University budget cuts will vary significantly across the UNC system, ranging from 8 percent at the School of Science and Mathematics in Durham to nearly 18 percent, or more than $100 million, at the state's historic flagship, UNC-Chapel Hill.
N.C. State University will take a 15 percent reduction, while N.C. Central University will see a 14 percent cut.
The UNC Board of Governors' budget and finance committee acted this morning to allocate $414 million in cuts for the current fiscal year enacted by the legislature. The budget law ordered that the reductions not be made across the board, a method that could have resulted in a 15.6 percent reduction for each campus.
The system instead used six criteria to determine how to dole out the cuts, taking into account differences among the campuses.
Those criteria included performance factors, such as student retention and graduates produced, plus financial factors such as tuition, percentage of low-income students and the availability of other sources of revenue on a given campus. Also, campuses with fewer than 6,000 students received special consideration because they aren't large enough to operate with economies of scale.
Those were factors the UNC leaders thought were important in tough economic times, said UNC President Tom Ross.
Ross said he was proud of the unity among chancellors who lead the individual campuses. He said budget turmoil across U.S. public higher education had led to infighting and fragmentation in other state systems.
"I'll tell you they're not all happy about this but they all understand it and they're all supportive of it because they support the system," Ross said. "I think it's going to be hard to cut the amount of money that they're being asked to cut on every campus but they're going to do it wisely and well, I'm sure, and they understand the reason for the allocations."
He said campus layoffs were under way now and many had occurred earlier in the year to prepare for the certainty of cuts.
Everything will be on the table as chancellors deal with the reductions, except an additional tuition increase. Some chancellors had said another hike was necessary.
Tuition has increased an average of 39 percent in the last three years across the system. Increases had already been enacted in February for the coming academic year and financial aid packages had been set accordingly. So another increase would have been disruptive and unfair to parents and students, Ross said. There is also less financial aid available for a larger pool of students.
"We just felt it was more important to figure out how to get through this without another tuition increase right now," he said.
Despite the display of unity, the large percentage cut in state funding will be a blow to the Chapel Hill campus. However, UNC-CH has more private fundraising capacity than other campuses and pulls in a large amount of federal research money each year.
Charles Mercer, chairman of the budget and finance committee and a UNC alumnus, said the campus would do its best with the cards it is dealt.
"It is unfortunate that Chapel Hill will have to work within these parameters, which includes these significant budget cuts," he said. "But Chapel Hill has exceptional leadership and they will be able to respond to this challenge. The history of that university is about responding to challenges successfully and meeting those challenges both for its students and the people of North Carolina."
Comments
Duplicate programs
July 7, 2011 - 10:30pm — state_employeeRemoving duplicate programs may not save as much as many people imagine IF you keep the same number of students. If you have 100 students at School 1 and 100 students at School 2, closing one of the schools means the other has to find space (classrooms, dorms (if the students live on campus), study space, eating space, etc), faculty, and admin support for the increased number of students. Increasing class sizes may mean not having to hire the same number of faculty as the two schools had separately, but then you have to be sure the existing classrooms are large enough to support larger classes as well as dealing with the other space issues. Rmoving duplicate programs should be considered, but it's more complex (economically) than just assuming the cost will be cut in half--or even almost in half.
Good idea
July 7, 2011 - 6:32pm — nctorwartIf you can earn your law degree without being shot then you pass.
To Separate but Unequal
July 7, 2011 - 5:30pm — stateofmindInteresting point. There is no need for 2 law schools so close together. Perhaps just having the one law school at N C Central and saving the money by closing the law school at UNC- CH makes a lot of sense.
UNC cuts
July 7, 2011 - 4:58pm — igliigliThe first cuts should be all the sports teams and coaches.
That makes sense.
July 7, 2011 - 4:25pm — AgentPierceConsolidate duplicate programs that serve overlapping demographic and geographic areas. ..... Makes sense to me. Do it.
Separate but unequal
July 7, 2011 - 3:59pm — arickmondWhy does the State continue to support institutionalized racism? Why do we need HBCU's today? All the "regular" campuses of the UNC system must strive to meet quotas. Let's consolidate programs and stop duplicating administrative cost of offering the same degrees/programs at campuses that are less than 30 miles apart. Example, law schools at UNC and N C Central. Let's stop pouring our money into buckets with no bottoms. And last, but not leastly, let's close under performing school! And, but the way, let out of state students pay their fair share and after 5 years charge in state students out of ste rates. Why should I support a loser forever???/
Robbing Peter to Save Paul
July 7, 2011 - 1:06pm — dubious"Why is UNC-Asheville spared? Tom Apodaca is the second most powerful person in the state senate, he co-chairs the education budget committee, and UNC-Asheville is in his district."
