Budget cuts lead administrators to fear for UNC’s future

The threat of a sustained economic recession coupled with unprecedented cuts in state funding has UNC officials fearful for the University’s future.

The loss of about 18 percent or more than $100 million in state funds this year — the largest amount for any UNC-system school — has forced University administrators to make drastic cuts across campus for the third year in a row.

While the full effect of the cuts can’t be measured until classes are under way, students can expect larger class sizes, said Karen Gil, dean of the College of Arts and Sciences.

“A class that usually holds 30 to 40 students may now have 45 students,” Gil said.

University administrators are concerned about the overall effect of cutting campus programs, faculty retention, further tuition hikes and funding for financial aid programs for next year if the current budget trends continue.

“The cumulative impact is one that really matters to me. That over time if we continue to increase the size of our classes, it changes the quality of the undergraduate educational experience for our students,” Gil said.

The college lost a total of $10 million in state funding for the 2011-12 fiscal year but was not the hardest hit unit at UNC, relative to its size.

The Institute of African American Research was forced to eliminate nearly 40 percent of its budget. A portion of that cut came from the removal of the center’s director, Executive Vice Chancellor and Provost Bruce Carney said.

Carney said despite the decision to delegate the largest percentage of cuts to some of UNC’s minority centers, the University is still committed to the promotion of diversity.

“The Office of Diversity and Multicultural Affairs received only a 4 percent budget reduction,” Carney said. “If I had to take money from a less functional unit and put it somewhere, that’s where it would go.”

Gil said the cuts to centers will either directly or indirectly affect all areas of campus.

The UNC-system Board of Governors approved a 6.5 percent tuition hike earlier this year, and the University was awarded $8.5 million this summer for enrollment growth from the N.C. General Assembly. The two sources combine to total about $16.5 million, which has lessened the impact of the cuts, Carney said.

Further tuition increases will probably have to play a large role in supporting UNC’s academic quality, he said.

Faculty retention is another major concern for University officials. For the third consecutive year, all faculty salaries are virtually frozen.

“My bigger concern isn’t so much the administrative side — it’s holding onto our best faculty,” Carney said. “The morale with these cuts and the lack of raises is very tough.”

Chancellor Holden Thorp said in May that faculty retention is at the top of the University’s list of budget-related concerns.

Financial aid appears to be one sector of the University that has remained relatively constant in the amount of money it gives out, said Shirley Ort, associate provost and director of the Office of Scholarships and Student Aid.

“We’re doing OK this year,” Ort said. “We have been saving money that we use for student awards and building reserves to help us through this.”

She said there wasn’t as much growth in the number of students applying for need-based aid this year compared to past years.

The average need and amount that resident undergraduate students were granted increased from $14,270 last year to $15,071 this year, Ort said. Out of that difference, only $300 was as a result of tuition increases.

Both Ort and Carney said they are concerned about financial aid for next year because state and federal funding are still uncertain, and the office has already used a substantial amount of money from its reserve funds this year.

Contact the University Editor at university@dailytarheel.com.