Financial planning and budget updates

When will these actions and proposed cuts take place?

This is a fluid situation with much work to do and conversations to be had before final decisions are made. We thought it best to make people aware of the direction we are heading while we are working with leaders across the University on next steps. Leadership’s aim is to be thoughtful and thorough while maintaining our academic integrity, financial viability and commitment to the state of North Carolina and its people.

What are the financial targets for centers and institutes?

We will work with centers and institutes leaders to reach a target of $4.8 million in savings.

Is there a deadline for changes to the centers and institutes?

Deadlines haven’t been communicated at this time.

Will these savings at centers and institutes include reductions in staffing?

We will work with centers and institutes to implement a process to find savings by identifying operational efficiencies, leaving a reduction in force as a last resort.

What criteria are being used to determine what academic programs will be cut beyond enrollment numbers?

Enrollment numbers are the primary consideration, including trends over several years. A small or temporary dip in enrollment is not a reason to consider cancelling a program. Also, there are some programs that support other programs; such interdependence will also be considered.

How will faculty be affected by these changes?

Some faculty will have the opportunity to accept incentives and retire. Many faculty will experience differences in how services (e.g. Information Technology, Human Resources) are provided as an outcome of ServiceFirst. Some faculty who work in centers and institutes may see funding changes. 

Why is the Elevate program ending?

The University recently implemented a new enrollment funding model, which provided predictable and alternative funding for faculty hiring and reduced the need for this additional centrally-funded faculty hiring program.

Is this the first phase of more cuts to come?

The decisions that the University is making are deliberate and future-focused. The environment at the state and federal level remains fluid. Therefore, it is hard to say that the current plan is conclusive.

How will we be informed of planning updates and action?

A Chancellor’s Forum series will be announced soon. The video conference sessions are being designed to keep everyone updated throughout this process. In the meantime, questions can be sent to the following email address: budgetquestions@unc.edu.

Submissions to this email will be used to guide the Forum agendas as well as provide feedback to our community in a timely manner. Please note that email submissions are subject to disclosure under N.C. Public Records Law.

When will the Chancellor’s Forums begin?

No date has been set yet, but they will be announced soon. Details will be shared on this website and in The Well newsletter.

Who is responsible for making decisions about procurement and catering?

Leadership will implement a process in partnership with units to achieve these savings and will provide guidance. Expected examples include evaluating projects and equipment procurement to bit to get the best return on investment, using judgment when planning meetings and utilizing meeting elements such as catering. The estimated cost savings from such discretion is more than $9 million.

What is the faculty retirement incentive program?

Several system institutions recently utilized a faculty retirement incentive program. Our intent is to work with the N.C. legislature to implement an incentive program for Carolina. It’s too early to know the program’s eligibility requirements or if we could extend it to other employees.

Are all vacant roles being eliminated and who is deciding if a vacant position is essential to the operation of the University?

Not all vacant roles are being eliminated. The savings target is based on eliminating slightly more than 20% of vacancies that have not been filled in over six months. Leadership will work with units to establish a process to achieve these savings while protecting the critical hiring process.

How many jobs will be impacted by the reduction in staff as part of the ServiceFirst initiative, and how are those decisions being made?

These reductions will not be across the board in all areas. Much of the savings will be achieved through attrition and by not refilling certain positions. However, in some cases, limited, targeted staff reductions may still be necessary. It is too early in the process to say where staff reductions will be found. We are gathering data, we are listening to leaders in these support staff areas to better understand how each works, and soon we will be engaging administrative support staff for feedback on a broader level. 

When will the reductions in financial aid for out-of-state students be implemented?

The reduction in financial aid available to out-of-state undergraduate students will apply to incoming first-year and undergraduate transfer students who enter Carolina beginning in fall 2026. Current undergraduate students and entering first-year students in 2025 will not be affected by the financial aid reductions.