What budget cuts will UNC make in response to the reduction in state appropriations?
While it’s too early to tell what UNC’s state appropriation will be, the reduction for the current year (2008-09) is expected to be covered with contingency funds and savings in energy costs. Because enrollment did not decline as much as anticipated, a moderate amount of contingency funds are available. Also, the university realized a one-time savings in energy costs because natural gas prices were not as high as expected. The 2009-10 budget will require additional strategies, including the implementation of a hybrid tuition and financial aid model, setting differential tuition and fees , and working to increase the number of external grants. Ongoing work to reduce costs and operate efficiently is already in place and has prepared UNC for a time like this. Budget decisions will be directly tied to the commitment to invest in priorities and move will forward with respect to the academic plan.
