UNC System Finds It Hard to Put Brakes on Spending

New programs started during flush times require continued funding now

RALEIGH (By Jay Schalin, Carolina Journal) - The problem with letting “the good times” roll is that it is hard to stop the rolling when the economy goes downhill.

During the last few years, while North Carolina’s powerful economy filled the state coffers, the University of North Carolina started many new, expensive programs. After the 2007 legislative season, UNC officials praised the General Assembly for its generosity.

This year, with tax revenues falling, those new programs still require funding, even as the university system explores making cuts to key academic programs. Richard Bostic of the legislature’s Fiscal Research Division estimates that the system will need $38 million in permanent cuts and $143.5 million in “one-time budget reversions.” The Fiscal Research Division provides information about the budget to the legislature.

“These cuts will be painful,” UNC system President Erskine Bowles said at the Board of Governors meeting Feb. 13.