The University of North Carolina
Board of Governors
S u p p l e m e n t t o
L o n g - R a n g e P l a n n i n g
2 0 0 4 - 2 0 0 9
Members of the Board of Governors
The University of North Carolina
Jim W. Phillips, Jr., Chair
Greensboro
J. Craig Souza, Vice Chair
Raleigh
Bradley T. Adcock
Cary
Brent D. Barringer
Cary
Peaches Gunter Blank
Nashville, TN
R. Steve Bowden
Greensboro
F. Edward Broadwell, Jr.
Asheville
Laura W. Buffaloe
Roanoke Rapids
William L. Burns, Jr.
Durham
John W. Davis III
Winston-Salem
Phillip R. Dixon
Greenville
Ray S. Farris
Charlotte
Dudley E. Flood
Raleigh
Hannah D. Gage
Wilmington
H. Frank Grainger
Cary
Peter D. Hans
Raleigh
Charles A. Hayes
Sanford
James E. Holshouser, Jr.*
Southern Pines
Patsy B. Perry, Secretary
Durham
Peter Keber
Charlotte
Adelaide Daniels Key
Asheville
G. Leroy Lail
Hickory
Charles H. Mercer, Jr.
Raleigh
Fred G. Mills
Raleigh
Charles S. Norwood
Goldsboro
Cary C. Owen
Asheville
Derek Pantiel**
Durham
Gladys Ashe Robinson
Greensboro
Irvin A. Roseman
Wilmington
Benjamin S. Ruffin*
Winston-Salem
Estelle ‘Bunny’ Sanders
Roper
William G. Smith
Durham
Priscilla P. Taylor
Chapel Hill
David W. Young
Asheville
* Member Emeritus
** Ex Officio
i
THE UNIVERSITY OF NORTH CAROLINA
BOARD OF GOVERNORS
With a change in the Presidency of the University of North Carolina, the decision was
made to provide a supplement to 2004-2009 Long-Range Planning rather than produce
a complete Long-Range Planning document for the period 2006-2011. With a new
President and a new focus on priority setting, the supplement includes items that
have been developed in recent months. Section IV, “Priorities and Strategic
Directions,” contains the priorities for the University of North Carolina and the
Strategic Directions as revised by the Board. The priorities are the result of a process
initiated by President Bowles with the Chancellors, who ranked alternatives and
eventually arrived at twelve priorities that were reviewed and recommended by the
President and approved by the Board. The Board endorsed a new Strategic Direction
in Economic Transformation. This was the result of wide discussion among Board
members led by a special committee of the Board on economic development. That
committee’s report is included as Section V, “The Role of the University of North
Carolina in Economic Transformation and Development.”
The Supplement also includes sections that provide enrollment and graduation data
as well as demographic and other trend data affecting higher education in North
Carolina. Future planning will result in documents that will summarize achievements
and lay out directions and goals for the University and its constituent institutions as
they strive to serve the citizens of North Carolina.
Appalachian State
University
East Carolina
University
Elizabeth City
State University
Fayetteville State
University
North Carolina
Agricultural and
Technical State
University
North Carolina
Central University
North Carolina
School of
the Arts
North Carolina
State University
at Raleigh
University of
North Carolina
at Asheville
University of
North Carolina
at Chapel Hill
University of
North Carolina
at Charlotte
University of
North Carolina
at Greensboro
University of
North Carolina
at Pembroke
University of
North Carolina
at Wilmington
Western Carolina
University
Winston-Salem
State University
An Equal Opportunity/
Affirmative Action
Employer
ii
UNC Board of Governors Resolution
Approving the Supplement to Long-Range Planning 2004-2009
Be it resolved by the Board of Governors of the University of North Carolina:
That the document entitled Supplement to Long-Range Planning 2004–2009 is approved;
and
That the President be authorized to make such editorial improvements in the document as
he finds necessary in the interest of accuracy and completeness and to have the
Supplement to Long-Range Planning 2004–2009 distributed electronically.
ADOPTED: August 11, 2006
iii
Contents
I. Introduction..............................................................................................................................................................1
II. Higher Education in North Carolina......................................................................................................................2
III. Trends Affecting North Carolina Higher Education............................................................................................9
A. Demographic Trends .........................................................................................................................................9
B. Economic Trends .............................................................................................................................................12
C. Health and Well-being Issues..........................................................................................................................18
D. The University’s Response to Demographic, Economic, Health and Well-being, and Education Trends24
IV. Priorities and Strategic Directions .....................................................................................................................26
V. The Role of the University of North Carolina in Economic Transformation and Development ........................36
Global Challenges.................................................................................................................................................36
Goal 1: Deliver learning that meets the needs of the 21st century economy .....................................................39
Goal 2: Enhance the capacity of public institutions to implement successful and sustainable economic
development policies.............................................................................................................................................41
Goal 3: Enhance opportunities for research and innovation .............................................................................42
Goal 4: Provide support to build competitive businesses...................................................................................44
Goal 5: Grow high-quality, healthy and attractive communities ......................................................................46
Conclusion .............................................................................................................................................................47
Appendix A. UNC Academic Program Inventory......................................................................................................48
Appendix B. Research, Public Service, and Instructional Centers of the University of North Carolina ................49
Tables
Table II.1. Higher Education in North Carolina......................................................................... 5
Table III.1. 2003 Industry Value for Selected Industries in North Carolina ............................. 16
Table III.2. Selected North Carolina Industries with National Rank in Employment, Average
Wage, and Five-Year Wage and Employment Change: 2003 ............................................. 16
Table III.3. Indicators of Child Well-Being for NC and US: 1990 and 2004.............................. 18
Table III.4. Most Recent Results of North Carolina Student Performance on National
Assessment of Educational Progress Scores..................................................................... 20
iv
Figures
