Fellow Bears,

 As a follow up to last week’s message, we wanted to update you with further details related to our revised FY 21 budget prior to the virtual Town Hall taking place via Zoom tomorrow, Tuesday, Aug. 18, from 3-5:30 p.m. –– we felt it was important for you to have this information now so you could have time to review and develop questions in advance. Because of the commitment shown by the Financial Task Force, the progress made over the summer has been very thoughtful and productive. This has not been easy work, but we would like to recognize the faculty, staff, and students who were involved for their thoughtful consideration and questions.

 As previously indicated, UNC has projected a revenue shortfall of $24 million for this upcoming year due to the decrease in state support plus declines in the enrollment and lower demand for housing and dining. We have been addressing this in the following ways:

 General fund and cash reductions of $6 million that have already been administered as a result of summer furloughs, operating expense slowdowns, seasonal utility savings, the elimination of planned salary increases, and travel restrictions

  1. Identifying temporary and permanent reductions of $10 million through the work of the Financial Task Force over the summer
  2. Utilizing $8 million in operating reserves

 Each of us has spent significant time reviewing our operational and financial budget to address the shortfall based on the recommendations provided by the Financial Task Force. We have outlined those below, have posted them online for you to review, and will discuss them in greater detail tomorrow during the Town Hall via Zoom.

 The Office of the President will see a total reduction of 11% or $90,000

  • The Board of Trustees/General Counsel budget will reduce expenses by 8% or $80,000
  • Academic Affairs has reduced its budget by 4% totaling approximately $4.4 million
  • The Division of Finance & Administration will see a reduction of 11% or $3.8 million
  • The Division of Student Affairs will implement cost savings of 16% equaling approximately $4.7 million
  • University Advancement is reducing its expenses by 6% equaling $300,000
  • Athletics has undergone cost saving measures of 8% totaling $810,000

 The new budget includes reductions to both non-personnel and personnel lines. In addition to summer furloughs already enacted and the early retirement opportunity announced last week, UNC will be eliminating or holding open more than 70 vacant positions and implementing approximately 25 layoffs this fall as a result of decreased demand and/or services in the areas affected. Discussions with many of the employees have already occurred and we plan to complete the remainder of the conversations later this week. To help the individuals impacted, we will be working closely with the Office of Human Resources to support them throughout their transition.

 Careful reflection and deliberation have taken place while the university navigates the financial challenges related to the COVID-19 pandemic. We understand that many of you will have questions tomorrow and in the coming days. The opportunity to hear your perspectives on the budget will be welcomed and we will share more information with you throughout the fall semester.

 Thank you for your continued commitment to maintain our academic mission, and to support our students and our Bear community.

 Rowing, Not Drifting,

 Andy Feinstein, President
Mark Anderson, Provost and Senior Vice President for Academic Affairs
Michelle Quinn, Senior Vice President & Chief Financial Officer
Katrina Rodriguez, Vice President of Student Affairs
Dan Satriana, Vice President & General Counsel
Allie Steg Haskett, Vice President for University Advancement
Darren Dunn, Director of Athletics