Easley's Budget Plan Earns Mixed Reviews

The budget, which Easley proposed March 11, allocates additional funds to meet the growing needs of state universities but also recommends extensive cuts in operational funding for the UNC General Administration and other state agencies.

A spokeswoman from Easley's press office said the governor is committed to improving public education throughout the state. "The budget is an educational budget, committing resources to improving education and this includes public schools, community colleges and universities."

The budget also shows that Easley is committed to keeping the UNC system one of the finest in the nation, she said.

Jeff Davies, UNC-system vice president of finance, said he is pleased with the budget recommendations for the system, especially in light of the current budget shortfall, which is nearing about $800 million. "In recognition of the economy of the state at the moment, we are pleased that Gov. Easley has recommended funds for enrollment growth and the expansion of financial aid grants."

But the budget also calls for a reduction of $22 million each year in operational costs for the UNC system.

Davies said while he believes the reduction in operating expenses will clearly have a negative impact on the system, he is pleased that Easley will give chancellors flexibility in deciding how to replace the lost funds.

Easley's budget also endorsed tuition increases for the 2001-02 school year approved by the Board of Governors this year, Davies said.

Davies said UNC-system administrators, including President Molly Broad, and some chancellors will be in Raleigh in the coming weeks to lobby state legislators to approve the budget recommendations and emphasize UNC-system needs.

But state legislators are divided on Easley's budget recommendations for the UNC system.

Sen. Ellie Kinnaird, D-Orange, said she is disappointed with the overall cuts in operational funds for state agencies because they take funds away from needed programs. "We have come to the point in our budget where we are cutting necessary programs," she said.

Kinnaird said she did not know the specific impact of budget cuts on the UNC system but that agencies statewide are experiencing difficulties in areas such as employee hiring.

She also said she believes legislators are beginning to realize how the UNC system impacts the state. "Right now the emphasis is on economic development and the importance of the UNC system on that development."

Kinnaird said that while there is need for some improvement in the proposed budget, she believes legislators will support Easley's recommendations.

But Sen. Hamilton Horton, R-Forsyth, said he believes the budget shortfall shows the state cannot afford to give more money to the UNC system. "We simply can't afford to give more money to the universities right now."

Horton said he also opposes Broad's requests for additional state funding for enrollment growth while at the same time proposing a decrease in the academic calendar from 150 to 140 days.

He also said he believes state legislators are becoming upset with the increased presence of UNC-system leaders in Raleigh lobbying for funding. "The General Assembly is becoming aware and are beginning to resent the large number of university employees lobbying."

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