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

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

The Senate’s budget proposal for the UNC System increases the overall appropriations authorized in 2009’s biennium budget by about $10 million, opposed to the Governor’s requested increase of $42 million.

The major discrepancy between the Governor’s budget proposal and the Senate’s budget plan can be found in the Management Flexibility Reduction item. The Senate’s budget nearly halves Governor Purdue’s proposed $98.9 million flexibility reduction with their recommended $50 million reduction.

The UNC budget is aided by $144 million in federal “Education Stabilization” funds slated to be received via the federal stimulus bill. The federal funds were itemized in the state budget as a “cut” in last year’s biennial budget bill because state spending would decrease, only to be replaced with the federal funds.

Major expansions and reductions include:

Expansions:

• Tuition Repeal: $34.7million. Repeals the tuition rate increase for FY 2010-11 that was enacted during the 2009 legislative session, meaning that the state would need to make up the difference of the lost tuition revenue to universities.
• Need-Based Financial Aid: $8.2 million. Expansion of Need-Based Financial Aid will be used primarily to fund an additional 4,600 students that qualify for aid.
• ECU Dental School: $6 million. Assists ECU in seeking accreditation and meeting faculty and operating needs. An additional $5 million is promised to ECU by the General Assembly in the next two years.
• Enrollment Growth: $5.6 million. Funds the projected growth of UNC system students due to an estimated increase of 441 full-time equivalent students. This is in addition to the $53.4 million already appropriated for previously estimated enrollment growth.
• Distinguished Professor Endowment Fund: $4 million. Increases the $8 million budget to reduce the backlog of 66 professorships awaiting state funds.

Reductions:

• Management Flexibility Reduction: $50 million. Expands the $100 million management flexibility reduction already embedded in this year’s budget courtesy of last year’s two-year budget plan. A priority is placed on non-teaching related budget cuts.
• Aid to UNC Hospitals Reduced: $2 million. Reduces the per annum appropriations to UNC Hospitals by 4.5%
• Legislative Tuition Grant: $1.5 million. Reduces the appropriation for LTG grants to $55 million.