Officials lobby to stave off worst budget cut scenarios

UNC-system officials aren't waiting until July to prepare for the challenge of severe state budget cuts.

Although some cuts are imminent UNC-system officials are trying to ensure that higher education won't be severely damaged.

After the release of a worst-case scenario from UNC-Chapel Hill" UNC-system president Erskine Bowles is working to keep permanent budget cuts below 5 percent.

""The challenge starting July 2009 — if the legislature makes us make these cuts permanent — then those dollars will be taken out of the budget and lost and gone forever"" said Rob Nelson, UNC-system vice president for finance.

The danger of permanence

Come July, legislators will have to consider the long-term effects of permanent cuts, which would slash funds from the UNC-system budget every year hereafter.

Permanent cuts at 5 percent could mean a loss of 121 faculty members and 282 courses and larger classes.

But at permanent cuts of 7 percent or more, enrollment would be restricted by about 3,400 students — a fate that Bowles and other officials refuse to allow.

I think 7 percent is when you really start to see the number of faculty eroding to the point where we have to worry about the faculty-student ratio so much that we might … reconsider where we are with enrollment"" said UNC Chancellor Holden Thorp.

Making the system's case

While Thorp and UNC Board of Trustees Chairman Roger Perry have confidence in Bowles' negotiations with the legislature, revenue loss might just be too extreme to accommodate the system's needs.

They are faced with some difficult decisions" and I think they'll do the best they can for us Thorp said.

But I think there's a lot that's unknown right now because the governor doesn't know what she's going to see after April 15" and we don't know what the federal relief is going to be. So those are two huge wild cards.""

Perry" who said he doesn't expect the legislature to disagree with Bowles' aims" said he and other trustees are nevertheless ready to call legislators with whom they have relationships to discuss UNC's needs.

""We trust the chancellor to figure out where to make those cuts. But we're going to be team players and participate in this discussion"" Perry said. But I have a lot of confidence in our legislators to make good decisions. I have a lot of trust in our new governor.""

Competing state interests

N.C. Sen. Tony Rand" D-Cumberland sits on the appropriations committee with UNC close to his heart.

But the state's mandate to balance the budget is top priority which will yield competing interests" he said.

""It's a very difficult balance" Rand said. Each institution is very important to its constituency but North Carolina has for a long long time since 1789 valued higher education" and we'll continue to do that.""

And while officials are wary of permanent cuts"" Rand said they won't be a long term problem.

""It's not much trouble to spend more money" if you have the money. And the education budget usually gets first attention" Rand said.

N.C. Rep. Verla Insko, D-Orange, is less optimistic that the state will replenish the budget even if revenue increases. If cuts of more than 5 percent are permanent, programs at system schools will simply disappear.

It would be hard to put those back in the budget if they were removed completely. When we have more money those programs gear back up with a whole new application process" and it will take work to explain them" Insko said.

Insko explained that with one-time cuts, the core of programs can survive until an economic upswing.

But the argument could fall on some deaf ears.

Most General Assembly members are very supportive of the University"" Insko said. But we all have our own priorities.""


Contact the State & National Editor at stntdesk@unc.edu.