The Senate’s budget proposal for the UNC System increases the overall appropriations authorized in 2009’s biennium budget by about $10 million, opposed to the Governor’s requested increase of $42 million.
The major discrepancy between the Governor’s budget proposal and the Senate’s budget plan can be found in the Management Flexibility Reduction item. The Senate’s budget nearly halves Governor Purdue’s proposed $98.9 million flexibility reduction with their recommended $50 million reduction.
The UNC budget is aided by $144 million in federal “Education Stabilization” funds slated to be received via the federal stimulus bill. The federal funds were itemized in the state budget as a “cut” in last year’s biennial budget bill because state spending would decrease, only to be replaced with the federal funds.
Major expansions and reductions include:
- Tuition Repeal: $34.7million. Repeals the tuition rate increase for FY 2010-11 that was enacted during the 2009 legislative session, meaning that the state would need to make up the difference of the lost tuition revenue to universities.
- Need-Based Financial Aid: $8.2 million. Expansion of Need-Based Financial Aid will be used primarily to fund an additional 4,600 students that qualify for aid.
- ECU Dental School: $6 million. Assists ECU in seeking accreditation and meeting faculty and operating needs. An additional $5 million is promised to ECU by the General Assembly in the next two years.
- Enrollment Growth: $5.6 million. Funds the projected growth of UNC system students due to an estimated increase of 441 full-time equivalent students. This is in addition to the $53.4 million already appropriated for previously estimated enrollment growth.
- Distinguished Professor Endowment Fund: $4 million. Increases the $8 million budget to reduce the backlog of 66 professorships awaiting state funds.
- Management Flexibility Reduction: $50 million. Expands the $100 million management flexibility reduction already embedded in this year’s budget courtesy of last year’s two-year budget plan. A priority is placed on non-teaching related budget cuts.
- Aid to UNC Hospitals Reduced: $2 million. Reduces the per annum appropriations to UNC Hospitals by 4.5%
- Legislative Tuition Grant: $1.5 million. Reduces the appropriation for LTG grants to $55 million.