UNC pauses HR actions, awaiting guidance on UNC System-wide personnel cap

UNC is temporarily pausing all human resource actions while awaiting further guidance on how the campus will implement a new UNC System-wide personnel cap, according to a statement from UNC Media Relations.

“The University anticipates more guidance from the UNC System Office this week and will share updates regarding its plans to implement the personnel cap,” Media Relations wrote to The Daily Tar Heel on Wednesday. 

In a June 12 memo to chancellors, UNC System President Peter Hans announced new restrictions that limit salary spending, employee headcounts and hiring across all System campuses. Hans wrote in the memo that anticipated reductions to the state’s budget and potential federal funding changes influenced the new policy.

Under this personnel cap, all wages and administrative employee numbers will be capped at their April levels. All new faculty and staff hires must receive chancellor approval or approval from a designated administrator — such as the Chief Financial Officer or the Chief Operating Officer.

UNC Employee Forum Chair-elect Rebecca Howell said she has heard several concerns from staff about how the personnel cap will be implemented at the University. She said she has received questions about whether the policy will lead to reductions in force, unfilled positions or changing workloads — questions that she doesn’t yet have all the answers to.

“The uncertainty of what this means is the biggest challenge at this point in time,” Howell said.

Howell said she has not yet received much guidance from the University about how the personnel cap will affect employees.

The June 12 UNC System memo also advises campuses to review the necessity of all contracted services. It states that any extensions, renewals or new contracts valuing over $100,000 should only be entered into with approval from the chancellor or the appointed CFO or COO.

UNC System Media Relations wrote to The DTH that Hans described that cap as a “‘prudent and measured approach’ given the current budget uncertainty.”

Although the N.C. General Assembly has not yet passed the biennial state budget, versions created by the N.C. House and the N.C. Senate both include reductions to UNC System funding.

Lawmakers in the Senate have proposed over $180 million in cuts to public university funding, including limiting money for UNC System schools’ centers and institutes. The House budget proposal includes reducing the UNC System budget by $130 million over the course of the next two years. 

The legislature sets out to approve its budget before the start of the next fiscal year, which begins on July 1. However, multiple lawmakers, including Republican House Speaker Destin Hall, have suggested that reaching a finalized budget before the end of June is unlikely — meaning that the UNC System may not be certain of its total funding until after the fiscal year has begun.

Along with uncertainty surrounding state funding, System campuses also face threats to federal funding. Nationwide, universities have collectively lost billions of dollars from the Trump administration’s cuts to research grant programs.

“If the Trump administration's cuts to science and education go through, the North Carolina economy is going to be devastated,” said biology professor Mark Peifer, who works in a lab that receives federal grant funding.

Peifer said that given the uncertainty of the System’s budget, the personnel cap makes sense to him. However, he said he wishes faculty and staff were receiving more information about the new policy and what it means for the University. 

“These are challenging times, and open communication is helpful,” Peifer said.

The only reason Peifer learned about the personnel cap is because he needed to hire a new research technician in his lab near the end of the spring semester. He said the process was routine until around the time when he was preparing to interview candidates and learned that all new hires needed to be approved by the chancellor’s office.

It took almost six weeks before the position was approved. While running a lab with one less technician was inconvenient, Peifer said he understands why it had to be done.

“You don't want people going around spending money that isn’t there,” Peifer said. “So, it’s just going to be a period of adjustment.”

@alice__scottt 

@dailytarheel | university@dailytarheel.com

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