Figure II.1.Fall Enrollment Trends (African American Students) ............................................... 6
Figure II.2. Fall Enrollment Trends (Other Minorities, All Sectors) ............................................ 6
Figure II.3. Fall Enrollment Trends for Women......................................................................... 6
Figure II.4. Fall Enrollment Trends (Students Ages 25 and Older) ............................................ 7
Figure II.5. Fall Enrollment Trends (Part-Time Students) ......................................................... 7
Figure II 6. Fall Enrollment Trends (Percent Out-of-State Students) ......................................... 8
Figure II.7 Fall Enrollment Trends (Graduate/First Professional) ............................................. 8
Figure III.1. Projected Growth in NC’s Population (in millions): 2000–2030............................. 10
Figure III.2. Components of Population Change for NC: 2000–2004 (in thousands) ................ 10
Figure III.3. Percentage Growth of NC Racial and Ethnic Groups: 1995–2004 ........................ 11
Figure III.4. Percentage Change in NC and US Population by Age Groups: 2000–2030 ........... 11
Figure III.5. The “Dependency Ratio”: 2000–2030................................................................... 12
Figure III.6. Manufacturing Plant Closings: 2003 & 2004....................................................... 13
Figure III.7. Employment Trends in Seven Economic Sectors: 1997–2004 .............................. 13
Figure III.8. State and National Employment Changes: 1997-98 to 2003-04........................... 14
Figure III.9. Percent Growth in US, Southeast, and NC Gross State Product: 2001–2004 ....... 14
Figure III.10. NC and US Per Capita Income Average: 1980–2003........................................... 15
Figure III.11. Unemployment Rates in NC Counties: April 2004 ............................................. 15
Figure III.12. Average Annual Income of Adults 25 or Older in the US by Level of Educational
Attainment: 2003 ............................................................................................................ 17
Figure III.13. High Growth Occupations Requiring a achelor’s or Graduate Degree Projected
2002–2012 (thousands) ................................................................................................... 17
Figure III.14. Percent of NC’s Population Below the Poverty Level: 2000 ................................. 19
Figure III.15. NC Death Rates from Cancer: 1997–2001 ......................................................... 19
Figure III.16. NC Death Rates from Heart Disease: 1999–2001............................................... 19
Figure III.17. High School Attainment in NC Compared to the National Average: 1970–2004.. 21
Figure III.18. College Attainment in NC Compared to the National Average: 1970–2004 ......... 21
Figure III.19. NC Educational Attainment by Racial/Ethnic Group: 2000–2004 ..................... 22
Figure III.20. Percent Enrollment of NC High School Graduates in UNC Institutions By Race
and Ethnic Group: Fall 2002 and 2004............................................................................ 22
Figure III.21. Annual Percentage of Recent NC High School Graduates Enrolling in UNC
Institutions: 1994–2004 .................................................................................................. 23
Figure III.22. Projected NC High School Graduates: 2005–2020 ............................................. 23
Figure III.23. NC Community College Transfers to UNC Institutions for Academic Years
1995-96 to 2004–05 ........................................................................................................ 24
1
I. Introduction
With the change in leadership in January 2006, it was decided not to proceed with the
publication of a long-range planning document since the many reviews and new initiatives
introduced would make such a document almost immediately outdated. Subsequently, the
decision was made to follow a precedent from the mid-nineties and prepare a supplement to
the previous long-range planning document that would include select new, relevant items.
Of paramount importance has been a priority-setting process initiated by President Bowles in
January. Chancellors were the key participants in the process, which resulted in twelve
priorities in rank order that were recommended by the President and approved by the Board of
Governors in May 2006. Previously the Board had added a seventh strategic direction on
economic transformation. The priorities and the strategic directions are included in Section IV.
The priorities are driving the budget development process for the 2007-09 biennium budget,
and goals and measures are being developed for each priority. Student success understood as
access, retention, graduation, and affordability and an outstanding faculty are the top two
priorities. In concert with the President’s priority for K-12, producing more and better teachers
and improving schools was the next priority.
The Board of Governors’ Special Committee on the Role of the University in Community and
Economic Development culminated with the Board’s approval of the Committee’s report at the
May 2006 meeting. It is included as Section V.
Other sections update the data on higher education in North Carolina (Section II) and provide
the context for and trends affecting higher education (Section III). Two appendices provide
links to the academic inventory of all degree programs and to the campus-based and inter-institutional
centers and institutes.
2
II. Higher Education in North Carolina
The Development of Higher Education in North Carolina
Higher education has long played a vital role in the economic, political, and social life of North
Carolina. One of the first actions of the State of North Carolina after it declared independence
in 1776 was to adopt a Constitution that directed, in part, that “all useful Learning shall be
duly encouraged and promoted in one or more Universities.” [Constitution of North Carolina,
Sec. 41 (1776)] The General Assembly of 1789 responded to that mandate by chartering the
University of North Carolina and endowing it with the escheats to which the State as sovereign
was entitled. In 1868, the new State Constitution gave more explicit recognition to the
University, as did an 1873 constitutional amendment. Throughout that period, the University
at Chapel Hill was the only state-supported institution of higher education in North Carolina.
Between 1877 and 1969, the General Assembly created or acquired for the State the other
institutions that are today part of the University of North Carolina. Those institutions,
identified by their current titles and the dates when they became state institutions, are
Fayetteville State University (1877), North Carolina State University at Raleigh (1887), the
University of North Carolina at Pembroke (1887), the University of North Carolina at
Greensboro (1891), North Carolina Agricultural and Technical State University (1891),
Elizabeth City State University (1891), Western Carolina University (1893), Winston-Salem
State University (1897), Appalachian State University (1903), East Carolina University (1907),
North Carolina Central University (1923), North Carolina School of the Arts (1963), the
University of North Carolina at Charlotte (1963), the University of North Carolina at Asheville
(1963), and the University of North Carolina at Wilmington (1963).
