Cuts: High-growth UNC funds

A fund for fast-growing colleges could be cut.

Since the late 1990s, the University of North Carolina system has built up a reserve fund for state universities that were growing at a rapid rate.

That included the five historically black colleges, Elizabeth City State University, N.C. A&T, N.C. Central, Fayetteville State and Winston-Salem State. Two others, UNC-Pembroke and Western Carolina, were also helped. 

"All had the capacity to grow at a rate greater then they would naturally," said UNC spokesman Rob Nelson. "The money was appropriated to accommodate the administrative costs of that — to help with infrastructure, administration and financial aid."

In all, Nelson said the fund had provided $30 million for the seven schools.

Gov. Beverly Perdue proposed cutting the annual $1.3 million appropriation in order to help balance next year's budget. 

Cuts: Bowles' discretionary money

Erskine BowlesA cash pool for Erskine Bowles could be trimmed.

The University of North Carolina system president has long had a "Strategic Initiative Reserve" that allows him to run new programs mid-year at state colleges and in the central administration.

In past years, the fund has been used to start new research centers, administer a billion-dollar construction program and improve internal auditing and accounting systems, said UNC spokesman Rob Nelson.

Bowles has sole discretion over the spending.

"He reports it to the Board of Governors, but it's his allocation, not theirs," Nelson said.

The fund typically receives $3.3 million. Gov. Beverly Perdue proposed reducing it by $1 million in next year's budget.

UNC system warns of classroom cuts

State universities could see 1,600 jobs vanish, hundreds of classes cancelled and library hours cut back.

University of North Carolina system leaders said that a 7 percent cut in their budget, which seems likely under the state's current financial situation, would have painful consequences.

They warned that they would lose 660 faculty positions, have bigger classes, fewer available courses and less counseling and advising. More classes would be taught by part-time professors. Building repairs would be delayed.

Such dire predictions are often used to to protect state colleges from budget cuts. But UNC leaders say that it will be impossible to avoid cuts that hurt the classroom.

"President Bowles wants to make it as clear as possible to you, the Governor, and the legislature that imposing permanent cuts would be equivalent to sacrificing the future of North Carolina," said UNC vice president Rob Nelson in a memo. (N&O)

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