The UNC system chancellors are scrambling for money to stretch to faculty, staff and crumbling campuses from the Board of Governors to combat inflation. Last week’s meeting of the Board of Governors on the WCU campus provided a better understanding of how BOG works and how financial decisions are made.
In a heated discussion during the joint committee meeting, Chancellor of UNC Wilmington, Jose Sartarelli, talked about the retention of faculty because of the pay. He claimed that because of inflation, faculty and staff not only deserve raises but need raises. Sartarelli knows other campuses are facing the same issues.
During the press conference on April 7, faculty and staff salaries were questioned with inflation. Raising tuition or going through taxpayer dollars would be the only way to increase salary for staff.
The Board of Governors Chair, Randall Ramsey, reassured the press that the Board does not want to do either. The UNC System President Peter Hans promised to continue the conversation with the legislature in May as costs and inflations continue to climb. The Board was successful in getting a 5% increase in salary for faculty and staff in November 2021.
With a full pandemic in swing and universities across the globe being negatively impacted by inflation, Jennifer Haygood, the chief financial officer of the UNC system, admitted it was one of the most challenging fiscal years. Other than needing money for Elizabeth City State University’s new residential halls or a golf course at NC-State, campuses need building repairs.
When it comes to funding, the universities should be using local businesses and minority-owned businesses to show their support. Gov. Sonja Nichols described the UNC system as economic engines. She expects the Board to do their duty to the community when increasing these budgets because she feels it has not been done in the past.
The meeting of the Committee on budget and finance was followed by a joint meeting with the committee on military and public affairs on April 6.
The formally bid project budget for the design, construction or renovation of capital projects doubled from $2M to $4M for the next 2023-2025 budget. A formal bid refers to large projects that may require more resources and time, like a building.
The informally bid capital project budget was changed from a max of $100k to $250k which passed with a vote of 7 against 4. This budget allows the universities to repair or provide small maintenance projects, like a leak, that are needed swiftly. More information can be found here
“They [UNC Chancellors] run multi-million-dollar organizations. To talk about $100k versus $250k is not a lot of money in the total scheme of things… I want to have a better understanding of how you make sure you have competitive bidding on this,” Gov. Jimmy Clark said. Clark was one of the 4 who voted against the increase in the maximum informal bid capital project budget.
Several BOG members present at the meeting mentioned that many campus capital projects go over the planned budget by 15-20%. There is no information on how the Board handles these changes or where the money comes from.
The BOG approved multiple improvement projects among which is Western Carolina University, N.C. State University, Elizabeth City State University and East Carolina University. One-third of these large projects will be funded by the BOG.
Some of these projects include:
- WCU was approved for a $6M non-recurring fund for Engineering Program Enhancements. These non-recurring funds will support renovation and expansion of laboratory facilities and investment in lab equipment.
- WCU was also approved for over $53k in nonrecurring funds for the $188K (reoccurring) project that is now under construction.
- focused businesses and industries relocating to the region. Non-recurring funds would support renovation and expansion of
- laboratory facilities and the acquisition of lab equipment.
- FSU was approved for demolition of two residential halls because they were no longer safe for students
- They also got additional funding for a new student health and wellness center
- ECSU was approved for a funding of $35M towards their $40M residence hall
- NC-State was approved for a funding of $80M towards their $160M new science building
- NCSU was also approved for a golf course extension
- ASU got funding for a parking deck
- More can be found here
With a $12.3B revenue and $9.4B in expenditures (cash or credit to purchase goods or services) and $2.2B in net operating revenue, the UNC system is still heavily in debt. You can find details here .
Graylon Turner contributed to the story.