The Higher Education Reorganization Act of 1971 “redefined” the University of North Carolina
and “redesignated” the constitutional Board of Trustees of the University of North Carolina as
the “Board of Governors of the University of North Carolina.” Thus, the University of North
Carolina is today the same legal entity that was created in 1789, despite changes in the name
of its governing board, the number of its campuses, its size and scope, and almost every other
particular aspect of the institution. In 1963, three community colleges and 20 closely related
industrial education centers and technical institutes were combined to form the North Carolina
Community College System. Between 1964 and 1968, all of the industrial education centers
became technical institutes or comprehensive community colleges. Today, the North Carolina
Community College System includes 58 community colleges or technical colleges and
institutes, plus a Center for Applied Textile Technology. The State Board of Community
Colleges governs that system.
Along with the public colleges and universities, a significant private sector of higher education
has long contributed much to the life of the State. That sector developed, for the most part, in
the century and a half since 1830. There are currently 37 private colleges and universities in
North Carolina. One of the 37, Salem College, was founded as an academy in 1772, and
Louisburg College evolved from Franklin Academy, which was chartered in 1787 and reopened
its doors in 1805, and five of them trace their origins to the decade of the 1830s: Wake Forest
University (1834), Davidson College and Guilford College (1837), and Duke University and
Greensboro College (both in 1838). Of the remainder, 21 were founded in the 19th century,
and nine in the 20th century (five of them since 1950).
Licensure of Nonpublic Post-Secondary Institutions
When the General Assembly redefined The University of North Carolina in 1971, in recognition
of the array of educational institutions in the nonpublic sector, it included the regulation of
nonpublic, postsecondary institutions as a responsibility of the Board of Governors. The
Board’s regulatory authority was to insure consumer protection for North Carolina residents.
Section II. Higher Education in North Carolina 3
In February 1974, the Board of Governors adopted Rules and Standards for licensing
nonpublic educational institutions seeking to confer degrees in North Carolina. The Rules and
Standards have been revised several times since then; they were last revised, and approved by
the Board, to focus on an education of good quality, in November 2004.
Thus, postsecondary, nonpublic institutions seeking to offer postsecondary degrees or degree
activity in the State shall be subject to licensure, unless the institution offers religious
education intended for a vocation or offers postsecondary education for military personnel
stationed on active duty on a military base. There are currently 21 licensed institutions in the
State, and several others are seeking licensure. There are 95 postsecondary institutions that
are exempt from licensure because they offer religious instruction or are operating on a military
base. In 2005, the Board licensed its first private law school, the Charlotte School of Law.
Nonpublic Post-Secondary Licensed Institutions
• Art Institute of Charlotte—Charlotte, NC
• Averett University—Eden, NC
• Boston University—Camp Lejeune Marine Corps Base/New River Marine Corps Air
Station and Cherry Point Marine Corps Air Station
• Central Michigan University—Fayetteville, NC and Seymour Johnson Air Force Base
• Charlotte School of Law—Charlotte, NC
• DeVry University—Charlotte, NC
• ECPI College of Technology—Charlotte, Greensboro and Raleigh, NC
• Embry-Riddle Aeronautical University—Fort Bragg, Pope Air Force Base and Seymour
Johnson Air Force Base
• Johnson & Wales—Charlotte, NC
• King’s College—Charlotte, NC
• Maharishi University of Enlightenment—Boone, NC
• Miller-Monte Technical College—Wilmington, NC
• Old Dominion University—Originally licensed in Raleigh and Smithfield, NC but closed
sites and now offer distance education classes from Virginia to North Carolina residents
• School of Communication Arts—Raleigh, NC
• South College—Asheville, NC
• Southern Illinois University—Camp Lejuene, Cherry Point Marine Corps Air Station and
New River Marine Corps Air Station
• Strayer University—Cary, Charlotte, Greensboro and Raleigh, NC
• Troy State University—Fort Bragg
• University of Florida—Charlotte, NC
• University of Phoenix—Charlotte, NC
• Virginia Polytechnic Institute and State University—Winston-Salem, NC
Military Exempt Institutions
• Averett University—Camp Lejeune Marine Corps Base
• Boston University—Camp Lejeune Marine Corps Base/New River Marine Corps Air
Station and Cherry Point Marine Corps Air Station
• Central Texas College—Fort Bragg and Pope Air Force Base
• Embry-Riddle Aeronautical University—Fort Bragg, Pope Air Force Base and Seymour
Johnson Air Force Base
• Liberty University—Fort Bragg
• Park University—Cherry Point Marine Corps Air Station
• Southern Illinois University—Camp Lejuene, Cherry Point Marine Corps Air Station and
New River Marine Corps Station
• Troy State University—Fort Bragg
• Webster University—Camp Lejeune Marine Corps Base, New River Marine Corps Air
Station, Cherry Point Marine Corps Air Station, Pope Air Force Base
Section II. Higher Education in North Carolina 4
Section II. Higher Education in North Carolina 5
Enrollment Trends
Institutions in all three sectors have experienced considerable growth in enrollments and
degrees conferred, as Table II.1 shows. Fall enrollments increased by 25.6 percent during the
period 1984-1994 and by nearly 30 percent during the period 1994-2004. It is likely that even
greater growth in enrollments will occur during the current decade as the annual number of
high school graduates increases and as more working adults seek additional education.
