For Faculty and Staff
NC State has engaged a collaborative campuswide process for meeting permanent budget reductions. In planning and carrying out budget reduction plans, the university:
- Will adhere to our budget principles
- Will not alter our mission
- Will be as transparent as possible
- Will protect teaching, research and outreach activities to the extent possible
- Will not terminate tenured faculty
- What is the current budget situation? NC State has submitted a proposed budget with a $53 million or 10 percent reduction in state funding, to the University of North Carolina General Administration for review
- Why are we planning for a 10 percent cut?That amount allows for an expected 6 to 7 percent cut in state funding and protects NC State from a budget reversion in case the state is forced to take back funding, as it did last year.While the overall budget reflects a 10 percent reduction in state funding, colleges took smaller cuts, ranging from 3.36 percent for Humanities and Social Sciences to 8.55 percent for Textiles.
- How many positions will be eliminated?Under the proposed budget, 440 positions will be lost, 176 of which are currently filled. The positions include 117 EPA faculty, 117 EPA professional and 206 SPA jobs.Many of the jobs eliminated are vacant faculty, non-tenure-track faculty and instructional support positions.
- How many class sections and seats will be lost?NC State will lose 300 class sections with 9,750 seats. General education classes were protected to a large extent, but students will see larger class sizes and possible graduation delays.Study abroad, leadership, service learning and research opportunities will also be reduced because of cuts in staffing and academic support programs.
- What are possible long-term impacts of the budget cuts? In his memo submitting the proposed budget, Chancellor Jim Woodward expressed concern about slower enrollment growth and “erosion in core faculty expertise.” Grant and contract funding for research and extension programs that benefit North Carolinians also will suffer, he said.In addition, funding reductions for Agricultural Research and Cooperative Extension Service programs will adversely impact research supporting the state’s $70 billion agricultural sector and science-based education programs delivered in partnership with the state’s 100 counties and the Cherokee Tribal Council.
- When will we know how much NC State’s budget will be reduced? The budget proposal, which was submitted July 22 after more than eight months of effort, will be reviewed at the UNC system level. Once the state budget is finalized, the UNC Board of Governors will consider approval of NC State’s budget.
- Some of these cuts won’t produce savings right away. What is our goal? Our goal is to realize additional savings by June 30, 2011, during the biennial budget cycle. Because the phasing out of programs may take additional time, both short- and long-term savings will be considered.
- How will NC State assist those whose jobs are eliminated?The university offers a comprehensive package of benefits when SPA jobs are eliminated because of a reduction in force (RIF):
- Severance pay based on years of service and age
- Re-employment priority for 12 months to state positions in agencies and universities
- Health insurance continuation for 12 months (if currently covered)
- Counseling services through the university’s employee assistance program
- Assistance with job searches, resumes, applications and practice interviews
- Meetings with a benefits consultant to discuss individual benefits and retirement options
- Classes on resume development, interviewing, effective networking and Web-based job searches
EPA employees are not covered by RIF policies but may also take advantage of counseling services, job search assistance, benefits consultation, and classes.
- What does the severance package for SPA employees include?SPA employees will receive a severance payment that is calculated on their years of service plus age over 39. Depending on how much personal and bonus time they have taken, SPA employees are eligible to receive up to six weeks of annual leave and five weeks of bonus leave, plus unused comp time. SPA employees can receive one year of health insurance and those who have worked for the state for at least the previous 24 months receive priority for re-employment.
- What does the severance package for EPA employees include?With one year of service, EPA employees receive 30 days notice. They receive 60 days in years two and three and 90 days for more than four years of service. EPA employees are eligible to receive up to six weeks of unused annual leave and five weeks of bonus leave.
- What is the university’s operating budget?The initial estimated operating budget for the 2009 fiscal year was $1.14 billion.
- How is the university funded?The university’s funding comes from a variety of sources, and breaks down as follows:46 percent from state appropriations
18 percent from contracts and grants
15 percent from tuition and fees
15 percent from auxiliaries
4 percent from gifts and other sources
2 percent from federal appropriations
- How have economic issues affected endowed scholarships?A group of 180 endowments across the country, the BNY Mellon Endowment and Foundation Universe Median, reported a loss of 26.7 percent for the nine-month period that ended March 31. NC State’s endowment investments are down 25.8 percent for the same period. The reality is it could get worse. Endowments fund scholarships, fellowships, other program initiatives and professorships.
- What happens to students who have been going to NC State on endowed scholarships?We are seeking ways to honor our commitment to students on continuing scholarships, despite the decline in our endowment investments brought on by weakness in the economy. The chancellor provided $780,000 to ensure continuing scholarship commitments to students would be met. In addition, many donors who established scholarship endowments have generously made new gifts to ensure our students would have scholarships next year.
- How has the economy affected endowed professorships?It is likely that endowed professorships will be underfunded. We are seeking ways to make up the shortfall.