Senate budget invests in UNC

(May 31, 2007) The $20 billion budget approved today by the state Senate makes important investments in the UNC system, with better raises for faculty, a new initiative in cancer research and more building projects than the budget approved by the state House.

The Senate budget avoids elimination of 1,088 vacant positions in the UNC system – including 734 faculty positions – that the House budget cut. That move would cost the UNC system $68 million. The Senate also avoids $19 million in UNC middle-management cuts that the House recommended. The Senate does call for $10 million in efficiency improvements system-wide in 2007-08.

Differences between the House and Senate budgets must now be reconciled by a House-Senate conference committee.

Highlights of the Senate plan include:

• An average raise of 5% for UNC faculty – the same as for teachers and community-college instructors. The House budget would give UNC faculty raises of 4.25%.
• $16 million in 2007-08, $32 million in 2008-09 and $50 million in 2009-10 for a new University Cancer Research Fund to pay for cancer research at UNC Hospitals. The money would come initially from the Tobacco Trust Fund established after the state’s 1998 settlement with the tobacco industry.
• $35.6 million in increased financial aid for 46,564 students system-wide.
• $8 million a year for a new Competitiveness Fund to be directed by the system president toward research in nanosciences, biomanufacturing, pharmacogenomics, biotechnology and other targeted disciplines.
• $119.6 million in debt for Phase II of the $160 million Genomics Science Building at Chapel Hill. Legislators provided $28.4 million last year.
• $96 million in debt for an addition to the UNC-Chapel Hill School of Dentistry. The budget also includes $87 million in debt for a new dental school at East Carolina University.
• $32.5 million in debt for the Coastal Studies Institute, to be operated jointly by UNC-Chapel Hill, N.C. State, ECU, Elizabeth City State and UNC-Wilmington.
• $25 million in debt for land acquisition across the UNC system, and $25 million in debt for planning of UNC capital projects.
• $16.5 million for the N.C. Research Campus at Kannapolis, a joint effort of the UNC system, Duke, the N.C. Community College System and Dole Food owner David Murdock.
• $4.6 million to match a $26.9 million gift from former UNC President C.D. Spangler to endow professorships at all 16 campuses, and $1.4 million to provide matching money system-wide for a backlog of endowed chairs.
• $2 million for the UNC School of Law operating budget.
• $2 million system-wide to offer tuition waivers to help attract top graduate students in science and technology.