Broad: Searches' Cost Necessary

With the state facing a nearly $800 million budget deficit, some N.C. legislators have expressed concern about the UNC system spending more than $1 million since 1998 on chancellor searches.

According to The News & Observer, UNC-Chapel Hill spent more than $175,000 to find its new chancellor, making the search the UNC system's third most expensive in recent years.

East Carolina University spent $202,000 on its chancellor search last year, while N.C. State University used $184,000 two years ago.

And some state leaders said the search costs seem excessive in light of the budget deficit the state is facing.

"It seems to me that it's a lot of money," said Sen. Virginia Foxx, R-Guilford. "I am concerned about the money being spent on (the searches)."

Foxx also questioned the need for consultants, who are responsible for finding qualified candidates but who charge a fee equal to 30 percent of the new chancellor's annual salary.

Some UNC-system schools spent close to $100,000 on consultant fees alone -- an amount Foxx said seemed excessive.

But UNC-system President Molly Broad said a search for a new chancellor involves several steps, including the use of consulting firms to attract top candidates.

"I believe increasing the use of search consultants brings to the search committee candidates they would not otherwise be able to attract," Broad said.

She also said consulting firms ensure confidentiality to candidates who are already employed at other institutions.

But Foxx said because any state spending is tied to the state's budget deficit, system universities need to monitor spending closely.

She suggested that each school study every expenditure involved in the search for a new chancellor to identify ways to cut expenses.

But Broad said funds used for several of the searches have not been state funds. In the search for UNC-CH Chancellor James Moeser, a significant amount of nonstate funds were used, Broad said.

"The budget deficit that we are facing has to do with a shortfall in tax revenue," Broad said, adding the deficit is not connected to the search for new chancellors in any way.

And Sen. Eleanor Kinnaird, D-Orange, said the costs associated with chancellor searches do not typically affect the state budget deficit.

Kinnaird said the money for chancellor searches comes from individual campuses and said does not add to the state's budget deficit. The bill for chancellor searches might seem larger than usual because so many vacancies opened at the same time, she said.

Since Broad became president in 1997, eight of the 16 UNC-system chancellor positions have come open.

"There have been an extraordinary number of vacancies this year," Kinnaird said.

"That made the bill look a lot bigger."

The State & National Editor can be reached at stntdesk@unc.edu.