Moeser said the state has allowed UNC a great deal of flexibility in deciding how to allocate University funds.
"In my opinion, the university system has been treated very fairly in the process," Moeser said.
"This is a serious problem for the state."
Moeser said there will not be any layoffs because of the budget crisis.
"We will not anticipate any new funds, which is bad news for salary," Moeser said.
"We are losing ... on a daily basis people to the Triangle."
Moeser also addressed University expansion.
He talked specifically about the Sierra Club's concerns that University development will damage the local environment.
Moeser said the University is committed to sustaining the environment during expansion.
He said UNC will respond to the Sierra Club's concerns about such issues as rainwater runoff in a point-by-point report currently in the works.
New methods of teaching also were introduced to the faculty.
The methods, introduced by Professor William Balthrop and Marian Moore, vice chancellor for information technology, focused more on interactive computer software than textbooks.
"I want to replace the textbook," Moore said. "Knowledge is doubling by estimate every 10 years."
Moore said that by replacing textbooks with laptops, students would gain more real-world experience. She also said faculty release time might be necessary for professors to learn how to use the software effectively.
Some faculty members in attendance met Moore's plans with skepticism.
A basic concern voiced was that textbooks are still an effective form of teaching and that they should not be entirely phased out.
In response, Moore continued to emphasize the quality of the technology available to UNC students and the innovative teaching methods it can produce.
Robert Shelton, UNC's new provost, was formally introduced to the council.
He said he had been touring various departments of the University so he could get a better feel for the campus.
"I can't begin to describe the personal and professional satisfaction I have had in the past 10 days at Carolina," Shelton said. "It is a pure pleasure to be here."
Interim Provost Dick Edwards was then honored by the council. For his efforts at the post before Shelton took office this month, he was given a sparkling blue hat and jacket which he graciously accepted.
He said, "I can hardly wait for my next outing at Finley Golf Course."
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