The University of North Carolina
GENERAL ADMINISTRATION
POST OFFICE BOX 2688, CHAPEL HILL, NC 27515-2688
Jonathan C. Pruitt – Senior Associate Vice President for Finance
Telephone: (919) 962-4600
September 17, 2014
2015-17 Budget Memorandum – Number 2
TO:
The Chancellors
FROM:
Jonathan C. Pruitt
SUBJECT:
2015-17 Budget Reductions Planning
As you know, the Office of State Budget and Management is requiring that
the sum total of each agency’s general fund reduction options and
expansion requests equal a net savings of 2% for the 2015-17 budget cycle
(excluding enrollment change funding).
To comply with OSBM’s request, we are asking campuses for 2% reduction
options. Since the Worksheet I process is not yet completed for 2015-17,
the 2% reduction amount for each budget code will be based on the 2014-15
certified budget adjusted for BOG allocations over the biennium
(Attachment 1).
Many of you have asked about the inclusion of tuition as an offset to
budget reductions. While there may be tuition increases recommended or
approved, that will be part of a separate process. Therefore, tuition
increases should not be included in the reduction scenarios.
Reduction options will be submitted via the IBIS system. Attachment 2
provides more explicit details on how data should be entered into the IBIS
system by your campus. Also note that UNC-General Administration will
receive the reduction scenarios and then submit on behalf of the University
to OSBM. Please complete your Worksheet II reduction scenarios in IBIS
no later than the close of business on Friday, September 26. Please place
your reduction options in priority order, with priority #1 being the
reduction that you would implement first.
In addition to the IBIS entries, we ask that you submit a short narrative
document (not more than one page) to explain your campus process and
strategy for arriving at the reductions under consideration. That document
may be emailed separately to Andrea Poole (arpoole@northcarolina.edu).
Attachments
cc: Chief Academic Officers
Chief Finance Officers
Legislative Liaisons
Ms. Elizabeth Grovenstein, OSBM
Attachment 1
THE UNIVERSITY OF NORTH CAROLINA
2014-15 Estimated Base Budget / 2% Reductions
13-14 Adjustments
Institution
ASU
ECU - AA
ECU - HA
ECSU
FSU
NCA&T
NCCU
NCSU
NCSU - Ag Res
NCSU - Coop Ext
UNCA
UNC-CH - AA
UNC-CH - HA
UNC-CH - AHEC
UNCC
UNCG
UNCP
UNCW
UNCSA
WCU ¹
WSSU
NCSSM
UNC-GA, Operating
UNC-GA, Inst. Prog.
UNC-GA, Related
Educ. Prog.
BD307
Budget FY2014-15
Code Appropriation
13-14
13-14
Enrollment
Adjustment Reductions 2
16080 $127,908,903 $4,488,582
16065 219,994,976
2,433,870
16066
64,841,247
–
16086
35,385,057 (2,104,151)
16088
49,336,186
(117,069)
16070
96,882,428
224,476
16090
84,084,488
(866,372)
16030 391,884,244 12,303,794
–
16031
54,911,053
–
16032
39,859,682
16055
37,465,299
(130,606)
16020 274,515,010
1,468,900
16021 190,741,444
–
–
16022
42,418,348
16050 192,683,456
6,885,729
16040 153,783,960
(96,112)
16082
54,175,566 (1,092,276)
16060
96,484,692
4,824,566
16092
29,146,203
483,643
16075
83,161,081
2,743,886
16084
68,759,812 (2,435,251)
16094
19,126,182
108,882
–
16010
34,752,475
16011
(25,078,944) (29,124,491)
16012
Aid to Priv. Colleges 16015
TOTAL
14-15 Adjustments
14-15
14-15
14-15
Strategic Management Nonresident
UG Tuition
Directions
Flex
($4,702,305)
(8,035,492)
(2,383,753)
(1,226,510)
(1,713,246)
(4,753,116)
(3,776,300)
(17,449,767)
(2,095,595)
(1,521,182)
(461,548)
(11,153,286)
(8,056,690)
(1,792,860)
(6,290,957)
(6,268,425)
(2,102,007)
(3,940,132)
(333,621)
(3,369,845)
(1,803,510)
(235,622)
(1,139,273)
94,605,042
($717,915)
(1,205,051)
(350,982)
–
(271,446)
(519,397)
(459,917)
(2,189,984)
(116,346)
(84,455)
–
(1,495,646)
(1,002,853)
(89,493)
(1,113,922)
(806,762)
(297,115)
(580,742)
–
(474,460)
(360,703)
–
(62,811)
12,200,000
Salary & Benefit Increases
14-15
Enrollment
Adjustment
SHRA/NCSSM
Teacher Comp.
& TSERS Incr.
