Editor’s note: This is an updated version of the story. Please refer to our Corrections page for a breakdown of the specific changes.
N.C . State received a 15.1 percent budget cut from the UNC System Board of Governors July 7, one of several universities dealt double digit reductions.
Although course section availability will dwindle, Chancellor Randy Woodson said there are currently no plans to eliminate majors. Woodson also said there will not be a tuition increase beyond the one approved last Nov.
According to Woodson, it will be the professors and faculty who will carry the burden of fewer funds.
“It may be more difficult for us to offer sufficient class sections of various courses because of limits on the faculty and staff that we have,” Woodson said.
Instead of cutting each college under the University by 15.1 percent, administrators have decided to cut seven percent from academics and 10 percent from administration. This is consistent with the Chancellor’s goal of “protecting the academic core” outlined by his realignment plan.
“Over the course of the last two years, we have been working hard to prepare this University for a significant budget reduction,” Woodson said.
Each college—across the board—will receive the order to cut 7 percent. Individual deans will choose what to keep and what to get rid of.
Schools in the UNC System were not given identical cuts, ranging from 8.4 percent at the School of Science and Math to 17.9 percent at UNC Chapel Hill as the Board of Governors wrangled with a $2.65 billion reduction given to them by the General Assembly.
One of the main factors the Board of Governors considered in deciding how to allocate cuts across the system was school size and population. Larger schools received larger budget reductions, and vice versa. East Carolina University, Appalachian State University and UNC-Charlotte were also at the top of the list.
Public universities have revenue sources beyond what taxpayers provide. UNC-CH received a transfer of $20 million from UNC Health Care last week in order to offset budget reductions.
“UNC Health Care had a good year, and we are glad to be able to give back to the system,” UNC Health Care News Director Jennifer James said.
However, the health care facility did not give back to the “UNC System”—it gave back to UNC-CH . UNC Health Care falls under the same umbrella as all North Carolina public universities. Their boss, Tom Ross, is president of the UNC System.
According to UNC-CH’s website, the entirety of the $20 million will stay on UNC-CH’s campus to “help the University and its School of Medicine absorb the cuts.”
The transfer was discussed before the budget cut announcement was made, James said.
N.C . State has raised private funds in the past. Last year, the University received $40 million from local entrepreneur Lonnie Poole.
“The largest gift to any university in the Triangle was realized in December with the $40 million gift from Lonnie Poole,” Woodson said, “so I would say we have significant capacity [to raise private funds].”
However, those funds cannot be used to educate.
“[Cuts to large universities] had more to do with the fact that—in the view of others, not in my view—we have other revenue sources,” Woodson said. “The problem I have with that is those other revenue sources aren’t used to educate the students. They are for research, sponsor grants, et cetera.”
Union County representative Craig Horn said he agreed with the chancellor.
“When it comes to education, the dollars need to be placed in the classroom first,” Horn said.
Every cut the University has been dealt over the past three years is permanent. Therefore, if the University were to not cut 15.1 percent of its spending this year, it would be digging a hole for next year, the year after, and so on. Woodson said he understood this fact.
“To keep N.C . State strong, and to keep the educational environment strong for our students, we have to assume this is permanent—because it is,” Woodson said. “When the legislature cuts your budget, they don’t say they are going to give it back to you next year.”
Former educator and Democratic representative Charles Graham said he thinks the education system in N.C . is, and has been, flexible.
“Our universities have a proven track record of adjusting along the way,” Graham said. “The system has always been able to adjust and move forward and to continue to do good work.”
Due to the ongoing economic shortfall that has plagued North Carolina and the country at-large for more than three years, tax revenues are down. The republican-led general assembly cut taxes and cut spending in this year’s overall budget.
“North Carolina having to tighten our belt is not unique to this state,” Jordan Shaw, spokesman for House Speaker Thom Tillis said. “You will see leaders, educators, students and administrators doing more with slightly less, being more efficient, and doing what families have had to for the past three years—and this is doing more with less.”
”We have done, as a campus—because we planned for it—a wonderful and outstanding job of preparing ourselves; and as a result, each of the colleges where the students receive their education will have the lowest cut in the University,” Woodson said.