Table II.1. Higher Education in North Carolina1
Measure 1984 1994 2004
Number of postsecondary institutions:
Community colleges
Total 58 58 58
College transfer 24 51 58
Private 4-year colleges & universities 31 33 36
Private 2-year colleges 7 4 1
Public 4-year colleges & universities 16 16 16
Total number of institutions 112 111 111
Fall headcount enrollments:
Community colleges
Total curriculum 112,633 147,842 199,837
College transfer 16,584 34,452 46,647
Private 4-year colleges & universities 49,855 60,048 77,883
Private 2-year colleges 4,116 1,828 571
Public 4-year colleges & universities 122,435 153,515 189,615
Total enrollment 289,039 363,233 467,906
Degrees conferred: 1983-84 1993-94 2003-04
Sub-baccalaureate certificates 6,275 10,217 13,988
Associate degrees 10,979 13,531 16,982
Baccalaureate degrees 25,301 32,810 38,990
Master's degrees 5,376 7,372 11,525
Doctoral degrees 771 988 1,268
First professional degrees 1,594 1,673 2,077
Law 740 788 867
Dentistry 82 70 70
Pharmacy 9 77 212
Medicine 415 422 445
Veterinary medicine - 71 76
Theology 348 245 407
Total degrees conferred 50,296 66,591 84,830
Increased Participation in Higher Education by Minorities and Women
Much of the increase in enrollments and degrees conferred in the last two decades is due to the
higher rates of college attendance by minorities, women, non-traditional students, and college
students returning for post-baccalaureate studies. Figure II.1 and Figure II.2 show minority
enrollment trends for all higher education sectors in NC (UNC, NC Community College System,
private institutions) through fall 2004. Although community college and private institution
enrollment analyses were not available for fall 2005 at the time of this printing, UNC figures for
fall 2005 were available. In fall 2005, African American enrollment at historically white UNC
institutions reached 16,500 (10.51 percent), the highest number ever although slightly down in
percentage from the previous year. Non-African American enrollment at historically black
institutions was 16.1 percent. Overall fall 2005 enrollments by racial and ethnic group were
1 Numbers of first professional degree categories (in italics) are included in the total number of first
professional degrees (above).
Section II. Higher Education in North Carolina 6
black, 23.1 percent; white, 66.1 percent; American Indian, 1.2 percent; Asian, 2.1 percent;
Hispanic, 2.0 percent; and unknown/other, 4.1 percent.
Figure II.1.Fall Enrollment Trends (African American Students)
Figure II.2. Fall Enrollment Trends (Other Minorities, All Sectors)
Figure II.3. Fall Enrollment Trends for Women
17%
18%
19%
20%
21%
22%
23%
24%
25%
26%
94 95 96 97 98 99 00 01 02 03 04
UNC
Private
CC System
All Sectors
50%
52%
54%
56%
58%
60%
62%
64%
66%
84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04
UNC
CC System
Private
All Sectors
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
94 95 96 97 98 99 00 01 02 03 04
Am.Ind.
Asian
Hisp.
Section II. Higher Education in North Carolina 7
Other Higher Education Enrollment Trends
UNC General Administration tracks various enrollment trends in North Carolina, and the
following charts display some of these trends. Increases over the last two decades in non-traditional
students attending college have resulted in greater participation by older students
in four-year institutions (Figure II.4), although the part-time percentage has remained
relatively stable over the last two decades (Figure II.5).
Although independent colleges and universities continue to attract a large percentage of their
students from outside North Carolina, these percentages have decreased during this decade.
Out-of-state enrollments in UNC institutions have leveled off after an increase in the mid-
1980s (Figure II.6). As the demand for advanced education has grown, the percentage of
students enrolled in graduate and professional programs has increased somewhat in the last
two decades (Figure II.7).
Figure II.4. Fall Enrollment Trends (Students Ages 25 and Older)
Figure II.5. Fall Enrollment Trends (Part-Time Students)
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04
UNC
CC System
Private
All Sectors
0%
10%
20%
30%
40%
50%
60%
70%
84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04
UNC
CC System
Private
All Sectors
Section II. Higher Education in North Carolina 8
Figure II 6. Fall Enrollment Trends (Percent Out-of-State Students)
Figure II.7 Fall Enrollment Trends (Graduate/First Professional)
10%
12%
14%
16%
18%
20%
22%
84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04
UNC
Private
Both Sectors
0%
10%
20%
30%
40%
50%
60%
84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04
UNC
CC System
Private
All Sectors
9
III. Trends Affecting North Carolina Higher Education
This section describes trends in the State and in the Nation that will have an impact on how
the University accomplishes its mission for the remainder of this decade. These trends and the
challenges and opportunities that they represent inform the strategic directions adopted by the
Board of Governors for the period 2006-2011.
A. Demographic Trends
National demographic trends from the 2000 Census: The US population, while continuing
to grow through births and immigration, is becoming proportionately smaller compared to the
rest of the world’s population, and it is becoming older and more diverse ethnically and
racially. In Census 2000, 281.4 million people were counted in the United States, a 13.2
percent increase over 1990 and the largest numerical increase in US history. By July 2004,
the population had increased by 4.3 percent to 293.7 million. During the three decades from
2000 to 2030, the South is projected to add the most residents (43 million), followed by the
West (28.9 million), the Midwest (6.1 million) and the Northeast (4.1 million).
Among age groups in the United States, the strongest growth during this decade will occur in
the 35-65 age group, whose members will subsequently inflate the number of persons aged 65
and older. By 2020, about 18 percent of the US population will be over 65, compared to 14
percent today.
Overall, the US population will become increasingly diverse due to changed patterns of
immigration and differential birth rates among various racial and ethnic groups. The majority
of immigrants to the US in the first half of the 20th century came from European countries,
whereas the majority of immigrants in recent years have come from Asia and Latin America.
According to the most recent US Census Bureau projections, by 2020, Hispanics will constitute
16 percent of the US population and African Americans 13 percent. The Hispanic population
in the US exceeded 41million in 2004 and is increasing at three times the rate of total
population growth.
Population trends in North Carolina: North Carolina’s population will continue to exceed the
national average in growth rate and will become more diverse. The State is outpacing growth
and level of diversity projected by the Census Bureau in 1995. Although North Carolina
ranked eleventh in the Nation in total population, it was sixth in population increase in Census
2000—a 21.4 percent increase over its 1990 population. From 2000 to 2030, North Carolina’s
population is projected to increase by over 4.178 million—a 52 percent increase—and have the
Nation’s seventh largest population. Only four states (California, Florida, Texas, and Arizona)
will grow faster during this period. Nearly a quarter of North Carolina’s population is 18 years
old or younger (24.4 percent), and 12 percent of its population is 65 or older.
