1. What is the overall impact of the Governor's budget on UNCG?
Based on the information we have now, we expect the overall reduction to be about 6%. This includes a 3.6% management flexibility reduction, where UNCG would be able to determine the areas cut as well as a 2% reduction in the funding of salaries and benefits. This is the first step in a three to four step process. Once the Governor proposes her budget, then the North Carolina House and Senate have separate opportunities to accept or change the items in the budget.
2. I hear that the longevity payments have been frozen in the Governor's budget. What does this mean?
While the Governor’s budget proposal for the next two years states that longevity will be frozen, it appears that these payments will not be made. Instead of longevity payments, the Governor has proposed additional time off, see the chart below:
Years of Service |
Additional Hours |
10-15 |
32 |
15-20 |
48 |
20-25 |
68 |
25+ |
94 |
3. I understand President Bowles has suggested that the cuts on the university system be non-recurring. What does this mean and are the cuts in the Governor’s budget non-recurring?
President Bowles has approached the Governor as well as the General Assembly about making the cuts to the university system non-recurring for the duration of the economic crisis. This means that UNCG would not have to make permanent reductions. Non-recurring cuts can be managed from one year to the next with any savings, such as the savings that accumulates when a position is vacant. Recurring cuts would have to come from a permanent source of funding, such as the elimination of a vacant position. Temporary savings cannot be used for a permanent cut. The majority of the cuts in the Governor’s budget are recurring for UNCG. In other words, the budget would be restored for future years to allow expenditures to return to necessary levels.
4. Was there any good news in the Governor's budget?
Yes, there is some good news in the Governor’s Budget. Education in general was not reduced as much as other state agencies. The Governor’s budget fully funds enrollment increases for 2009-10. For UNCG, we are expecting approximately $3.6 million. The Governor’s budget includes additional funding for need-based financial aid.
5. Does the Governor's budget include furloughs for state employees?
The Governor’s budget does not include furloughs for state employees.
6. Does the Governor’s budget require a reduction in force?
While a reduction in force, involuntary terminations, is not mandated by the Governor’s budget, reductions of this magnitude may require UNCG to eliminate some positions.
7. Does the Governor's budget cover the changes in the state medical insurance?
The Governor’s budget does include full funding for the increase in the employee premiums. The proposed changes to the medical insurance are more comprehensive with changes in the prescription benefit, employee co-pay, deductibles, etc. The Governor’s budget does not fund all of the changes in the medical insurance benefit.