UNC System to See Minimal Cuts

The state budget, which the N.C. General Assembly passed Friday, will decrease the UNC system's recurring funding by about $14.5 million.

But UNC-system President Molly Broad said the budget supports a majority of the system's needs and provides new funding for areas like enrollment growth and need-based student financial aid.

The budget provides $28.4 million for enrollment growth, $12 million for distance education enrollment increases and $8.9 million for need-based aid.

Broad said full funding for enrollment growth was one of the UNC system's victories.

"If (legislators) had only partially funded it, it would cause a precedent that would easily have carried on in the years ahead," she said.

UNC system enrollment increased this year by about 7,000 -- only part of the estimated increase of more than 40,000 students between 1998 and 2008.

But Broad said she is worried about a reduction in faculty positions and a lack of funding for faculty salary increases in this year's budget.

"The University's competitive position will further deteriorate this year," she said.

Broad said UNC-system schools are vulnerable to raiding, which is when other universities lure faculty away with offers of higher pay and better benefits.

Student leaders also said they are mostly pleased with the budget, especially given the state's multi-million dollar funding shortfall.

"Considering the circumstances, I'm pleased with the outcome, especially considering the $8.9 million in need-based financial aid," said Andrew Payne, president of the UNC Association of Student Governments.

But Payne said a UNC-system Board of Governors study shows another $54 million is needed during the next two years to fully fund the aid program. The state budget provides only $17.8 million during the next two fiscal years.

Payne added that he also was concerned that student fees might be increased to cover high-speed Internet access, funding for which was cut from the state budget.

"I am afraid student fees in the technological area might increase," he said.

UNC-Chapel Hill Provost Robert Shelton said he is pleased with the University's share in the budget.

"Given the state of the North Carolina budget, which is dreadful, the University did well, and we have a lot of people in Raleigh to thank for that," Shelton said. "I think we should be pleased with how the whole budget situation turned out."

But he said state legislators might not have provided enough funding to protect some programs and services, especially considering recent predictions of a further economic decline.

Shelton said, "I think the final chapter on the University's budget is yet to be written."

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