North Carolina has a larger percentage of African American (21.6 percent) and American Indian
(1.2 percent) residents than the national average (12.3 percent and 0.9 percent). It has a lower
proportion of white (72.1 percent compared to 75.1 percent), Asian (1.4 percent compared to
3.6 percent), and Hispanic (4.7 percent compared to 12.5 percent) residents than the national
average. The implication of this is that North Carolina is already a more diverse state than the
national average, and it is becoming increasingly more diverse.
In 1995 North Carolina’s population was projected by the Census Bureau to grow from
7,777,000 in 2000 to 8,840,000 by 2015. More recent projections show that the State is
growing much faster than projections of a decade ago suggested. NC’s actual population in
Census 2000 was 8.049 million (compared to the projected 7.777 million), and more recent
projections show the State already having a larger population by 2010 than was originally
Section III: Trends Affecting Higher Education in North Carolina 10
projected for 2015. Figure III.1 shows North Carolina’s Census 2000 population (8,049,000)
and its projected population by decade to 2030.
Figure III.1. Projected Growth in North Carolina’s Population (in millions): 2000–2030
(US Census Bureau)
8.049
9.346
10.709
12.227
0
2
4
6
8
10
12
14
2000 2010 2020 2030
Figure III.2 shows that most of North Carolina’s population increase currently comes from in-state
births and domestic in-migration, as opposed to international immigration. As various
businesses and industries have relocated to North Carolina in the last decade, they have
brought a number of employees from other states with them. More recently, North Carolina
has experienced substantial in-migration of workers, largely Hispanic, in labor-intensive
industries such as manufacturing and agriculture. There is evidence that international in-migration
will continue to increase.
Figure III.2. Components of Population Change for North Carolina:
2000–2004 (in thousands)
(US Census Bureau)
494.7 505.8
-310
131.8 166.9
-400
-300
-200
-100
0
100
200
300
400
500
600
TOTAL
CHANGE
Births Deaths International
Migration
Internal
Migration
Because of the substantial in-migration to North Carolina, the State is becoming more racially
and ethnically diverse. Although from 1995 to 2004, North Carolina’s white population grew
the most numerically (527,000), the State’s Hispanic population had the second largest
numerical increase (418,000, up from 100,000 in 1995). Figure III.3 shows the percentage
population growth for various North Carolina racial and ethnic groups from 1995 to 2004.
Section III: Trends Affecting Higher Education in North Carolina 11
Figure III.3. Percentage Growth of North Carolina
Racial and Ethnic Groups: 1995–2004
(US Census Bureau)
18.7%
59.6%
132.4%
19.1%
418.0%
9.9%
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
TOTAL Am.
Indian
Asian Black Hispanic White
Also due to the significant in-migration that North Carolina is experiencing, the State is
projected to have a somewhat younger population in coming decades than national averages.
Figure III.4 shows state and national projected percentage changes for the younger than 18
and 65 and older age groups. North Carolina’s school age population (younger than 18)
percentage is projected to increase from less than the national average percentage to greater.
Although like all states, North Carolina’s 65 and older population will increase substantially,
its overall percentage will be well under the national average due to the growth of younger age
groups in the State.
Figure III.4. Percentage Change in North Carolina and US Population
by Age Groups: 2000–2030
(US Census Bureau)
24.4% 24.3% 25.2%
23.6%
12.0% 12.4%
17.8%
19.7%
25.7% 24.1%
12.4% 13.0%
0%
5%
10%
15%
20%
25%
30%
2000 2010 2030
NC < 18
US < 18
NC 65+
US 65+
The projections in Figure III.3 take on added significance when they are used to calculate the
“dependency ratio”—the ratio of working age adults compared to the school-age and
retirement-age segments of the State’s population. As Figure III.5 shows, the percentage of
Section III: Trends Affecting Higher Education in North Carolina 12
the “working age” state population (18-64) will decline from 63.6 percent in 2000 to 57 percent
in 2030.
Figure III.5. The “Dependency Ratio”: 2000–2030
(US Census Bureau)
24.4% 24.3% 25.2%
63.6% 63.3%
57.0%
12.0% 12.4%
17.8%
0%
10%
20%
30%
40%
50%
60%
70%
2000 2010 2030
Age < 18
Age 18-64
Age 65+
Different regions of North Carolina will have differential rates of growth, with urbanized areas
in the Piedmont or near interstate highways and coastal and mountain counties growing faster
than more rural counties. The NC State Demographer projects that several counties in eastern
North Carolina will actually decline in population during this decade. Although it has one of
the Nation’s fastest growing populations, North Carolina remains one of the Nation’s more rural
states. Unlike states where most of the population is clustered in several large urban centers,
North Carolina’s population is spread across the State on farms and in small towns as well as
in cities. This has implications for expanding access to higher education because educational
offerings cannot be focused on a few urban areas but must be made available to citizens
throughout the State.
B. Economic Trends
A changing state economy: North Carolina faces a critical challenge to revitalize its economic
infrastructure by developing a well-educated workforce that can compete internationally in the
modern knowledge economy. In 2001 North Carolina ranked eighth in the Nation in percent of
manufacturing employment, and from 1997 to 2001 the State ranked sixth in the increase in
hourly earnings for manufacturing production workers. The percentage of the working age
population in the labor force (66.5 percent) is comparable to the national average.
In recent decades, progress such as this enabled the State to surpass the average per capita
income of the Southeast region of the US A shift, however, has occurred in the State’s
economy away from a manufacturing and agricultural base to one that requires a workforce
educated to participate in the more knowledge-intensive economic sectors such as finance,
government, and information technology. North Carolina has made progress in moving into
new economic activities such as biotechnology, information technology, and banking and
finance, although it needs to make additional progress in these high tech, high wage
industries.