Estimated
14-15
Base Budget
14-15
Reduction
Amt. (2%)
$301,341
462,751
116,707
50,709
93,809
206,069
174,516
854,511
68,343
61,411
75,183
652,187
345,912
67,471
423,799
335,264
94,792
245,837
46,945
160,431
126,236
9,260
26,516
(5,000,000)
$1,149,373
2,125,556
411,657
316,149
534,663
1,017,320
844,471
3,552,596
508,761
319,000
356,205
2,635,809
1,394,667
89,322
1,860,067
1,361,682
494,157
1,103,752
240,609
804,402
644,823
519,765
256,057
(23,542,937)
$126,724,819
211,880,166
62,368,912
30,353,851
48,226,921
89,663,683
81,355,900
389,613,232
52,871,387
38,340,593
37,454,785
255,786,470
182,358,573
40,381,395
197,662,411
143,013,051
52,716,633
100,287,619
28,525,449
85,404,171
64,000,143
19,645,239
33,662,979
43,922,392
$2,534,496
4,237,603
1,247,378
607,077
964,538
1,793,274
1,627,118
7,792,265
1,057,428
766,812
749,096
5,115,729
3,647,171
807,628
3,953,248
2,860,261
1,054,333
2,005,752
570,509
1,708,083
1,280,003
392,905
673,260
878,448
EHRA
14-15
Negative Compensation
Reserve
Adj. Factor
($544,014) ($1,217,447)
$495,888 ($437,587)
(913,152) (2,764,630)
325,056
(543,718)
–
–
–
(265,964)
–
(201,526) (1,021,874) (844,003)
(246,832)
(187,289) 1,203,948
(405,803)
–
(708,451) (2,759,010)
73,364
–
(487,917)
(557,982) 2,400,913
(2,323,310) (1,737,096) 5,196,018
(477,774)
(404,829)
–
–
–
(293,863)
–
–
–
–
(368,922)
519,174
–
(1,586,701) (10,571,045) 1,474,657
(153,415)
(1,063,907)
–
–
–
(311,393)
–
–
–
–
(675,278) (1,055,779) 4,945,296
(733,609)
(731,442) (1,938,545) (1,892,960)
–
(315,204)
(132,099) 1,890,819
(528,084) (3,296,888) 5,974,618
–
– (1,040,854)
(17,476)
–
–
(443,589)
(377,938) 3,200,203
(218,664)
(243,210)
101,775
(571,165)
–
–
116,772
–
(169,985)
–
–
–
12,234,746 27,243,157 (24,940,606) 5,326,425
107,968,501
104,191,588
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
107,968,501
104,191,588
–
–
2,629,382,937
–
–
–
–
–
–
–
–
(1,002,074)
2,628,380,863
48,324,415
* Base budgets and 2% reductions are calculated at the budget code level; however, campuses with multiple budget codes may distribute the campus’s 2% reductions differently among the budget codes.
¹ Includes NC Arboretum.
2
The 2013-14 reductions include $65.8M management flexibility reduction, $25.8M strategic directions efficiency reduction, and $3M strategic directions priorities reduction
Attachment 2
Additional University-Specific Information on IBIS Entries
Category Codes to be Entered in the “Request Title” Section before the
Campus Title
In previous years, the University has used category codes to identify and sort the
types of reductions proposed. We will continue to use those for the 2015-17
biennium. Please enter each code preceding each request title that you enter on the
Worksheet II form.
AA = Academic Administration
AS = Academic Support
AV = Advancement
BA = Business Affairs
CI = Center or Institute
CS = Campus Safety
FAC = Reduce/Eliminate Faculty Teaching Positions
FWL = Faculty Workload Adjustment
HR = Human Resources
IT = Information Technology
LP = Low Productivity/Low Enrollment Academic Program
MM = Reduce Middle Management or Senior Academic & Administrative Officers
PS = Public Service
PP = Operation of Facilities/Physical Plant
RAR = Restructuring Academic Programs or Research Activities
RE = Realignment of Funding Sources
RSP = Research/Sponsored Programs
SS = Student Support
An example might be an instance where faculty would be required to teach more
courses, to be entered as: FWL – Increase Teaching Loads in “ABC” Department.
Notation of Complete Elimination of a Program or Shifting a Program
Completely Away from State Funds
Please be sure that your program descriptions clearly outline if/when a program is
proposed to be completely eliminated OR if the program will continue to exist but be
funded solely from non-state funds.
Justification in IBIS (include description of FTEs eliminated)
Please include in your IBIS justification, a description of the total FTEs eliminated—
how many were filled positions, how many were vacant positions, and how many
were fund-shifted (OSBM request). We will convey to OSBM that the FTE
information shared is your best estimate at this point in time and that it could
change in the future.
To limit the total number of Worksheet II submissions for the System, to the extent
possible, please group similar reductions into one Worksheet II.