Carolina Budget Information
Since the global economic crisis hit in the fall of 2008, Chancellor Holden Thorp has pledged to keep the campus community informed about the impact of state budget cuts.
UNC campuses including Carolina face a fourth consecutive year of state budget reductions in fiscal 2011-2012. Carolina's overall permanent cut in state appropriations for fiscal 2011-2012 totals 17.9 percent, or more than $100 million. That cut will be offset by an additional $20 million transfer of funds from the UNC Health Care System to help the University and its School of Medicine absorb the cuts. UNC Health Care annually transfers funds to the School of Medicine for mission, academic and clinical support.
State appropriations currently account for slightly less than a quarter of our total operating budget. From a practical standpoint, the University’s ability to take a larger cut helped soften the blow at smaller UNC institutions with fewer resources. The University also will realize the savings from the nearly 5 percent permanent cut we proactively took in the spring, which became effective July 1, 2011.
The budget passed by the General Assembly was, by necessity, austere, Chancellor Thorp has said. As a result, Carolina – like every campus in the UNC system – is faced with dramatic cuts that threaten the ability to educate the next generation of leaders. Across campus, more programs will be eliminated, students will see larger class sizes and fewer course sections, and there will be additional layoffs.
Protecting classroom experience top priority
Since the downturn began, our top priority has been to protect the classroom experience of Carolina students as much as possible. Administrative departments have absorbed more cuts than academic units by design.
We are bracing for what will be, by far, the most difficult budget year since the downturn began. This year’s permanent reductions will damage our teaching mission because state appropriations primarily support undergraduate education. And we'll see further cuts to administrative units that provide vital support to our mission.
Chancellor Thorp recognizes that our state’s universities are the key to North Carolina’s future economic growth and job creation, and he has pledged to do everything possible to keep Carolina strong.
CHANCELLOR THORP'S BUDGET MESSAGES
Chancellor Thorp regularly communicates via e-mail with the campus community about the latest developments with the University’s budget.
ANNOUNCEMENTS AND OTHER INFORMATION
BUDGET NEWS
UNC SYSTEM BUDGET ANNOUNCEMENTS
UNC-Chapel Hill works closely with the UNC President and General Administration on budget issues facing the North Carolina General Assembly. The University’s budget is part of the overall finances for the 17-campus UNC system.
- UNC President Statements
- News from General Administration
- Other UNC Campus Budget websites
- Other UNC Campus Budget News
HOW OTHER CAMPUSES COPE WITH BUDGET CUTS
Throughout the economic crisis, Carolina has been in better shape than many of its public and private university peers across the nation. Fiscal year 2011-12 is expected to be the most challenging year yet for higher education.
BAIN & Co. Study
Carolina Counts
Carolina Counts is the University-wide initiative to improve the efficiency of campus operations and reduce administrative costs, based on the key recommendations from the 2009 Bain & Company study.
It plays a key role in the University's budget strategy by serving as a roadmap for wisely implementing necessary budget reductions.
In 2010, Carolina Counts began focusing on 10 areas identified by Bain for major improvements. The first year focused on three central units: information technology, finance and human resources. The second year focused on the unit level - the professional schools and the College of Arts and Sciences, as well as seven central units. As of January 2012, the University had completed more than 93 of the 154 projects identified. Savings indentified and implemented from permanent state dollars total about $50 million.