North Carolina employment and income trends: North Carolina has been strong as a
manufacturing state, but some of these industries have declined as a result of global changes
in production and trade barriers. As the map in Figure III.6 illustrates, economic changes
Section III: Trends Affecting Higher Education in North Carolina 13
during the first half of this decade hit North Carolina particularly hard. Textile and furniture
plant closings left a large number of North Carolinians unemployed or employed in lower
paying jobs.
Figure III.6. Manufacturing Plant Closings: 2003 & 2004
(NC Employment Security Commission; map by UNCC Dept. of Geography & Earth Sciences from NC Atlas Revisited)
Figure III.7 shows the shifts in employment in various North Carolina employment sectors
from 1997 to 2004.
Figure III.7. Employment Trends in Seven Economic Sectors: 1997–2004
(US Bureau of Labor Statistics; graph from NC Atlas Revisited)
Figure III.8 shows that North Carolina’s employment growth exceeded the national average but
that employment losses also exceeded the national average during the first years of this
decade. More recently the State’s employment growth has again reached the national average.
Section III: Trends Affecting Higher Education in North Carolina 14
Figure III.8. State and National Employment Changes: 1997-98 to 2003-04
(US Bureau of Labor Statistics; graph by UNCC Dept. of Geography & Earth Sciences from NC Atlas Revisited)
The impact of these economic shifts is shown in the slowed growth of North Carolina’s gross
state product (Figure III.9) and in the slowed growth of the State’s per capita income (Figure
III.10). As Figure III.8 shows, North Carolina’s gross state product growth (total value of all
goods and services produced) exceeded both regional and national averages in the early part of
this decade but fell behind in more recent years. This has had an impact on the State’s
average per capita income, which has fallen further below the national average in recent years
(Figure III.9).
Figure III.9. Percent Growth in US, Southeast, and NC Gross State Product: 2001–2004
(US Bureau of Economic Analysis)
0.9%
1.8%
2.8%
4.2%
1.6%
2.0%
3.2%
4.1%
2.0%
2.5%
3.1%
4.0%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
2001 2002 2003 2004
US
SE
NC
Section III: Trends Affecting Higher Education in North Carolina 15
Figure III.10. NC and US Per Capita Income Average: 1980–2003
(US Bureau of Economic Analysis)
Changing economic conditions have affected various areas of the State differently.
Figure III.11 shows the differing levels of unemployment in North Carolina counties, which
have been affected in part by the plant closings noted above.
Figure III.11. Unemployment Rates in North Carolina Counties: April 2004
(NC Employment Security Commission; graph by UNCC Dept. of Geography & Earth Sciences from NC Atlas Revisited)
North Carolina’s industries: Industrial employment data from the Employment Security
Commission of NC for the 1990-2004 period illustrate both recent declines in manufacturing
but also the considerable diversification that has taken place in this sector of the economy.
For example, the textiles, apparel and furniture industries lost a combined total of over
214,000 jobs during the period while all other manufacturing industries loss just 27,000 jobs.
Increases were led by the chemicals, plastics/rubber, fabricated metals, and transportation
equipment industries, which together added over 16,000 jobs. For the most part, these
$8,247
$17,367
$27,194 $28,071
$10,183
$19,584
$29,676
$31,472
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
1980 1990 2000 2003
NC
US
Section III: Trends Affecting Higher Education in North Carolina 16
industries paid average annual wages that were close to or in excess of the $37,443 average
annual wage paid to all manufacturing employees in 2004.
The State’s highest wage industry, computers and electronics products, the fourth largest
industrial employer, recorded a 24 percent employment drop, but that rate was less than that
for all industries. Diversification has had a substantial geographic component to it. For
example, 1n 2002, 63 per cent of all jobs in chemicals were in the Raleigh-Durham, Charlotte-
Gastonia and Greensboro/Winston-Salem/High Point areas and 79 percent of jobs in the
computer and related electronics industry were found in these same three urban areas, led by
Raleigh-Durham. Reflecting this, a national publication, "Business Facilities: The Location
Advisor," ranked Raleigh-Durham fourth and Charlotte 11th highest among US high-tech cities
in 2003. The following two tables present data compiled by the Duke University Markets and
Management Studies Program:
Table III.1. 2003 Industry Value for Selected Industries in North Carolina
(US Census Bureau)
Industry
2003
NC Rank in US
Percent of
Total US Value
Value in
Billion Dollars
1997-2003
Growth
Biotechnology 2 12.3% $18.0 35.7%
Banking/Finance 10 3.0% $42.1 88.7%
Information Tech 16 2.0% $22.6 -11.1%
Table III.2. Selected North Carolina Industries with National Rank in Employment, Average Wage,
and Five-Year Wage and Employment Change: 2003
(US Bureau of Labor Statistics, US Census Bureau)
Industry & NC
2003 Employment
Rank
2003 Average
NC Wage
NC Wage Change
1993-2003
NC Employment
Change 1998-
2003
Tobacco (1) $54,903 12.2% -17.8%
Textiles/Apparel (2) $28,757 15.5% -44.4%
Furniture (2) $27,656 10.5% -21.2%
Biotechnology (6) $70,666 31.6% 18.3%
Hog Farming (7) $26,265 4.2% 16.0%
Banking/Finance (11) $61,854 54.7% 10.6%
Information Tech. (14) $65,733 28.2% -11.2%
Military bases in North Carolina (Camp Lejeune Marine Corps Base & New River Air Station,
Cherry Point Marine Corps Air Station, Fort Bragg Army Base & Pope Air Force Base, Seymour
Johnson Air Force Base, and Coast Guard Air Station) and Department of Defense contracts
also contribute substantially to the State’s economy. A 2004 study by East Carolina
University’s Regional Development Services found that the contribution of all aspects of
military spending exceeds six percent of the State’s gross state product—$18 billion. These
expenditures include military and civilian personnel payrolls, contractual expenditures, retiree
and veteran benefits, and operations and capital expenditures by bases. Approximately 70
percent of that amount is contributed by NC’s military bases through operations, associated
purchases, and military and civilian payroll. UNC has greatly expanded its educational
offerings at NC military bases in recent years and a number of initiatives are underway to
coordinate UNC research expertise with Department of Defense priorities.
