Chapel Hill and University officials have been working together to determine what effect UNC budget cuts will have on the town, but only one thing remains certain — they don’t know.
But as UNC parcels out cuts to individual schools and departments to make up for its 18 percent state funding reduction, town leaders are worried the budget crisis will significantly damage Chapel Hill industries.
Town Manager Roger Stancil said he thinks cuts could harm the town in the long run if they damage the University’s academic caliber and image as a research institution, a major draw to Chapel Hill.
“A big worry is to what extent those cuts affect the quality of the University,” he said.
Chapel Hill Mayor Mark Kleinschmidt said he has heard concerns from town business owners.
He said University students and faculty pour millions of dollars into the Chapel Hill economy each year by supporting local businesses and real estate and rental markets.
The University also contributes to the town by sharing costs on Halloween, paying property taxes and contributing funds to Chapel Hill Transit.
Construction ends, jobs go
Kleinschmidt said UNC is Chapel Hill’s main employer, a relationship credited with keeping the town’s unemployment rate below the national average.