Message to Students: University Budget Update
January 12 , 2009Campus Budget Update
Welcome back! I send my best wishes for the new year as we begin a new semester. Our faculty, staff and the administration look forward to working together with you this spring.
As you all know, the economic crisis is on everyone's mind. I'm sure it's on the minds of those of you who look to enter the work force this summer. But before I say a few things about that, let's remember that Carolina is a place of great optimism, and that we produce good news even in the worst of times. Here's some recent examples: two of your colleagues are Rhodes Scholars, Lisette Yorke and Aisha Saad. It should be quite a semester for Carolina athletics: men's basketball, women's basketball and baseball are all contending for national championships. And undergraduate applications are running well ahead of last year, so the class that we admit this spring will be stronger than ever. I can't wait to see what happens when this crop joins us in the fall.
Now for the serious stuff. Last fall, I promised to keep everyone up to date on how the economic crisis affects Carolina. This year, we've taken one-time budget cuts totaling about 5 percent. It could be April or May before Governor Perdue and the North Carolina General Assembly can make any judgments about the revenue forecast and next year's permanent budget. Our state appropriations are very generous compared with those at many other public universities, accounting for nearly a quarter of Carolina's total budget.
Last week, all of the UNC campuses responded to a request from President Bowles about how they would handle permanent state budget cuts of 3 percent, 5 percent and 7 percent next year. Our focus was on doing all we can to protect the quality of academics and the education we provide to you. These are only planning scenarios. But there would be unfortunate consequences if we were forced to act on the most extreme scenarios. That could mean everything from cutting enrollment, offering fewer courses, eliminating some instructional and support programs, or losing faculty and staff positions.
We’re preparing ourselves for these possibilities as a community. But we’re still very fortunate compared with many other campuses coping with the financial crisis. Despite a challenging federal funding environment, faculty research funding is strong. We're benefiting from former Governor Easley's fast-track plan to boost the state's construction industry and economy. Last week, the state gave final approval to move ahead with the Dental Sciences Building previously authorized by the General Assembly.
Making responsible choices to position the University for economic recovery requires tough decisions. But I'm sure we’ll make wise decisions because we have what it takes to do the right things as a community. As I've said before, we have the best students in the world. And the magnificent things you're going to do when you leave Carolina inspire us all. That's why we're here.
We believe in the creativity of our students, faculty and staff, so we are asking folks to share their ideas for creative cost-cutting measures. Please e-mail your suggestions to budgetideas@unc.edu.
I will keep you informed as the year progresses.
Sincerely,Holden Thorp