FAQ

  1. 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
  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.
  7. 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.
  8. How will NC State assist those whose jobs are eliminated?
    The university offers a comprehensive package of benefits when 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
  9. 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.
  10. 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.
  11. How much will tuition increase?
    Tuition at NC State could increase $200 because of a mandate from the General Assembly. All universities in the UNC system may be required to increase tuition by $200 or 8 percent, whichever is lower.
  12. What will NC State do to help students affected by cuts in academic programs?
    Our goal is to protect teaching and classroom activities to the greatest extent possible. Should an academic degree program be eliminated, it would be phased out over a period of several years. We will work with students affected by program elimination to help them finish their degrees or get the credits they need to graduate.
  13. Will there be more applications for enrollment?
    Freshman applications are at their highest level ever – more than 18,500 – for fall 2009. Transfer applications are 10 percent higher than last year.
  14. Will enrollment be capped?
    At this time, NC State does not plan to lower its targets for freshman or transfer enrollment.
  15. What effect will a bad budget have on graduation rates and students’ ability to complete their degrees in four years?
    NC State will do everything in its power to protect teaching and classroom activities by providing the class sections and instructors needed for students to make normal progress toward graduation. It is possible that budget cuts will hamper this effort.
  16. What is the current average class size?
    35.
  17. What is the current student-faculty ratio?
    16:1.
  18. What is the university’s operating budget?
    The initial estimated operating budget for the 2009 fiscal year was $1.14 billion.
  19. How is the university funded?
    The university’s funding comes from a variety of sources, and breaks down as follows:46 percent from state appropriations18 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

  20. 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.
  21. 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.
  22. What’s the total budget for endowed scholarships?
    Our endowments budget is about $12 million, or less than two percent of the university’s budget.
  23. 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.
  24. Will students be able to get financial aid at NC State?
    Our goal is to ensure that no student who can benefit from an NC State education be denied that opportunity due to finances. That remains our goal, especially in a bad economy. There are still many variables to be sorted out, but we believe we will be able to accommodate the increased demand for aid. The aid packages may include a higher level of loans than is typical of an NC State financial aid package.
  25. If the amount of available aid is limited, can I afford to go to NC State?
    We believe that some level of aid will be available for all qualified students. In addition, several publications (US News, Kiplinger’s, Princeton Review) have ranked NC State as a national “best value” in higher education, a ranking that combines academic quality and affordability. Affordability and quality are particularly important in difficult budgetary times and we will take steps to maintain that difficult balance. It will still be possible to get a quality education at NC State at a comparatively affordable cost.