Section III: Trends Affecting Higher Education in North Carolina 17
The higher education response: To enable North Carolina to achieve the greatest economic
growth and prosperity possible for the workforce it has available, the State must capitalize on
the benefits possible through higher education. Figure III.12 shows the average earnings for
individuals in the US according to their level of educational attainment.
Figure III.12. Average Annual Income of Adults 25 or Older in the US by Level of Educational
Attainment: 2003
(US Census Bureau)
The US Bureau of Labor Statistics (BLS) reports that most high-paying occupations will require
a college degree. Employment is projected by the BLS to increase in many of these
occupations, with the occupations projected to have the highest growth presented in
Figure III.13.
Figure III.13. High Growth Occupations Requiring a
Bachelor’s or Graduate Degree Projected 2002–2012 (thousands)
(US Bureau of Labor Statistics)
0 200 400 600 800
Management analysts
Computer software
Secondary teachers
Computer analysts
Accountants
Elementary teachers
Operations managers
Postsec. teachers
UNC institutions serve a vital role in helping to develop clusters of innovation and the well-educated
workers needed to stimulate the economic growth of each region. UNC research and
public service programs not only help to support university activities during this era of
constrained state resources, but they also provide the impetus and expertise needed to foster
$22,200 $30,100
$37,500
$53,400
$62,800
$88,600
$115,600
$19,600
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
< 9th
< 12th
High School
Associate
Bachelors
Masters
Doctoral
Professional
Section III: Trends Affecting North Carolina Higher Education 18
new initiatives in various regions of the State. The Golden Leaf Foundation grant for the
Bioprocessing Training and Education Initiative is a recent example of this contribution to
communities across the State. Another example of UNC’s involvement in the State’s economic
revitalization and workforce development is the collaboration with Dole Foods to develop a
biotechnology research and development campus on the site of the former Pillowtex plant in
Kannapolis. The proposed facility would focus on nutrition and agricultural research.
C. Health and Well-being Issues
North Carolina faces substantial challenges on a number of indicators that relate to the well-being
of the State’s citizens. Kids Count 2005, an annual study funded by the Annie E. Casey
Foundation, documents a variety of health and well-being indicators by state. Table III.3
compares North Carolina data to national averages on a number of indicators of child well-being
where the State needs to improve.
Table III.3. Indicators of Child Well-Being for NC and US: 1990 and 2004
(Annie E. Casey Foundation, 2005)
Trend Data
1990 2004
Percent low birth-weight babies (2002) NC 8.0% 9.0%
US 7.0% 7.8%
Infant mortality rate (deaths per 1,000 live births, 2002) NC 10.6 8.2
US 9.2 7.0
Child death rate (deaths per 100,000 children ages 1-14, 2002) NC 31 23
US 31 21
Rate of teen deaths rate by accident, homicide, and suicide (deaths per NC 71 75
100,000 teens ages 15-19, 2002) US 71 68
Teen birth rate (births per 1,000 females ages 15-17, 2002) NC 45 29
US 37 23
Percent of teens who are high school dropouts (ages 16-19) NC 14% 9%
US 10% 8%
Percent of teens not attending school and not working (ages 16-19) NC 10% 10%
US 10% 9%
Percent of children living with parents who do not have full-time, year- NC 27% 36%
round employment US 30% 33%
Percent of children in poverty (data reflect poverty in previous year) NC 18% 22%
US 20% 18%
Percent of families with children headed by a single parent NC 23% 33%
US 24% 30%
Geographic disparities in health and well-being: There are significant geographical as well as
racial disparities in the poverty and health-related problems that face North Carolina’s citizens.
These differences must be considered as The University extends its educational offerings and
services to all areas of the State. Figure III.14, Figure III.15, and Figure III.16 illustrate the
geographical disparities in poverty and health-related problems that must be addressed.
Section III: Trends Affecting North Carolina Higher Education 19
Figure III.14. Percent of North Carolina’s Population Below the Poverty Level: 2000
(US Census Bureau, map by UNCC Dept. of Geography & Earth Sciences)
Figure III.15. North Carolina Death Rates from Cancer: 1997–2001
(NC Dept. of Health & Human Services, map by UNCC Dept. of Geography & Earth Sciences)
Figure III.16. North Carolina Death Rates from Heart Disease: 1999–2001
(NC Dept. of Health & Human Services, map by UNCC Dept. of Geography & Earth Sciences)
Section III: Trends Affecting North Carolina Higher Education 20
UNC institutions are engaged in a number of initiatives to produce the health care
professionals needed to address North Carolina’s health challenges. As one example, UNC
representatives served on the Task Force on the North Carolina Nursing Workforce with other
agency representatives to address the possibility of a nursing workforce shortage. In 2004 the
Task Force produced a number of recommendations to be addressed by UNC and other
educational institutions, the NC General Assembly, employers, and the nursing community.
State education trends
Student academic performance: While North Carolina’s students in public K-12 grades have
made impressive gains in academic achievement scores over the last decade, additional
progress remains to be made. Table III.4 provides the percentages of NC fourth and eight
grades scoring at various achievement levels of the National Assessment of Educational
Progress (NAEP) in reading, mathematics, science and writing. The State’s mathematics
performance held steady in 2005 and average scores at both grades four and eight were higher
than the national average. North Carolina has made the greatest mathematics gains in the
Nation since state NAEP testing began. North Carolina’s reading scores at both grade levels
have declined slightly in recent years.
