UNC Plans For Cuts To Funding

Easley has asked most state agencies to prepare for cuts of up to 11 percent for the 2002-03 fiscal year, which starts July 1.

But Easley sent a letter Thursday to all UNC-system chancellors and UNC-system President Molly Broad stating that he would not recommend such drastic cuts to the UNC-system budget.

"I want to assure you that I do not contemplate similar levels of reductions in our education system," he wrote in the letter. "I understand fully that cuts of that magnitude in the University system would hurt the quality of education, and I will not recommend such actions."

The state's community colleges already have been asked to prepare for cuts ranging from 4 percent to 10 percent.

UNC-system officials said they are not sure how much of a cut to expect.

"It's hard to know before the governor presents his budget," UNC-Chapel Hill Provost Robert Shelton said. "The general answer is big."

Shelton estimated that the budget cut might range from 3 percent to 11 percent.

N.C. officials estimate that for 2002-03 fiscal year the state might be facing a budget deficit of more than $1 billion. State officials are constitutionally mandated to have a balanced budget -- forcing state officials to either trim the budget or raise taxes.

Shelton said the governor's office is doing everything it can to help education.

Because of the budget cuts this year, the system might see a lower percentage of cuts in the next fiscal year, he said. Since October, Easley has ordered two budget cuts for the UNC system, totalling about 4 percent or more than $60 million.

Shelton added that budget cuts will cause new hiring to slow down dramatically and there inevitably would be cuts in support staff. "I would be shocked if we didn't lose a few staff positions," he said.

Jeff Davies, UNC-system vice president of finance, said the system's financial officers are preparing a number of budget reduction scenarios for the governor.

In his letter, Easley identified several areas, like administration and travel, in which system officials could cut costs.

Davies said officials likely will trim unfilled positions in the system administration, which are funded in case someone is hired to fill the job.

"Cutting classroom activity would be one of our last possible proposals," he said.

Davies said the reduction scenarios will be available to Easley on April 3.

Fred Hartman, Easley's press secretary, said state agencies -- including the UNC system -- will not have any final numbers until the General Assembly resumes session May 28 and Easley presents his revised budget proposal. "I want to make it very clear that these talks about budget cuts are part of an ongoing, yearly process to reduce state spending."

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