Richardson and Ramsey stressed the importance of leaving decision-making to the senior managers in individual schools, colleges, centers, institutes and other units who know how best to achieve the cuts in their areas. They also say that the current scenarios developed during intensive discussions with the campus community in recent weeks lay out options that include phasing in some of the cuts involving permanent funds over a four-year period. From open discussions with the campus community has emerged a philosophy that has driven how the cut totals were weighted by unit. Administrative units will shoulder ratios based on 60 percent of the total, compared with 40 percent in academic units such as the College of Arts and Sciences. University officials emphasize that the budget decisions they are now making do not directly reflect actions taken by the N.C. General Assembly, but uncertainty about available revenues has affected this year's budget planning, according to Ramsey.
Legislators continue their work on a final state budget.
The university will have to meet payroll for 27 pay periods instead of 26 this coming fiscal year. Officials said they already are taking steps to ensure this problem does not occur again in 2011. Other factors include commitments to new initiatives and the practice of matching recurring revenues with recurring expenditure needs, according to Ramsey. Several of those funding sources cannot become factors in aiding the budget-cutting process because use of the funds is restricted. Examples include awards for research grants, money allocated for buildings or other capital expenses and private gifts designated by a donor for a specific purpose.