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Additional 4 percent cut expected


Although the word is not yet official, Carolina expects to take an additional 4 percent cut this year in state funds.

A one-time cut, it would come on top of a

3 percent cut in permanent state funds already sustained by the campus, bringing this year's total reduction to some $26 million.

Executive Vice Chancellor and Provost Robert Shelton said that as of Oct. 20, no official confirmation of the 4 percent cut had come from the UNC system's Office of the President, but "all oral communications" from that office and the state budget office indicated that Carolina would take the cut.

Shelton said he has told deans and vice chancellors to plan for the additional reduction. Following discussions with them, he said, he decided to apply the cut across-the-board.

"The flexibility to handle the cut therefore rests with the deans and vice chancellors," Shelton said. "They will work with their unit heads on actual implementation in order to put these difficult decisions as close to the unit as possible."

Shelton said that principles guiding how the cuts will be made will be the same as those for the 3 percent cut in permanent funding. The guidelines were worked out through discussions with the Executive Committee of the Faculty Council and the University Priorities and Budget Committee. They include:

* Protecting academic programs as much as possible;

* Favoring people over construction;

* Considering the cumulative impact of cuts in recent years; and

* Considering the unit's dependence on state funds.

But Shelton said the total cut of 7 percent would have a significant impact on academic programs, and the campus is already reducing the number of sections available in certain courses for the spring semester. And the hiring of some faculty will be delayed to achieve the needed one-time savings.

Support staff will be hit hard, too, Shelton said, especially in light of cuts sustained in previous years.

"These two cuts [of 3 percent and 4 percent] will push them to the limit," he said.

While too early to give precise numbers, Shelton said the campus can expect to absorb layoffs in personnel as well as see vacant positions eliminated.

Shelton said he has not set a deadline to receive administrators' plans for implementing the 4 percent cut because he has yet to receive written confirmation that it will be imposed. If past practice is any indication, the campus will have until the end of this fiscal year to send the funds back to the state, he said.

Shelton praised how the campus has gone about handling the cuts.

"Throughout this difficult budget process I have received unfailing cooperation and constructive advice from all colleagues," he said. "This includes administrative leaders, faculty, students and staff. This collegial attitude is an essential ingredient as we continue to build Carolina."

On the positive side of the budget, Shelton noted that money continues to flow from last year's bond referendum for capital improvements.

"This gives us the opportunity to add critical new space and to renovate existing facilities," he said. "Both are extraordinarily important."

Another positive is that the campus received $11 million in new, permanent dollars from the state to fully fund enrollment growth.


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