Spending freeze on all state funds retroactive to April 9

New statewide mandatory spending restrictions have been put in place to balance the state budget this fiscal year, which ends June 30.

No state funds can be spent to hire new employees, provide salary increases, purchase goods and services, or travel.

Gov. Beverly Perdue directed the Office of State Budget and Management to issue the restrictions.

“Allotments will only be approved for mandatory obligations, including payroll, utilities, financial aid, required state aid and debt service,” State Budget Director Charles Perusse said in his April 9 memo to department heads statewide.

The spending freeze on all state funds, including state receipts, was announced last week by Executive Vice Chancellor and Provost Bernadette Gray-Little and Vice Chancellor for Finance and Administration Richard Mann in a memo to Carolina’s vice chancellors and deans. The freeze is effective retroactive to April 9.

There are some narrow hiring exceptions, however.

Still permitted under the normal approval processes are the hiring of faculty positions directly related to classroom instruction, the hiring of positions paid entirely from non-state resources and the hiring of public safety officers or health-care positions providing direct care to patients.

Other vacant EPA and SPA positions funded all or in part by state funds have been frozen, and new positions funded fully or partially with state funds may not be created.

Perusse’s memo and emergency budget guidelines for the University community outlining these restrictions and others related to purchase and travel have been posted on the Carolina Budget Information Web site, universityrelations.unc.edu/budget. Look under “Recent Budget Communications.”