Gov. Perdue’s 2010-11 Budget Recommendations: UNC System

Governor Perdue’s FY 2010-2011 UNC System budget recommendations provides for a 1.6 percent (or $42.7 million) increase over the $2.7 billion authorized in last year’s biennial budget bill.

Major expansions and reductions include:

Expansions

• Career and College Promise: $35 million. Expands need-based financial aid program for lower-income students
• Enrollment Growth: $5.6 million. Fully funds an additional 441 more students in the UNC System, an increase above projections included in last year’s budget bill
•  Campus Initiated Tuition Increase: $34.7 million. Eliminates the 2009 tuition increases and replaces the lost receipts with General Fund appropriation. Instead, individual campuses would decide upon appropriate tuition increases (subject to UNC Board of Governor approval). The revenue from these tuition increases would be appropriated for need-based financial aid, (51%) initiatives to improve graduation and retention (25%) and other critical initiatives (24%) 
• Education Stabilization Fund: An additional $55 million will need to be appropriated to meet requirements established in the federal stimulus act

Reductions 

• Management Flexibility Reduction: $98.9 million.  Provides 3.9 percent average decrease to all UNC institutions. When assessing reductions campuses urged to eliminate middle management, vacant or redundant positions and low performing positions
•  NC Legislative Tuition Grant Reduction: $1.1 million.  Provides for 3.9 percent reduction in average size of Legislative Tuition Grant (from $1,850 to $1,778)