1. What is NC State’s budget?
    1. About $1.2 billion in 2010-11.
  2. How much has the state-appropriated portion of the budget been cut?
    1. State appropriations are by far the largest part of the university’s budget, about 40 percent.  For the fiscal year that began July 1, our state budget has been reduced by $79.2 million, or about 15 percent.
  3. Why was NC State required to take a higher percentage cut than other universities?
    1. The Board of Governor’s was prohibited from allocating the reduction across-the-board.
  4. Will the 15 percent cut be administered “across the board?”
    1. No.  In fact, if there is any positive news in this budget reduction, it’s that the combined efforts of our organizational realignment, strategic planning and ongoing budget planning have positioned us to offset a significant portion of the reduction.
  5. How are we able to take the 15 percent reduction without raising tuition?
    1. Our strategic planning, organizational realignment and budget planning have positioned us to keep moving forward in a resource-constrained environment.  These planning processes have given us the method and means to offset some of the 15 percent reduction.  Tuition has been set for next year and includes a 6.5 percent increase.  But, there will be no further tuition increases for this academic year.
  6. How does the university determine where to make budget reductions?
    1. In order to protect the academic core to the extent possible, reductions have typically been allocated disproportionately to administrative units, with special consideration given to the library and the utilities budgets.  Our mission guides our budget process.
  7. How is NC State funded?
    1. The largest funding source is state appropriated funds, about 40 percent, with the other major funding sources being Tuition and Fees, Grants and Contracts, Auxiliary Services and trust operations, Federal Land Grant appropriations, and gift/foundation funds.
  8. How many jobs will be lost?
    1. About 600 positions will be eliminated.  However, because of a hiring freeze in effect for most of 2010-11, many of these positions are vacant.  It is difficult, at this time, to determine how many filled positions will be terminated.
  9. How will budget cuts affect graduation rates and the time required for students to complete their degrees?
    1. The primary objective was to protect our academic core to the extent possible.  However, a reduction of this magnitude on top of repeated reductions over the last few years may result in reduced class availability.

For Employees

  1. When and how will employees be notified regarding jobs lost?
    1. There is a well-defined notification process for reduction in force actions of state employees who must receive a formal 30-day notice for termination.  Employees exempt from the state personnel system will receive a written notification.
  2. Will severance packages be offered?
    1. For classified state employees there is a severance package which takes into consideration the employee’s age and years of service to the state.  For employees exempt from the state personnel system, a 30- to 90- day notice of termination is required.
  3. Will NC State provide any outplacement services for employees who lose their jobs?
    1. Resources are not available to provide this type of service but the Division of Human Resources does provide guidance to employees in applying for available state positions.
  4. Will faculty teaching loads increase?
    1. With a budget cut of this magnitude, it is unavoidable.
  5. How will support for research be affected?
    1. In some cases, colleges will eliminate administrative support and laboratory technical and managerial staff, which will clearly hinder faculty research efforts; at the agricultural research stations and field laboratories, the loss of these types of staff positions will result in research faculty spending more time in labor intensive tasks preparing fields, crops, or animals for research efforts that will impact their time in conducting the actual research and/or preparing research reports or new grant/contract proposals.
  6. Has the university’s strategic realignment helped lessen the impact of the cuts?
    1. The organizational realignment is more about efficiency and effectiveness than reducing the budget.  However, consolidation and elimination of administrative functions have produced cost savings.
  7. How will the budget cuts affect the ongoing business services consolidation?
    1. The business services consolidation is already underway and on schedule.  It is likely that this budget reduction will encourage a more rapid implementation strategy as shared service centers are implemented during 2011-12.

For Students

  1. Will tuition increase?
    1. For 2011-12, the tuition increase of 6.5 percent was approved earlier this year by the Board of Governors and no other tuition increase for this fiscal year is expected.  The tuition review process for 2012-13 will begin in September 2011.
  2. How will the budget affect seats and sessions?
    1. Although we have done all we can to protect the academic core to the extent possible, it is estimated that we will lose about 1,000 sections and 36,000 seats for the 2011-12 academic year.
  3. How will the budget affect financial aid?
    1. Reductions in the BOG’s student financial aid budget will have a negative impact on student financial aid resources available to NC State student.  It is not yet clear what the full impact will be but with less financial aid, the number of student loans likely will increase.
  4. How will student services be affected?
    1. Fewer staff will be available in the student support service offices, which will translate into longer wait times for students seeking support in Registration and Records, Cashier’s Office, Student Financial Aid, Counseling services, Career planning, advising services, and others.