2008 Woodie Awards
UNCA loses $1 million in funding
By: Cassidy Culbertson
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Significant state-mandated spending cuts slashed nearly $1 million from UNC Asheville's budget this year
Chancellor Anne Ponder met with the Student Government Association on Oct. 1 to explain the budget changes.
"We are managing this with as much kindness and compassion as possible," Ponder said. "We are managing this responsibly during pretty turbulent times."
During the meeting, Ponder emphasized the university's commitment to maintaining a stable environment for faculty, staff and students.
Officials said they intend to protect employee benefits, student employment and financial aid potentially affected by the cuts.
Ponder mentioned previous budget cuts, like those during the 2001-2002 school year.
"We know how to deal with this. We're practiced in doing a lot with a little," she said.
Slashing the budget further would likely result in the largest budget cut the university has ever endured, according to Ponder.
Current Impact
The budget is $52 million. Of that, $42 million pays salaries and employee benefits, leaving just $9.7 million for non-personnel expenses.
The remaining budget supports the university's four divisions, Financial Aid and Campus Operations, Alumni and Development, Academic Affairs and Student Affairs.
The Athletics Department operates as a separate entity, and is not funded the same way as the four divisions, according to Merianne Epstein, UNCA director of public information.
"We are trying to do this so the impact on students would be very minimal," John Pierce, Vice Chancellor for Finance & Campus Operations said.
About $1.3 million of the remaining budget funds scholarships and financial aid, which Ponder said the university will maintain.
About $5.3 million dollars of the operating budget goes to every supply imaginable, from computers to vacuum cleaner bags.
Cutting $1.3 million of that isn't possible, Ponder said.
Academic affairs will operate on 90 percent of last year's budget, meaning each department must manage with 10 percent less than the 2007-2008 school year.
The remaining operating budget will be 85 percent of last year's budget.
"That will be tough for departments, divisions and areas to endure," Ponder said.
The university employed 350 students at a cost of a half a million dollars last year, and maintaining these positions is a high priority according to Bill Haggard, Vice Chancellor for Student Affairs. The budget cuts will not affect work study and student employment.
The reduced budget forces departments and organizations to prioritize spending. For example, going wireless - something many students and faculty want - lacks the impact updating campus security would.
Pierce said upgrading network and data infrastructure on campus will save money in terms of telephone and other communication costs and would allow further security. Sending text messages to students in case of emergencies is one way an upgraded network system would help the university.
Stages
This year's budget cuts occurred in stages.
The chancellor described the year's initial budget as "modestly positive," but said the national and state economies have since changed.
A state-mandated cut at the beginning of the year slashed 0.6 percent of every University of North Carolina system school's budget, a $230,000 loss for UNCA, according to Ponder.
UNCA officials then decided on a 2 percent cut.
Governor Mike Easley announced the 2 percent budget cut for all state agencies in late September.
Additionally, UNCA independently cut 1 percent as a further preemptive move.
The two state-mandated cuts total just over $900,000 for UNCA.
Solutions
The North Carolina Board of Governors sets individual tuition for universities each spring semester, and discussions for tuition increase begin this month.
In what Ponder calls a "counter-intuitive" process, reducing utility usage will not help UNCA cope with the reduced budget. If the campus uses less energy than the budget supports, the state will reduce the budget allotted for utilities. UNCA manages energy usage well, according to officials, and has won awards in the past.
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Increasing enrollment is a long-term strategy to help fund the university, Ponder said. She told SGA representatives to "crank up the charm" as ambassadors and encourage people to enroll at UNC Asheville.
Officials handle funding for building projects, such as the North Carolina Center or Health and Wellness, separately from UNCA's operating budget. Reducing costs for current and planned building projects cannot help the budget situation.
"You might have specific great ideas of how to help the university. We want to harness that creativity," Ponder said.
Pierce requested students send any questions or suggestions on managing the budget to him at jpierce@unca.edu.
"With cost-reduction concepts, getting a whole lot of people thinking and a lot of ideas is something philosophically I feel very strongly about," Pierce said.
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