Message to Students: University Budget Update
November 6, 2008Dear Students:
We know the global economic crisis will affect the University's budget in the coming months and years. Short term, here's what that situation means for us. North Carolina has cut one-time (non-permanent) state appropriations by 4 percent. We expect to be asked for an additional 1 percent any day now. To put that in perspective, state appropriations equaled $574 million, or 22 percent, of Carolina's total operating budget. A 5 percent cut adds up to about $25 million.
We're leaving decisions about the state reductions to each vice chancellor and dean; they know best how to minimize the effect on our people, programs and the quality of the education we provide to you and your classmates. We're committed to protecting the value of your Carolina diploma.
To be prudent, we're planning for the likelihood of permanent(recurring) state budget cuts for fiscal 2009-2010 because revenues are expected to decline. In the event of a permanent state budget cut, we would carefully scrutinize all University operations and programs.
We're in better shape than many public universities that have been forced by their state's circumstances to make very difficult budget decisions over the past several months - even before the current global financial meltdown. In North Carolina, we can be grateful for the historically strong support that public higher education receives from our General Assembly. Faculty research funding has stayed strong despite an already challenging federal funding environment. The successful Carolina First Campaign has strengthened teaching, research, and public service along with the endowment - and set the bar high for continued private support.
These are extraordinary economic times, and the global financial crisis and its ripple effects create uncharted territory for most of us. We're closely examining everything that we do to make responsible choices to position the University for the economic recovery. We're committed to getting through this rough period as smoothly as possible with your help, cooperation and patience. And we pledge to keep you informed.
Sincerely
Holden Thorp