FROM THE HILL
Enrollment Cut Included in Latest Budget Scenarios
Lfurloughs, and cuts in student enrollment may be
necessary if the state reduces the University’s
oss of faculty and staff, fewer classes, employee
budget by 3, 5 or 7 percent.
New details of budget cut scenarios were included
in a report distributed in early February that came
from UNC’s Office of Legal Counsel. It was released at
the request of the Employee Forum in response to
rumors and questions about layoffs.
The impacts of budget reductions would be felt
across the University, with the most dramatic impacts at
5 and 7 percent.
According to the University, a budget reduction at
5 percent would mean the loss of 121 faculty positions
and 86 staff positions. The University also would consider a five-day furlough of employees in some areas to
avoid additional layoffs.
Class offerings would be reduced. At a 5 percent
reduction, the University estimates that 282 classes
would not be offered and that 436 sections would be
lost, making it harder for some students to meet graduation requirements.
The University also reported that a 5 percent cut
would mean staff reductions and affect distance education offerings, technology and acquisitions for UNC’s
libraries and funding for outreach programs.
A 7 percent reduction of the University’s budget
could result in the loss of more than 230 faculty positions and an additional elimination of 66 staff positions.
“A loss of over 230 faculty and teaching positions
would warrant an enrollment reduction of over 3,400
students (approximately, the equivalent of an incoming
freshman class),” the report said. It did not detail how
such a cut would be made.
The loss of teaching staff also could affect the University’s accreditation, especially in professional programs.
In a campuswide memo in mid-February, Chancellor Holden Thorp ’ 86 wrote, “It would be easy for us
to fall into the trap of hunkering down, making cuts
across the board and just trying to survive. But the
great institutions — the ones that will emerge from
this economic crisis even stronger — will be those that
are willing to look hard at what they do and then
make really smart decisions. I intend for Carolina to be
one of those great institutions.”
UNC has hired Bain & Co., a global business consulting firm, to conduct a study to help “identify innovative ways to streamline operations, become more
effective, and perhaps achieve additional cost savings.”
The study, to be conducted this spring, will be paid
for by the UNC-Chapel Hill Foundation through a
restricted gift from a Carolina alumnus.
On Feb. 20, Thorp told the Faculty Council that
UNC was setting up an Employee Assistance Fund to
help those who might be laid off. The $445,000 fund
came from a $250,000 estate gift designated for a high-priority need; a $100,000 donation from the athletics
department; $70,000 saved in the cancellation of the
annual Tar Heel Bus Tour, a weeklong state tour for
selected new faculty and staff; and a $25,000 gift from
Thorp and his wife, Patti.
Gov. Beverly Perdue might not make budget reduction decisions until after April 15, when the state’s tax
revenue for the year is known.
The UNC System Board of Governors in mid-Feb-
‘It would be
easy for us to fall
into the trap
of hunkering
down, making
cuts across the
board and just
trying to survive.
But the great
institutions ...
will be those
that are willing
to look hard
at what they do
and then make
really smart
decisions.
I intend
for Carolina
to be one
of those great
institutions.’
Chancellor
Holden Thorp ’ 86
Budget continued on page 5
THE CHARLOTTE OBSERVER
A Seasoned Veteran
Gives Back to UNC
As he’s piled up four trips to the Pro Bowl in
his seven seasons as a Carolina Panther,
Julius Peppers ’02 has been thinking about
how he could give back to the University. The
beneficiary is the Light on the Hill Society, a
part of the GAA’s Black Alumni Reunion that
uses private gifts to support black freshmen
who exhibit academic excellence and the
potential to contribute while at Carolina and
after graduation. As it turns out, Peppers has
been quietly supporting enrichment programs
for young people for some time. Read about
his $100,000 gift on page 50.
