House calls for 17.4 percent cut

It might have not been as high as 30 percent, but it was enough to scare UNC-system administrators.

The N.C. House appropriations subcommittee on education released its proposed budget for the upcoming fiscal year, calling for a 17.4 percent cut, $483 million in state funding for the UNC system. Even though the cut is lower than administrators had recently heard in conversations with legislators, the reduction is high enough to affect the academic core of the universities.

To convey the magnitude of the cut, UNC-system President Thomas Ross said in a press release that the cut would be equivalent to the combined amount of annual state appropriations for five of the UNC-system schools: UNC-Asheville, UNC-Greensboro, UNC-Wilmington, Western Carolina University and Winston-Salem State University.

The legislative proposal officially recommends a 15.5 percent cut for the UNC system, but administrators factored in other line items — including a reduction of $37.6 million in financial aid funding — to come up with a net cut of 17.4 percent.

At last week’s UNC-system Board of Governors meeting, administrators discussed the possibility of a 15 percent cut in state funding. That cut would eliminate 3,200 positions — including 1,500 faculty — 9,000 course sections and 240,000 class seats systemwide. The system has not yet released projections for the 17.4 percent cut.

“Permanent net cuts totaling nearly $483 million could not be absorbed without inflicting irreparable damage to our academic quality and reputation,” Ross said.

In the last three years, the system has already cut a total of $575 million, 23 percent in expenses and nearly 900 administrative positions.

UNC-CH Chancellor Holden Thorp also released a statement about the potential impact of a permanent cut of more than $75 million on faculty and course offerings at the University.

Thorp said cuts to the UNC system were “disproportionate” compared to proposed cuts for other education divisions, N.C. Community College system and K-12 public eduction.

The subcommittee’s proposal reduces state funding for community colleges by 10 percent and public schools by 8.8 percent, respectively.

Representatives have previously said the University system has more resources at its disposal, such as tuition increases and endowments, compared to the other divisions, so it can absorb a larger share of the cuts.

Rep. G.L. Pridgen, R-Hoke, vice chairman of the House subcommittee, said the chairmen felt the UNC system could shoulder the burden of the cuts out of the three educational divisions that receive state funding.

He said the subcommittee chairmen were forced to cut a disproportionate amount to plug a state budget shortfall of $2.4 billion.

“The UNC system has a lot of money coming in,” Pridgen said. “We’re in a mess and we have to get out of it somehow.”

Hannah Gage, chairwoman of the UNC-system Board of Governors, expressed concern at last week’s meeting about the damage universities would sustain from a higher-end cut.

“Anything over 10 percent would be devastating,” Gage said at the meeting.

Jon Young, provost and vice chancellor for academic affairs at Fayetteville State University, said the cut would force university administrators to eliminate more than 100 positions — roughly half of which would be faculty.

Decreased faculty and course offerings will jeopardize students’ ability to graduate on time, he said.

“The House evidently does not care about the future of the UNC system and does not care about the future of the state,” he said.
Members of the subcommittee will now have an opportunity to propose amendments to the budget proposal in subsequent meetings.

Pridgen said any amendments suggesting a re-evaluation of funding for a specific item will require an explanation of where extra funding will come from.

Once the budget has been passed by the subcommittee, the proposal will go to the House floor for a vote. Both the House and Senate must compromise on a budget to send to Gov. Bev Perdue by the end of the fiscal year on July 1.

“We are mindful that it is still early in the budget process and will continue to work with legislative leaders to preserve the quality of a UNC education,” Ross said.

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