Officials: Plan Will Cover DPS Shortfall

The budget gap -- more than 13 percent of DPS's operating budget -- comes from adding new expenses for the 2002-03 academic year to the 2001-02 budget.

The new expenditures include a contracted contribution to the Chapel Hill Transit Authority for fare-free busing, which began in January, and increased operational services for park-and-ride lots. DPS is also expecting to lose more than $300,000 in permit and visitor parking revenue because of spaces lost to construction.

The total DPS budget for 2001-02 was about $13.3 million. The projected budget for 2002-03 totals $15.4 million, leaving a projected shortfall of about $2 million. Without the $2.1 million raised by the parking proposal, DPS would be unable to cover the additional departmental costs.

Carolyn Elfland, associate vice chancellor for campus services, said covering DPS's costs for next year is important. She said a proposal from the Transportation and Parking Advisory Committee that asked the University to contribute about $265,000 next year is impractical considering recent state-imposed budget cuts.

"The vice chancellors felt it was not appropriate to budget that amount of money in these budgetary times," she said.

The administration's parking proposal would generate additional funds by charging for night parking and raising the cost of day permits.

Student leaders oppose the plan, saying it endangers students and denies them access to campus. The UNC Board of Trustees will vote on the plan Thursday.

Connie McPherson, assistant director of fiscal services for DPS, said budget planners look at total expected funding sources and expenses, then make changes to make the two amounts meet.

"Each year, we look at our expenditures and revenue and set a balanced budget," McPherson said.

DPS officials must submit the budget, which will take effect July 1, by June 30.

Elfland said almost all of the additional funds DPS needs are the result of the costs from campus projects in the Master and Development plans. "If we didn't have the Development Plan, we would be only asking for $174,000," Elfland said.

The two biggest portions of DPS's 2001-02 expenses are used for personnel compensation and contributions to the transit authority, which constitute about 28 percent and 26 percent of the $13 million total, respectively. The main source for DPS funding is fees paid for permits, metered and visitor parking, and fines, which together make up about 65 percent of the DPS's total revenue. Additional income comes from student transit fees, a one-time employee fee and money from University departments, which currently contribute .052 percent of their operating budgets to DPS.

Although all calculations and plans are made using projected numbers for the next year, McPherson said DPS projections have been accurate in the past. But she said unknown variables always could throw off the numbers and force changes to the budget.

Administrators have said the proposal on the table is only a temporary measure. They said they hope to draft a multiyear plan soon to avoid shortfalls in the future.

"These expenses that we're looking at are not one-time expenses," Elfland said. "They will recur in the future."

The University Editor can be reached at udesk@unc.edu.