As the state prepares its final budget, the House is eyeing a cost-cutting measure that could save North Carolina $13.9 million, but would also impact scholarship programs at each campus of the UNC System.

In 2005 the General Assembly included a provision to permit campuses within the UNC System to charge in-state tuition to out-of-state students who came to North Carolina on scholarships. This provision, which allowed scholarship money at the state’s institutions to go further and bring in more out-of-state students, has been challenged by the House as the legislature seeks ways to balance the state’s budget.

The elimination of the subsidization would affect all merit scholarships available to out-of-state students, including the Parks and athletic scholarships.

Chancellor Jim Woodward said this budgetary cut would impact the University’s academics and athletics.

“Were athletes to be excluded from this coverage then our athletic program would have to raise more money – the difference between in-state and out-of-state tuition – for all of the out-of-state athletes,” Woodward said. “The Park Scholarship program would have to raise more money in order to pay the tuition of out-of-state students.”

Woodward said the programs wouldn’t be able to afford to pay more, and would instead just cut scholarships.

“In reality what would happen is that we would have fewer Park scholars because we would have essentially the same amount of money,” Woodward said. “But we would be using it to pay some out-of-state tuition rather than all in-state tuition.”

Woodward said smaller universities within the system would be affected more directly from the lack of subsidization as they benefit more from its implementation.

“The smaller institutions benefit especially becaue of the ability to attract merit schaolarhip students and pay in-state tuition,” Woodward said, though he said the state is simply looking for the best way to erase its deficit. “The legislature is confronted with hunting money to cut everywhere.”

Woodward said the measures the state is exploring don’t come as a surprise to administrators, since they’ve known the cuts would come for some time.

“We have known all along that there is no easy way,” Woodward said. “If you only had to choose bad and inefficient programs to cut, that would be easy, but the budget deficit is too large for that to happen. This is an understandable step in their process at arriving at a final budget.”

Woodward said while the House is considering removing the provision, Senators aren’t yet convinced it’s not important to the UNC System for it to remain in the budget.

“Fortunately we have leadership in the Senate and House that understands what the scholarship program is about,” Woodward said. “We certainly hope they’re successful on our behalf and on behalf of all the campuses.”

Woodward said the legislature was seeking to involve all citizens in helping the state recover during the economic crisis, but said the yoke placed on students may be too heavy.

“There is no single cause for the budget deficit. I wish there was one group we could blame it on and then go after them to fix it.” Woodward said. “Every constituent group will participate or have to participate in dealing with it. They’re talking about increasing taxes so citizens across the state will have to participate, so yes the students will have to pick up a piece. Is it a fair piece? Well I could probably argue with them.”

Woodward said the job of the state should be to keep college costs low.

“My view is that we need to and we’re obligated to keep the cost of going to college as low as possible for our students,” he said. “The long term beneficiaries are all the people of North Carolina if we do that.”

Woodward said he didn’t think the Universities were being expected to take too much of the burden in the budgetary recovery, but said he wished it didn’t come with such bad side effects for students.

“I wish we weren’t going to have tuition increases. I wish we weren’t going to have the possibility of cuts that impact our scholarships,” Woodward said. “But I think it’s just a natural part of trying to close a big budget gap.”

Vice Chancellor for Business and Finance Charlie Leffler said while cuts and hikes were impacting the University, NCSU would continue to be a great value in education.

“N.C. State has always been a good buy and will continue to be a good buy,” Leffler said.

Leffler and Woodward said there will be more opportunities for students and faculty to speak out on proposed budget cuts in the future. Former chancellor James Oblinger scheduled a budget forum where he and Leffler would answer questions and entertain ideas about budget cuts, but Oblinger’s resignation took priority over the proposed 18-percent cuts that day, according to Leffler.

“There was a lot going on that day,” Leffler said. “At that very moment in time we didn’t have a chancellor here on campus to speak.”

Woodward reaffirmed that the administration would continue to seek out the opinions of staff, faculty and students as the budget process goes on.

“We have committed to the faculty and the students that there will be opportunities to talk about the budget and how we propose what the alternatives are for budget cuts,” he said.

The Office of the Provost announced this week there will be an open budget forum July 9 in Stewart Theatre.