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Budget cut scenarios run as high as 4 percent

At the request of UNC President Molly Corbett Broad, Carolina administrators have drafted scenarios outlining the potential impact of state budget cuts of up to 4 percent for next year.

Broad's office asked UNC system schools to come up with scenarios for 1 percent, 2 percent, 3 percent and 4 percent permanent cuts after N.C. Gov. Mike Easley directed the system to identify reductions that could be made without damaging classroom instruction. Easley is looking for ways to close a 2002-03 state budget shortfall now expected to top $1 billion.

Carolina deans and vice chancellors submitted scenarios for their units to Robert Shelton, Carolina's executive vice chancellor and provost. Shelton said classroom instruction would be hurt "almost immediately and certainly in a significant way" at the 2 percent level.

"The swiftness of this impact is due to two factors," he said. "First, these cuts come on top of many years of budget reductions. We have already pared our state funds in support of non-personnel expenditures to the bone -- thus, any cuts will start to impact instruction very rapidly.

"Second, we do not anticipate receiving significant enrollment increase funds in the coming year, so there will be no `softening' of the reductions as we saw last year."

In fact, Shelton said, much of the revenue that would be generated by Carolina students paying for a system-wide tuition increase proposed for next year by the UNC Board of Governors would go to fund enrollment growth at other system schools. Under the proposal, Carolina students would pay an additional $9 million in tuition, but $5.8 million of that would go elsewhere. That plan still requires final approval by the legislature, which convenes for its biannual short session next month.

Potential cuts identified by administrators here include measures such as reducing staff training, facilities repairs and scheduled equipment replacements. All of the scenarios also call for at least some layoffs, ranging from roughly 19 staff and seven faculty at 1 percent to 93 staff and 70 faculty at 4 percent. A number of vacant positions also would be eliminated. Because of these moves, Shelton said, it's doubtful that any level of cuts would leave the classroom unscathed.

"We must keep in mind that `instruction' means more than faculty and TAs in front of students," he said. "The support staff plays a critical role in our delivery of instruction.

We get rapidly to personnel costs since we are already so lean in state funding."

Shelton said state budget cuts in previous years have left Carolina few options but layoffs.

"There are no excesses to trim," he said.

Shelton said any decisions about layoffs would be made "after extensive deliberations and with the utmost care."

"We do intend to protect people to the extent possible," he said. "It is also my operating principle to place the decisions as close to the individual units as possible, to ensure maximum awareness of the impact of such budget cuts."

Shelton said it is too early to say which -- if any -- of the scenarios will become reality.

"State officials do not know the status of their revenue -- we have not even passed the April 15 date for tax collections," he said. "I think it is unwise to assume any quantitative conclusions at this point. We will continue to prepare and continue to work with the Office of the President and state leaders to demonstrate our needs."

Shelton also noted that the budget Easley will submit to the state General Assembly is just a starting point, although a very important starting point as it will set the framework for the legislature.

Regardless of what happens, Shelton said, "we are greatly heartened" by Easley's stance in support of education.

"We think higher education is one essential factor in the economic health of the state, and at Carolina we have numerous examples of how each dollar spent by the state at Carolina returns multiple dollars to the state's economy," he said. "In short, we are the state's best investment in both the immediate timeframe and for the future.

"I think the governor and many legislative leaders recognize this fact."

University Gazette