UNC Budget Outlook

UNC Budget Outlook

November 7, 2008November 7, 2008The University of North Carolina

UNC Faculty CouncilUNC Faculty Council

The University of North Carolina2

UNC Summary – Revenues2006-07

Auxiliaries13%

Federal Appropriations,

Contracts & Grants11%

Tuition & Fees

12%

State Appropriations,


HospitalsSales & Services

10%

Investment Income, Endowments

& Gifts9%

Other Revenues

2%

Capital Appropriations, Grants & Gifts

10%

Local Grants & Contracts

2%

Source: IPEDS Data

Total = $8.2 billion


UNC-CH Summary – Revenues2006-07

Auxiliaries20%

Federal Appropriations,


Tuition & Fees

8%

State Appropriations,


Investment Income, Endowments

& Gifts18%

Other Revenues

1%

Capital Appropriations, Grants & Gifts

8%

Local Grants & Contracts

4%

Source: IPEDS Data

Total = $2.5 billion


All Other 33%

UNC-CH22%

NCSU20%

ECU11%

UNCC7%

UNCG7%

* Excludes capital improvements

UNC-CH = 22% of UNC System State Appropriations

UNC System = $2.6 billion*2008-09


Education$11.453.8%

Justice & Public Safety

$2.09.4%

Health & Human Services

$4.923.1%

Other$1.25.5%

Reserves$1.15.2%

Debt Service

$0.63.0%

* Excludes capital improvements

UNC = 12% of overall state budget and 23% of Education budget

NC State Budget - $21.2 billion*2008-09


UNC as a % of State Budget

2008-09

2003-04

1998-99

1993-94

1988-89

12.0%

12.2%

13.2%

14.2%

16.5%


Education Budget Breakdown2008-09

DPI: $7.8 billion UNC: $2.6 billion NCCCS: $.9 billion Private Colleges: $.1 billion


Fiscal Year 2008-09 2008-09 revenue projections are based on

3.9% growth Each 1% of growth = $200 million Currently, revenues are approximately

$300 million behind projections. This is a significant deficit for the 1st quarter.

Governor has issued 4% reversions Other Factors:

State Health Plan has at least a $300 million deficit for 2008-09


2009-11 Budget North Carolina is a fast growing state

North Carolina will be the 7th largest state by 2030

Pressures on state budget Economy, declining revenues State Health Plan deficit – $600 to $700

million over biennium Medicaid – $50 million K-12 requirements

Enrollment – $100 million ABC Bonuses – $100 million

State Employee Salary Increases – each 1% is $130 million

New Governor, Legislators, & Treasurer


UNC State Budget “A single, unified recommended budget for all of

public senior higher education.” G.S. 116-11 Statute prescribes form of budget requests – three

categories:1. Continuing Operations (enrollment, utilities, vehicle

replacement) – allocated to institutions2. Academic Salary Increases – lump sum to Board of

Governors and then allocated to campuses3. Expansions/Improvements Items – lump sum to Board

of Governors and then allocated to campuses New and expanded programs Capital improvements


UNC State Budget Legal Basis

State Executive Budget Act – G.S.143C Higher Education Reorganization Act of 1971 – G.S. 116

Board of Governors’ Role: Presents comprehensive financial plans to General

Assembly Modifies plans based on resources made available by

Legislature Establishes annual budgets which are administered by

the constituent institutions Advocacy


2009-11 Budget - Continuation Campuses work with Office of State Budget

& Management (OSBM): Building Reserves for new State-funded

Facilities opening during the biennium Replacement Vehicles & Equipment Inflationary Increases (library books, utilities) Required Staff Benefits & Continuing Personnel

Campuses and GA work together, then submit to OSBM: Enrollment


Expansion Budget Process

Budget PreparationCampus Submissions (Sept)UNC-GA Review (Sept-Oct)24 Chancellors’ & Affiliates

one-on-one discussions (Sept-Oct)

BOG Workshops (Oct-Nov)Final Recommendations (Nov)


2009-11 Expansion Budget – Operating

Campus Safety Our Citizens & Their Future:

Access to Higher Education UNC Need-Based Grant Regional Partnerships Student-focused Programs:

Community College/transfer Under-represented populations Retention and graduation



Increase Efforts to Recruit & Retain High Quality Faculty 80th Percentile Across the Board Merit Increases Distinguished Professors Recruitment & Retention Fund



Our Global Readiness Graduates with 21st Century Skills

Critical and creative thinking Analysis Problem-solving Verbal and written communication

Our Health Dental Program Medical Programs



Our University’s Outreach & Engagement Regional Issues

Our Communities & Their Economic Transformation NC Research Campus at Kannapolis NC Research Competitiveness Fund Graduate Student Recruitment &

Retention



Our Children & Their Future: Improving Public Education Programs focused on producing

math & science teachers Our Environment

Campus sustainability programs Research related to sustainability

Efficient Use of Available Resources Fiscal Integrity

Affiliated Entities


Fire Safety Improvements Funding for projects which have

been approved for planning Planning funds for other

important priorities Repair and Renovation funds Land

2009-11 Budget – Capital


Results of Working Together2006 Session (2006-07 Budget)

UNC began the session with $2.1 billion and ended legislative session with a budget of $2.3 billion

$140 million in capital support2007 Session (2007-08 Budget)

UNC started continuation budget process at $2.4 billion; ended legislative session with budgetof $2.7 billion – $300 million increase

$1 billion in capital support2008 Session (2008-09 Budget)

UNC received $159 million in increased appropriations$623 million in capital support


2009 NC Legislative Process“Long Session”

Governor’s Budget Proposal – January 2009General fund availability is determinedTwo budgets may be submitted

General Assembly convenes – January 28, 2009Senate Budget – MayHouse Budget – JuneConference Process Results in Final Budget –

June/July

Documents

UNC Budget Outlook