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Tag: Peter Hans

  • UNC System budget strategy combines hundreds of job cuts with tuition increases

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    UNC System President Peter Hans speaks during a meeting of the UNC System Board of Governors on Thursday, Feb. 29, 2024, in Raleigh, N.C.

    UNC System President Peter Hans speaks during a meeting of the UNC System Board of Governors on Thursday, Feb. 29, 2024, in Raleigh, N.C.

    kmckeown@newsobserver.com

    Administrative personnel cuts at North Carolina’s public universities are combining with tuition increases to boost budgets by $100 million a year.

    Across the UNC System, 700 administrative positions have been cut since June, President Peter Hans announced during Wednesday’s UNC Board of Governors meeting. That amounts to $50 million in cuts to salaries and benefits.

    Plus, tuition and fee increases the Board of Governors reviewed Wednesday would bring in an additional $50 million a year, according to a presentation given to the board.

    After cuts, ‘we’re watching them like hawks’

    During a discussion about tuition increases, board member Art Pope said before any increase in price, the board must confirm that each campus attempted to balance their checkbooks through increased productivity and efficiency.

    Hans assured him that they had. As proof, he announced the results of his administrative “personnel cap” initiative.

    “I’m happy to report some real progress based on activity in the first six months,” Hans said. “System-wide, this means 700 fewer administrators than we had in June. And before there’s hand-wringing about cuts, because I can promise you, my approval ratings dipped on the campuses significantly after announcing this cap, I want to just emphasize that this is how any large organization should operate.”

    Hans emphasized that the $50 million in savings from cuts can stay in campus budgets and go toward the business of teaching students.

    Board member Harry Brown asked Hans how he plans to ensure that colleges don’t just use the newfound money to hire more administrative personnel.

    “One of the concerns is that [campuses] turn right back around and hire some of these people right back and because that seems to be, I don’t know why, but it seems to be something the campuses always tend to do,” Brown said.

    Hans tried to assuage Brown’s fears.

    “These campus folks are very clever, but we’re watching them like hawks on this,” Hans said.

    “Because we haven’t had … a new state budget in place this past year … we have had some at least temporary — I’m hoping, temporary — compression on the availability of funds,” he said. ”Campuses have largely used the administrative personnel cap reductions savings to cover that, as opposed to hiring new people. But your vigilance is well-placed, and I promise we share that commitment.”

    Tuition increases

    After nearly a decade of holding tuition rates flat, the Board of Governors allowed chancellors across UNC institutions to submit proposals for tuition increases last fall, with a maximum increase of 3% for in-state students.

    Wednesday, the board reviewed those proposals. Next month, members will vote. The increases are set to take effect in the 2026-27 school year for incoming students.

    “This is a challenging, sort of philosophical thing here,” said Kirk Bradley, a member of the board. “But part of our job is to be good fiscal stewards and allow campuses to operate with the quality we expect.”

    Board members Pope and Woody White were among the only board members to push back on the proposed increases. White said he hadn’t received enough campus-by-campus proof that these increases are truly necessary.

    For Triangle schools, the increases proposed are as follows:

    • UNC-Chapel Hill would cost $9,081 for in-state undergraduate students and $49,323 for out-of-state undergraduate students.
    • NC State University would cost $9,030 for in-state undergraduate students and $34,744 for out-of-state undergraduate students.
    • NC Central University would cost $6,774 for in-state students and $20,201 for out-of-state students.

    The only school in the UNC System that didn’t take advantage of the offer to raise tuition was Winston-Salem State University. That school is holding tuition and fees flat for in-state students.

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