N.C. House’s 2010-11 Budget Recommendations: UNC System

The 2010 House Budget
Introduction
General Government
Public Education
UNC System
Community Colleges
Justice and Public Safety
Health and Human Services
Transportation
Natural and Economic Resources

The North Carolina House of Representatives budget plan would reduce the funding for the UNC System by $98 million for FY 2010-11. The House’s proposal differs greatly from both the Governor’s recommendations and the Senate’s budget, who both recommended moderate budget increases for the coming fiscal year.

In spite of the overall spending reduction, however, the House recommends adding 243 new full-time positions to the state payroll. Most of these positions would be for maintenance and security staff for additional buildings being put to use.

Major reductions and expansions include:

Expansions:

• Tuition Repeal: $34.78 million. Repeals the legislative tuition rate increase approved during the 2009 legislative session and increases state appropriations to make up the difference
• Need-Based Financial Aid: $12 million. This increase in financial aid would restore non-recurring aid appropriated the previous year as recurring funds going forward.
• Building Reserves Restored: $12.2 million. This proposal would restore funding cut in the 2009 Session. This funding would support the maintenance and operations of 55 new or renovated buildings completed within FY 2009-11. The money would go toward the creation of 184 maintenance, housekeeping and security positions.
• ECU Dental Schools Operations: $6 million. Funds the ECU Dental School as it seeks accreditation, and to meet faculty and operating needs before it opens in the Fall of 2011.
• Enrollment Growth: $ 5.6 million. Increases funding for UNC enrollment growth due to an increase of 441 full-time equivalent enrollees over previous estimates.
• Aid to Private College Students: $4.6 million. Expands funding for the Legislative Tuition Grant and the State Contractual Scholarship Fund for enrollment growth of 2.9% in FY 2010-11.

Reductions:

• Management Flexibility Reduction: $147 million. This proposal would impose a mandatory reduction on the UNC operating budget with an emphasis on non-teaching related positions. This reduction would take effect on top of a $100 million management flexibility reduction authorized in the base budget for FY 2010-11.
• Repeal of Non-resident Full Scholarship Tuition Waiver: $15.5 million. The House proposes to halt reimbursements to the UNC system for losses of revenue incurred by affording non-resident students on full-scholarship in-state tuition.
• UNC Advertising: $2.5 million. The proposal would impose a 24% reduction in the UNC advertising budget.
• Aid to UNC Hospitals Reduced: $15 million. This would be a reduction of the $44 million per annum appropriations to UNC hospitals, a reduction that could be made up for with part of the UNC Hospital’s $500 million in unrestricted reserves.
• HMCUC Funds Transfer: $525,000. Eliminates the Historically Minority Colleges and Universities Consortium Closing the Achievement Gap project and transfers funding for that project to the Department of Public Instruction.