Governor Purdue proposes more layoffs, program reductions

N.C. Gov. Bev Perdue proposed more layoffs, program eliminations and retirement incentives for faculty as a part of a 9.5 percent budget reduction for the UNC system.

Perdue released her budget proposal Wednesday, recommending a $3.2 billion cut in state spending. It was the first time since 1898 that a Republican-led N.C. General Assembly received a budget proposal from a Democratic governor.

Although the proposed budget reduction is severe and is expected to eliminate 1,900 positions, it is less than the 15 percent cut the University system had been preparing for as a worst-case scenario.

The University system has already suffered $620 million in cuts in the past four years and has already eliminated more than 900 administrative positions.

“It is simply impossible to absorb further budget cuts without adversely affecting the quality of the academic experience for our students,” said UNC-system President Thomas Ross in a statement.

Perdue asked the system to reduce the number of senior and middle management positions and to eliminate low-performing or duplicating programs — something the UNC-system Board of Governors has already been working to eliminate.

Universities will also be able to offset part of the cuts with the revenue generated from tuition increases. About 450 positions could be saved if the legislators approve the increases proposed by campuses, and 25 percent of the revenue generated will go toward financial aid.

Despite the tuition increases, Ross said the cuts might still be too heavy for campuses.

“With fewer faculty, staff and course sections, many more students would not be able to obtain the courses and academic services they need to graduate on time,” he said.

John Davis, a member of the board, said some cuts to the UNC-system will inevitably be unpleasant for faculty and students.

“There has to be cuts made somewhere and every department in state government and every recipient of state funds around the state is saying ‘not us,’” Davis said. “But I think in the final analysis everyone is going to have to share in the pain.”

Atul Bhula, the president of the Association of Student Governments, said he’s worried the final budget could be even more severe than the governor’s proposal.

“We’re only in the first steps of the process and ultimately what we have to do is make sure our state representatives understand the students are the future of the state,” he said.

“Investing in education is investing in North Carolina.”

The governor also proposed an employee retirement incentive for all state agency employees, UNC-system employees and community college employees for the 2011-12 fiscal year.

The recommendation provides a one-time $10,000 incentive for faculty who are eligible to retire with benefits and a $20,000 incentive for those who can retire with reduced benefits.

Thomas Carsey, a political science professor at UNC, said it is rare that a legislature would accept a governor’s budget proposal as it is and virtually unheard of when the governor is from one party and the legislature is controlled by another.

“We know there will be differences in not just the small levels about numbers or accounting, but there will be philosophical differences between Perdue and the legislature that will structure this debate,” Carsey said.

“There is no way in the world that the Republican legislature will just be like, ‘oh, this looks great’ and pass it.”

Jason Windett, a political science graduate student at UNC who also teaches state politics, said it’s going to be hard to determine how the legislature will receive the governor’s proposal.

“This is kind of ground-breaking area for North Carolina because it’s really going to define the political landscape for the next few years.”

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