Budget Can Affect UNC System

Clinton Metcalf, the associate vice president for state government affairs for the UNC system, said the budget crisis of this year will create problems for the universities' financial requests.

"We are, of course, enormously concerned about the shortfall of revenue in the state and the impact that could have on all of our universities, not only this fiscal year but also for the budget the legislature will adopt for next year," he said.

Metcalf said the system is essentially part of the government itself and when they are having money problems, it directly affects the universities. But he said the General Assembly has traditionally supported university legislation.

"We know from years past that there is a strong understanding of the values of the university system to the state, and that there is strong interest to continue to try to strengthen the (system)," Metcalf said.

Metcalf said the $3.1 billion higher education bond is an example of the great deal of support the General Assembly has shown to the UNC system.

Metcalf said the enormous support for the bond referendum on Election Day showed the General Assembly that they made the right decision when they unanimously decided to put the issue up for referendum in 1997.

"In effect, (the passage of the bond) reaffirmed the support shown among the legislators themselves for the bond and their good judgment for bringing it forward as a referendum," he said.

The bond, which will fund construction and building repair costs at all UNC-system campuses and community colleges passed with more than 70 percent of the vote. "Three out of four persons who cast their ballots on that bond issue Nov. 7 voted for the passage of the bond," Metcalf said. "I don't recall another issue on any subject passing statewide with that margin."

Despite legislative support, Metcalf reinforced the fact that no matter how much the legislators want to help the universities, it might not be possible in all cases.

"We recognize that the legislature will be limited in what they will be able to do for all agencies, including the universities, in the state of the fiscal shortfalls this year," he said.

The system will be sensitive to the current budget shortfall when communicating with the legislature, Metcalf said.

"It would be much like a family that has suffered economic difficulties and Dad says, 'we're going to need to cut back.' Everyone has to do their part," he said.

Metcalf said the budget will still be one of the UNC system's primary concerns this year, especially concerning full funding for need-based student financial aid programs and attention to recruiting and retaining faculty on all UNC-system campuses.

He added that the highly divided House -- where the Democrats hold just a four-seat majority -- which might seem like a roadblock to the UNC system, should not make much of a difference.

"I've found strong support and strong issues on both sides of the political chambers," Metcalf said.

House Minority Leader Leo Daughtry, R-Johnston, also said the split will not impact the system's lobbying efforts because the UNC system has had bipartisan support.

Sen. Tony Rand, D-Cumberland, said the divided House will only be a minor roadblock. "Anytime you have such a close equation, some problems are bound to occur," he said.

But Rand said despite some minor friction, there should not be any real problems.

After being elected House speaker, Jim Black, D-Mecklenburg, announced that all house committees would be co-chaired by members from both parties.

Rand said he does not think Republican co-chairmen will be any tougher for system lobbyists to negotiate than Democrats.

He also pointed out that there were no problems when the House was under Republican control in 1995 and 1996.

Rand said this is because most legislators, as well as the people of North Carolina, hold the UNC system in high regard. He said the General Assembly is highly populated with graduates of the UNC system, which helps during budget negotiations.

One aspect experts seem to agree on is the system's method for lobbying. Metcalf said lobbying as a whole, rather than having the schools do so individually, is in the system's best interest.

"The budget actually originates on each campus with the chancellor, then it goes to the president of the universities and the Board of Governors who puts all the requests together for the system," he said. "It's a process that works very well."

Rand added that he does not think lobbying individually would give any school an advantage over others.

"Some years you might get more money, others you might get less. It all depends on what's available."

The State & National Editor can be reached at stntdesk@unc.edu.