing with the cut also include measures such as eliminating vacant positions and trimming support budgets. He also said he was convinced that administrators have "made every effort to minimize permanent layoffs."

Shelton said he was disappointed that any employees had lost their jobs.

"Carolina values its staff who not only work hard to provide a great education and educational environment, but also contribute to the sense of family that makes Carolina special," he said. "With a 3 percent permanent cut to an institution and budget that is driven by personnel costs, some layoffs were inevitable."

All of the 14 employees identified for layoff fall within the State Personnel Act (SPA) category, of which there are more than 6,000 on campus. About 17 percent of Carolina's state budget appropriation goes to SPA personnel costs.

Shelton said he couldn't say for sure whether there will be more layoffs, but numbers now being crunched should give each unit a clearer picture of its budget by the end of November.

"Of course, if the state's fiscal picture does not brighten, we could receive additional reductions," he said.

Employees who have been told they will be laid off will receive counseling from the University's Office of Human Resources as to what their re-employment rights are and what job possibilities there may be for them, whether at Carolina, with the state or elsewhere. They're also told about their benefits, which include continued health care coverage for a year.

Laid-off employees do not receive any higher priority than state employees when it comes to being offered other state jobs, including those with the University, said Laurie Charest, associate vice chancellor for Human Resources.

That used to be the case, but the state changed the law after state workers argued that such treatment gave laid-off employees an advantage over them when they tried to transfer to an open position that would represent a promotion, Charest said.

While no policy requires that laid-off employees be given first dibs at campus openings, managers here are encouraged to consider them as they fill vacancies, Charest said.

In addition to the 3 percent cut in permanent funds, Carolina will have to send back to Raleigh 2.7 percent of this year's state budget under an agreement reached recently between UNC President Molly Corbett Broad and Gov. Mike Easley. Originally, projections for this additional one-time cut stood at 4 percent.

The campus has more options to cover this because the money only has to be found for one year, Shelton said. He said that for the most part units are delaying filling open positions -- faculty and staff -- and using the savings to address the 2.7 percent reduction.

Still, he said, "In combination, these are serious budget reductions."

"They will result in higher student-to-faculty ratios and larger class sizes," he said. "Support services will suffer. I believe we will still move forward, but we are feeling the impact."

While the state's budget woes have hurt Carolina this year, Shelton said it's important to keep Raleigh's longtime record in mind.

"Particularly as a newcomer, I would reference the traditional generosity of the state of North Carolina toward the University," he said. "The residents of the state hold higher education in general and Carolina in particular in high regard and recognize the critical role we play in the economic health of the state."

Shelton first publicly raised the subject of layoffs at a Nov. 7 Employee Forum, at which point 11 employees had been notified that they would lose their jobs.

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