Report to
Faculty Senate
December 2,
2010
Prepared November 19,
2010
Submitted by John
Pierce, Vice Chancellor for Finance and Operations
Budget
Each
campus was asked by the UNC General Administration to prepare 5% and 10% permanent
state appropriation cut scenarios by October 25th. To UNC Asheville, this would mean
approximately $2M and $4M, respectively, from our state appropriation of
$40M. We were asked to do this without
any consideration of tuition increases.
The 2nd half (for 2011-12) of our two year tuition plan,
approved by the legislature in July, 2010, would yield a roughly $900K offset
to these cuts.
We
allocated these cuts to Vice Chancellors based on a combination of factors
including: 1) our University Strategy for 2009-11 Resource
Allocation, approved by the University Planning Council, 2) areas of focus
without reduction, and 3) a comparison of our spending to other COPLAC schools.
The
plans that we submitted included gross dollar amounts by area, and did not
identify specific programs, positions or functions. The task for us now is to
determine more specifically how we would make those cuts.
There
are a number of factors that will play into the ultimate cut and offsets. Some of these factors are the significant
change from the recent elections in the legislature, supplemental campus
initiated tuition increases, enrollment growth monies, if any, and several
other factors. I will discuss some key
points relating to our budget situation at the Faculty Senate meeting.
The
State revenue for the current fiscal year ending June 30, 2010, is on track
with projections through the end of October, 2010, and economy-based taxes are
starting to show signs that a slow recovery is underway. However, those projections call for
improving employment gains, rising consumer confidence, and a decline in the
housing problems over the future quarters.
Residence Hall – Financing
and Construction
We
prepared pro-forma financial information and received approval by the Board of
Governors in November to proceed with a $26M bond issuance for the Governor’s
Village renovation and a New Residence Hall.
The
design firm of Gantt Huberman Architects, in partnership with Kieran
Timberlake, is preparing bid documents for the construction of Governors
Village renovations; and it has begun construction documents for the New
Residence Hall. Anticipated completion
date for Governors Village Renovation is August 2011. Anticipated completion date for the New
Residence Hall is August, 2012.
One
exciting aspect of this project: We are exploring the possibility of using the
roof of the New Residence Hall for solar hot water heating panel arrays that
would provide 100% of the domestic hot water needs for the New Residence Hall,
and potentially other nearby residence halls.
An option for a geothermal well system on the nearby Athletic fields
that will provide the main heating and air conditioning source for this new
building is also being pursued.
Tuition and Fees
Tuition
and fees are being worked through the campus process and will be presented to
the Board of Trustees on December 6, 2010.
UNC Pharmacy School
We
are continuing to work through the financial and logistical process relating to
the UNC Pharmacy School. Space has been
largely agreed upon, under the leadership of Keith Krumpe, Dean of Natural
Sciences, and both schools will work together to begin the design process for
renovations and technology. A space
agreement is being finalized and a memorandum of understanding will be
forthcoming.
Replace Carmichael Hall
and University Lecture Hall
This
project, currently priority #1 on the University’s capital priority list, would
replace these academic facilities with expanded classroom and lecture space.
Initial planning money for this project was allocated by the Legislature and
subsequently withdrawn during the economic downturn. Over last winter, there
were numerous roof leaks in the building caused by melting snow and a roof that
is in increasingly poor condition. This
has caused disruptions in the building, including the necessity for asbestos
floor and ceiling removal in selected areas.
The University has designed the replacement of both roofs and should
receive 2010 Repair and Renovation funds soon so that the roof replacement
construction can begin. The State did
not allocate new construction monies to the university system for the 2010-11
fiscal year and is facing a more difficult budget
situation in 2011-12.