Fiscal cliff threatens research at UNC

Research programs across the UNC system will be dramatically affected if more than $1 trillion in forced spending cuts — known as sequestration — goes into effect next year.

If President Barack Obama and members of Congress fail to agree on reducing deficits, analysts say the cuts, coupled with tax increases, could plunge the economy back into recession. That scenario is the so-called “fiscal cliff.”

“I don’t know of anyone who thinks that an automatic across-the-board cut is a sensible way to address the debt crisis,” said Barbara Entwisle, vice chancellor for research at UNC.

Entwisle said the cuts would result in a 7.6 percent reduction in federal grant support, or a loss of about $41 million for the University — but it remains unclear how the reduction would be felt.

“Either way, it would mean a tremendous loss to this campus,” she said.

In fiscal year 2012, the amount of research funding UNC received from all sources totaled $767 million.

Federal agencies, like the National Institutes of Health, provided 71 percent of that amount.

Joseph DeSimone, director of the Frank Hawkins Kenan Institute of Private Enterprise at UNC-CH, said 35 percent of the overall federal funding invested in research is allocated to the top 25 universities in the nation. UNC ranks number nine on that list and is a “research powerhouse,” he said.

As a result of the fiscal cliff, all 16 universities in the UNC system would suffer a total reduction in federal funding of $80 million — double what UNC-CH would lose — said Chris Brown, vice president for research and graduate education for the UNC system.

Administrators say federally funded research on the state’s campuses stimulates the state and national economies.

DeSimone said his research team is grateful for federal and state support of its research, which aims to translate new technologies into the private sector.

“A lot of hard-working people who pay taxes demand accountability on research,” he said.

He added that the goal of his work is to help improve the quality of life and the economy by addressing unmet needs in society, such as in fields like health care and vaccine research.

And from an international standpoint, Brown said the United States could begin to lose its leadership position in the world if the cuts are not made strategically and research suffers.

With less research, there will be no more breakthroughs in fields such as science and health, and the country would be unable to train the next generation of innovators, he said.

Entwisle said the state’s economy would suffer if there are less research enterprises to develop products with commercial value and employ local residents.

“I think every citizen of this country should be concerned about the national debt and how we are going to address it, while also investing in our future,” Entwisle said.

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