University Spending Questioned

The decision to pay Vice Chancellor Susan Ehringhaus her full salary -- despite the fact that she is stepping down from her position as the University's general counsel -- has drawn criticism from the public and some state leaders. The (Raleigh) News & Observer reported last week that Ehringhaus' compensation will total $376,000 over two years.

"It has certainly affected my perception," said Sen. Virginia Foxx, Watauga. "It's affected others' perception, too. It really does seem the (budget) problems are not as great as (the University) likes to make them."

Ehringhaus will spend eight months working in Washington, D.C., on the University's dime before returning to Chapel Hill, where she will take a faculty position in the UNC School of Law.

Foxx said paying someone who is not doing anything for the University for the better part of a year is unacceptable and not a proper use of money. "It's a mistake. It's a sign that the chancellor and the administration are out of touch."

But UNC Provost Robert Shelton said UNC's actions were appropriate given the circumstances and the precedence for the decision.

"It's common when someone from the administration returns to the faculty to give them a sabbatical," Shelton said. "She is getting paid as someone who served as vice chancellor and legal counsel for a very complex institution."

Rep. Bill Culpepper, D-Chowan, a key House leader, said that he understands the public's reaction but that the issue is not as serious as people have perceived.

"I know (Ehringhaus) personally, and she's probably well worth the salary she's getting, but it certainly didn't look good in the press," he said.

"I don't see the (Ehringhaus) situation being a catalyst for a big overhaul of how universities are looked at."

Senate Majority Leader Tony Rand, D-Cumberland, said he has been approached by several people concerned about the issue of Ehringhaus' salary. "I'm sure there will be questions raised about it (in the legislature)."

Enhancements on UNC's campus -- including the addition of a ram statue and the slated installment of a large video board at Kenan Stadium -- could also increase criticism from legislators and the public in light of the foundering state budget, even though those projects were funded by private dollars.

But Shelton said people do not always differentiate between University spending and outside donations. "I do think that we have always -- and especially now -- had an obligation to be clear in what we do."

He said the statue and the large video board at Kenan were funded by outside donations allotted specifically for those projects. If the project is not completed, the University loses the money.

"We have to consistently get across the fact that some people donate money for a particular (purpose)," he said.

UNC Chancellor James Moeser said the University has been cautious when examining plans for privately funded projects because of public perception.

Moeser said UNC decided to delay the building of the large video board and the lighting of Morehead Bell Tower, both of which were funded through outside donations.

But Foxx said that no matter UNC's efforts, spending might cause the public to question where the money is coming from. "I think people say 'If they can raise money for those types of things, why can't they raise money for other things?'"

Despite the controversy surrounding university spending, UNC Board of Trustees member Richard Stevens, who was recently elected to the N.C. Senate, said improvements through outside donations are necessary.

"The University will not keep its strength unless we continue to have contributions," he said. "It make us a great university versus an average university."

State & National Editor Elyse Ashburn contributed to this article.

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