Message to Faculty and Staff: University Budget Update
January 8, 2009Campus Budget Update
Dear Faculty and Staff:
I send my best wishes for the new year as we begin the spring semester. Your dedication, hard work and commitment to the University drive our success in creating and sharing the knowledge that benefits the people of North Carolina and beyond. Thank you for all you do.
Last fall, I promised to keep you informed about the impact of the economic crisis on the University’s budget. During this fiscal year, we’ve already taken one-time cuts of 5 percent – about $25 million – in our state appropriations. It could be April or May before Governor Perdue and the General Assembly can make any judgments about the state revenue forecast and next year’s permanent budget. State appropriations account for nearly a quarter of our total budget. We have other revenue sources, but most of them – including tuition, federal research grants, patient revenues and private gifts – come with restrictions on their use. It’s also not clear how this crisis will affect these other revenue streams.
This week, UNC system schools responded to a request from President Bowles about how the campuses would handle permanent state budget cuts of 3 percent, 5 percent and 7 percent. In our response, we balanced our obligation to provide the best education for our students and serve the state, while also doing all we can to protect people’s jobs. If cuts of this magnitude occurred, they would affect the quality of our academic programs, the strides we’ve made in faculty research and scholarship, the efficiency of the work of our staff, and some of the many ways we serve North Carolina. Depending on the extent of the reductions, we might have to reduce student enrollment, offer fewer classes, eliminate some instructional and support programs, and lose faculty and staff positions.
Remember, these are only planning scenarios. If economic conditions force layoffs, we would follow University and state policies and practices that protect the rights of employees. There is no campus-wide hiring freeze, but I’m asking every unit to scrutinize any vacant positions and fill only those that are absolutely necessary and only with vice chancellor approval. In some units, select faculty searches have already been suspended as a prudent step.
Overall, we're still fortunate compared with many public universities. Student applications are running far ahead – in double-digit percentages – of previous years, and the quality of students who want to be Tar Heels is stronger than ever. Despite a challenging federal funding environment, our faculty research funding is strong. We have talented and committed staff who all make this campus a special place. We’re benefiting from Governor Easley’s fast-track plan to boost the state’s construction industry and economy. Earlier this week, the Council of State gave final approval to move ahead with the Dental Sciences Building, which was authorized last summer by the General Assembly.
Making responsible choices to position the University for economic recovery requires tough decisions. I encourage people to share their ideas for creative cost-cutting measures with their supervisors, department chairs, deans and vice chancellors. Or you can send an e-mail to budgetideas@unc.edu.
With your help, we will get through this challenging period. I know we have what it takes: The Carolina spirit will flourish, despite these financial obstacles.
I pledge to keep you informed as the year progresses.
Sincerely
Holden Thorp