University officials are generally satisfied with the final state budget passed by the legislature late last week.

Although NC State will face a 2.9 percent budget cut for the 2002-03 fiscal year that equates to $10.2 million, the damage could have been much worse.

"Overall we're very pleased with the outcome, given the economic problems facing the state and the loss of tax revenues," said George Worsley, vice chancellor for finance and business. "While we continue to have concerns, particularly in the short-run, it's a far better situation than when we first began discussions on the budget."

Most pleasing was the fact that legislature maintained full funding for enrollment growth.

"On a positive note, the legislature has provided us more than $22 million for enrollment growth," Worsley said, "and additional tuition-based funding will provide us almost another $8 million for our academic programs."

Worsley said shielding the classroom from deep cuts was a core goal during the budget process.

"The cuts reflect a philosophy endorsed by the chancellor and administration that classrooms must be protected," Worsley said. "So the percentage of these cuts will be much greater for administrative units than for academic ones."

The total budget reduction could grow to 3.4 percent, or $11.7 million, if a Governor's Efficiency Commission recommendation is adopted that would require a statewide reduction of $25 million, most of that from curtaining utility use. Worsley said he doesn't know how such a recommendation could be implemented.

"Because the state budget is balanced by a negative efficiency reserve, the university system will participate in the cuts," he said. "…NC State has spent considerable time in minimizing utility costs, and with the growth of the university population, I'm not sure there's any savings to be found in there. I believe this will be a real challenge."

Another challenge will be maintaining older buildings on campus, as the legislature failed to provide any money for repairs and renovations.

"This is the second year that there have been no appropriations for repairs, which is typically $10 to $12 million to repair aging roofs, plumbing and so on," Worsley said. "While the taxpayers have provided us with our wonderful bond issue for new building projects, we desperately need to convince the General Assembly to restore appropriations for repairs and renovations. It's too late to do that this year, so next year will be absolutely critical."

For individual employees, the legislature provided no salary increase, but attempted to take some of the edge off that decision by providing a one-time bonus of 10 days of annual leave.

Worsley, like many employees interviewed in a Bulletin Online story last month, said the extra leave was great … if they can find time to use it.

"Most will find the extra leave an added opportunity, particularly those with daycare and childcare responsibilities," he said. "On the other hand, the same workload remains, so there's not as much flexibility for each staff member. So it's nice to have the leave in reserve, but with everyone's workload increasing, it will be a challenge to take advantage of the extra leave."

Posted September 26, 2002

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