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Budget Reductions Begin at UNCG

Posted on Wednesday, March 25th, 2009 under Budget News

I have committed to keep you informed of the budget situation. The divisions have continued to work on ways to minimize the impact of budget cuts on the core mission of the University. This letter is to bring you up-to-date on UNCG’s budget situation. UNCG’s divisions continue to plan for budget cuts as high as 7%. The impact of a cut at this level is devastating, and therefore we remain hopeful that President Bowles will be successful in convincing Governor Perdue and the General Assembly to limit our cut to no more than 5%. However, as we continue to analyze the Governor’s proposed budget and in light of the lack of State revenues, UNCG cannot delay the tough decisions that must be made for the coming year.

Given how large a proportion of the UNCG budget (and the budget of all universities) is accounted for by salaries and benefits, these tough decisions must include personnel actions. We have found it necessary to start a Reduction-In-Force (RIF) process to permit us to manage the significant budget cuts we face as of July 1. This is necessary because we need to pay terminated employees the benefits they have rightfully accrued during their UNCG careers. Given the extent of the potential budget cuts we won’t have the necessary resources – to pay out accrued benefits – available fiscal year 2009 – 10. With these considerations in mind, I have asked the Provost and Vice Chancellors to take the personnel actions required to permit the five divisions to implement their RIF plans. These personnel actions will affect SPA and non-faculty EPA positions. Our benefits department will inform the affected personnel about the benefits they are entitled to as RIFed employees. You will learn more about the RIF from your divisional leadership.

As I have previously stated, we won’t know the size of the budget cuts, and the mix of one time and permanent dollars required, until the General Assembly completes its work, the Governor signs a budget, and the UNC Board of Governors provides guidance for the campuses. However, we do know the cuts will be larger than anything we’ve previously experienced.

This is painful news to share, for UNCG is a close-knit community. It is difficult to watch colleagues, who are also friends, leave the university. I ask for your continued support as I make these very difficult decisions. I continue to encourage you to suggest cost savings ideas via the PACE website.

Sincerely,

Linda P. Brady
Chancellor

Posted in Budget News.