UNC Financial Update

CHAPEL HILL – UNC is almost certain to face steep cuts coming from the state after the budget is finalized. Though the general fund revenues through the first 3 quarters of this fiscal year were about $110 million, or 8 percent, above what was projected—Vice Chancellor for Finance and Administration Karol Kain Gray says there’s still cause for concern.

“And even though that indicates that the state is doing well, we are still concerned about what type of budget cuts we will receive for next fiscal year,” Gray said.

Gray gave an update of the UNC’s finances Wednesday during the Board of Trustee’s Budget Committee meeting.

She said it’s anticipated that potential budget cuts from the state will be about $15.3 million or a 2 percent decrease in funding from last year. Worst case scenario would be a five percent decrease, equaling $25.5 million.

The Senate’s budget proposes $48 million in reductions across the University of North Carolina campus system. NC Governor Pat McCrory’s budget proposal, released in March, calls for cuts totaling more than $140 million.

From the 2011 to 2013, state appropriations were down 14.3 percent due to budget cuts. State appropriations totaled $253,954 from 2012-2013.

The university’s expenses were up 3.2 percent from 2011 to 2013.

UNC also saw a 20 percent increase in revenue from tuition—but that’s because tuition went up to counter budget cuts.

Gray also highlighted that the university spent significantly less on academic support.

“That is the area that supports libraries and all of the academic administrative support,” Gray said. “That is an area where they have taken significant cuts over the last two years.”

Gray hopes to have more to report at the next BoT meeting in July, after the state finalizes its budget.

The Board will regroup for a full meeting Thursday at 8 a.m.

This will likely be the final BoT meeting for outgoing chancellor, Holden Thorp.

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