Cuts mean UNC must give back

UNC-Chapel Hill is scrambling to find about $2.85 million to give back to the N.C. General Assembly after it handed down a 0.75 percent budget cut last week to all state groups, including the UNC system.

Officials said the cut will put a strain on the University but not push it to the breaking point.

"It's all relative," Provost Robert Shelton said. "It's a significant amount of money. I'm not going to pretend that it's good news. I'm not saying it's going to be simple."

The nonrecurring budget cut will help the state cover hurricane relief efforts and will cost the 16 system schools a total of $13.3 million.

The University has yet to decide what can be eliminated, but Shelton said officials probably will follow past protocol - making a one-time cut across the board but protecting special projects such as scholarships and libraries.

"They've done really good by us," said Shirley Ort, associate provost and director of scholarships and student aid. "None of those cuts will be passed on to the students."

Ort said that if her office receives cuts, they will come from the administrative end and not from student aid. She added that both need- and merit-based aid will be protected.

Tuition hike talks also should remain unaffected, said Richard "Stick" Williams, chairman of the Board of Trustees.

"(The cuts) will have little impact on tuition discussions," he said. "The tuition task force has been specific on what (tuition) money can be used for. The BOT is guided by that view versus other needs."

The campus Tuition Task Force finalized proposals Thursday night to be passed to the board this week. These include three recommendations for increases, with ratios for resident and nonresident hikes of $250-to-$1,200, $300-to-$1,000 and $350-to-$800.

Shelton added that while the BOT might take the cuts into consideration, they will not be a driving force in the tuition decision.

"The good news is that it's not a permanent cut," he said. "A one-time cut doesn't detract or enhance the discussions that the task force has."

Areas that could see an impact from the cuts include maintenance, contracts and equipment purchases, said Rob Nelson, UNC-system associate vice president for finance.

"The level of this cut will not have an impact on the classrooms (or) instruction," he said. "As long as it's less than 1 percent, it shouldn't have an impact like cuts in previous years."

N.C. State University received the second highest budget cut in the system and will have to give back more than $2.7 million. East Carolina University has to return more than $1.4 million.

The main office of the UNC system and its related educational programs will have to find more than $1 million in their budgets.

UNC-Charlotte, UNC-Greensboro and N.C. Agricultural & Technical State University will have to give back between $500,000 and $900,000. The remaining UNC-system schools, as well as UNC Hospitals and the N.C. School of Science and Mathematics, will have to find less than $500,000 to return.

Members of the BOT's Audit & Finance Committee will discuss the almost $3 million cut during their Wednesday meeting. Elmira Mangum, associate provost for finance, said the committee will try to determine which cuts will least constrain the University.

Contact the University Editor at udesk@unc.edu.