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Severe Budget Cuts Looming for Next Year (2011-12)

Posted on Thursday, October 7th, 2010 under Budget News

The State of North Carolina is anticipating a deficit of approximately $3.2 billion for the first year of the next biennial budget that begins in July 2011. The evaporation of the Federal Stimulus dollars accounts for half of the deficit, and the expiration of tax increases accounts for 40% and a weaker economy 10%. The anticipated deficit would be a shortfall in excess of 15%.

At this point, State Agencies have been directed to prepare budget cut scenarios at 5%, 10% and 15% levels of reductions. The UNC System is required to submit budget cut scenarios at the 5% and 10% levels. UNCG’s cuts at the 5% level would be $8.6 million and at the 10% level would be $17.2 million. The cuts have been allocated to all divisions of the University, where difficult choices will have to be made.

After several years of budget cuts focused primarily on administrative and support functions in all divisions including Academic Affairs, these additional cuts will go deeper into the academic core. In the process of identifying where to take the cuts, we will: conduct a review of programs to identify those that are not essential to our mission or have low demand for potential curtailment or elimination; reduce services with marginal benefit over cost; consider restructuring efforts; and create efficiencies where possible. Although it is not an option for the current scenarios, we will also look at the possibility of raising tuition to help offset some of the cuts, as we move through the many stages of the state budget process for next year.

We are facing one of the toughest situations in the life of our University that will test us all in the next few years. We do have a strong University community and we will work together to make the hard decisions that will allow us to deal with adversity without compromising the mission and character of the University as we move forward into a brighter future.

Sincerely,
Linda P. Brady

Posted in Budget News.