Figures. You forgot to mention Western Carolina. WCU and UNCA are 40 miles apart and share the same region. UNCA has less than 4000 students! It less than is half the size of WCU. Yet WCU was cut to make sure UNCA was spared? If Mark Basnight had "protected" UNCW like this, the right would be out for blood. Just one more example that the Repugs are no better than the Democrats.
Worried
July 7, 2011 - 1:06pm — ewentzelBeing that I attend NCSU as a Doctoral student, the huge increase in tuition is really weighing heavily on my finances. The budget cuts will result in the loss of many important programs. Additionally, I work at UNC-CH, so these huge budget cuts will undoubtedly result in job loss in an econoy that cannot absorb more unemployed.
This is definite cause for concern.
Other campuses have to chip in to spare UNC-Asheville
July 7, 2011 - 12:48pm — Agent_PokeOK, here's a story to investigate. Right up there with Thom Tillis giving his staff raises.
In the budget bill, Tom Apodaca had a line inserted that mandated that the cuts be distributed to UNC campuses, but that UNC-Asheville be exempt from cuts. I.e., the other campuses must, in effect, chip in to spare Asheville.
It's easy to make an argument for sparing Asheville... that campus is an economic engine for the region, it brings businesses and jobs to Asheville, it brings research grants into the region, it has bright students from many backgrounds, we need bright educated people for our state, etc, etc. However, of course, those same arguments apply right across the system... Greenville, Greensboro, Raleigh, Fayetteville, right on down the line.
Why is UNC-Asheville spared? Tom Apodaca is the second most powerful person in the state senate, he co-chairs the education budget committee, and UNC-Asheville is in his district.
Cuts to UNC-Asheville would have been devastating... like the other campuses are being devastated. I'm glad Apodaca could see that. I just wish he and others would have stood up for the state in general, not just that particular local economy and local good. To Apodaca's credit, his committee did not cut as deeply as Thom Tillis and the House did, but he failed to stand up and say that the state overall is as important as his district and Asheville.
Thom Tillis does see the value in his staff, and wanted to reward and retain them. Ditto for Tom Apodaca and his district. But, for goodness sakes, why don't they apply the same standard to the rest of us out here in the citizenry?
After a Three year Delay,Academia feels the Depression
July 7, 2011 - 12:16pm — mike27513So well into Year Three of the Obama Depression, after three years of reduced State taxes- the UNC system is finally forced to react.
Sadly - non performing "Universities" are kept alive. Instead of closing obsolete race specific under performing diploma mills, redundant or non employable majors, and non-academic Sports Training Machines, the working class jobs- Maintenance, clerical and low level office jobs will be eliminated. Not high paid non-jobs like Adminstrators and VPs.
Always humorous to see how the Corrupt Machine politics plays out in this state.
Go all the way
July 7, 2011 - 12:02pm — Locomotive_BreathGiven how NCCU had been handling money, the cut there should be 100%.
Funding Sources
July 7, 2011 - 12:01pm — state_employee"However, UNC-CH has more private fundraising capacity than other campuses and pulls in a large amount of federal research money each year."
Unfortunately, most donors who contribute significant amounts of money want to specify how their money will be spent so they might designate it to a specific scholarship or to the libraries or to renovate a room. Federal grant money is awarded for specific purposes. The university can't divert that money to places that are normally supported by state funds. So, these two sources, however large they are for UNC-Chapel Hill, are probably not going to be much help in offsetting large state cuts.
Wonder if
July 7, 2011 - 11:50am — nancyncCan't help but wonder if we'll read exactly where they cut their budget in future 'reporting'?
My sad guess would be it won't be in administrative pay and benefits but much further down the line of employees.
And this was shocking to read: Tuition has increased an average of 39 percent in the last three years across the system.
Chapel Hill Donors
July 7, 2011 - 11:37am — keihinMaybe now the big donors to UNC Chapel Hill would spend a little more on academics and a lot less on a corrupt athletics program.