Table III.4. Most Recent Results of North Carolina Student Performance on
National Assessment of Educational Progress Scores
(National Center for Educational Statistics)
Below Basic Basic Proficient Advanced
Reading Grade 4 (2005) 38% 32% 23% 7%
Reading Grade 8 (2005) 31% 42% 25% 2%
Mathematics Grade 4 (2005) 17% 43% 33% 7%
Mathematics Grade 8 (2005) 28% 40% 25% 7%
Science Grade 4 (2000) 36% 40% 22% 2%
Science Grade 8 (2000) 44% 30% 23% 3%
Writing Grade 4 (2002) 12% 56% 28% 4%
Writing Grade 8 (2002) 13% 53% 31% 3%
Teacher shortages: North Carolina continues to face challenges in public education such as
ensuring an adequate supply of qualified teachers in certain regions of the State and in high-need
areas such as science, math, middle grades, and special education. This results in a
heavier dependence on teachers from out of state and in many classrooms lacking a fully
qualified teacher. High teacher turnover results in an unstable learning environment in which
many new teachers to not have adequate guidance in their early years. Recent experience
suggests that North Carolina needs 10,000 to 12,000 new teachers each year based on a
number of factors. It is estimated that North Carolina will need more than 94,000 teachers in
2009-10 and more than 100,000 in 2014-15 compared to the approximately 90,000 employed
in 2005-06.
To address this challenge, in 2004 UNC General Administration worked with campus education
deans and chief academic officers to develop targets for graduates of teacher education
programs resulting in a projected 60.4 percent increase of graduates by 2009-10 over the base
year of 2002-03. A five-year plan was also developed to increase the number of lateral entry
teachers by 69 percent over the 2002-03 base year by 2009-10. If the numbers of traditional
graduates and alternative licensure completers are combined, UNC will be producing 5,908
Section III: Trends Affecting North Carolina Higher Education 21
potential teachers by 2009-10 and 7,208 by 2014-15. Specific targets were also agreed upon
in the high need areas of math, science, middle grades, and exceptional children. UNC is
currently working with the NC Community College System to develop articulation online
teacher education programs in a number of high need areas.
Educational attainment: North Carolina continues to increase in the percentage of its citizens
who have achieved degrees at the high school and college levels. It has surpassed the high
school and college attainment percentages of states in the 16-state Southern Regional
Education Board (SREB) region, but as Figure III.17 and Figure III.18 depict, the State must
still make progress. In recent years the State has lost ground in reaching the national average
for education attainment for both high school and college.
Figure III.17. High School Attainment in North Carolina
Compared to the National Average: 1970–2004
(US Census Bureau)
Figure III.18. College Attainment in North Carolina
Compared to the National Average: 1970–2004
(US Census Bureau)
52.3%
66.5%
75.2%
80.5% 84.1% 85.2%
38.5%
54.8%
70.0%
78.1% 80.1% 80.9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
High
School
1970
High
School
1980
High
School
1990
High
School
2000
High
School
2002
High
School
2004
US
NC
10.7%
16.2%
20.3%
24.4%
26.7% 27.7%
22.5% 22.4% 23.4%
17.4%
13.2%
8.5%
0%
5%
10%
15%
20%
25%
30%
College
1970
College
1980
College
1990
College
2000
College
2002
College
2004
US
NC
Section III: Trends Affecting Higher Education in North Carolina 22
Additionally, as shown in Figure III.19, North Carolina must make progress in reducing the
racial and ethnic disparity in educational attainment rates.
Figure III.19. North Carolina Educational Attainment by
Racial/Ethnic Group: 2000–2004
(US Census Bureau
More encouraging is the fact that by fall 2002 almost identical percentages of white, African
American, and Native American recent high school graduates enrolled at UNC institutions
(Figure III.20). This suggests that over time, some educational attainment disparities in the
State may be reduced or eliminated.
Figure III.20. Percent Enrollment of NC High School Graduates in UNC Institutions
By Race and Ethnic Group: Fall 2002 and 2004
(UNC General Administration)
29.4% 29.8%
41.0%
22.0%
33.0%
43.5%
19.9%
29.3%
29.5% 29.6%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
African-
American
American
Indian
Asian Hispanic White
2002
2004
Increasing enrollments at UNC institutions: There are several reasons why enrollments at
UNC institutions will continue to increase for the remainder of this decade. The annual college
72.1%
76.5%
18.5%
41.4%
46.8%
11.3% 8.0%
83.3% 84.8%
26.0%
14.7%
25.7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
High School
2000
High School
2004
Bachelor's
2000
Bachelor's
2004
African-American
Hispanic
White
Section III: Trends Affecting Higher Education in North Carolina 23
going rate for all North Carolina high school graduates enrolling at UNC institutions has
increased over the last decade from 28 percent to over 31 percent (Figure III.21).
Figure III.21. Annual Percentage of Recent North Carolina High School Graduates
Enrolling in UNC Institutions: 1994–2004
(UNC General Administration)
The number of NC high school graduates will continue to increase during this decade followed
by a sharp increase during the latter years of the next decade (Figure III.22). UNC General
Administration projects that many of these new students will be Hispanic.
Figure III.22. Projected North Carolina High School Graduates: 2005–2020
(UNC General Administration)
28.5%
30.4%
31.1%
31.4%
32.0%
31.3%
31.9%
31.4% 31.2%
31.5%
28.1%
26%
27%
28%
29%
30%
31%
32%
33%
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
60873
60203
57446
59248
56741
57861
59020
59718
61811
62996
65621
69338
71853
73557
75855
77614
80215
81456
82433
81410
83391
82765
84278
86989
98279
105481
116666
120522
121448
0
20000
40000
60000
80000
100000
120000
140000
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
School Year
Graduates
Actual Projected
Section III: Trends Affecting Higher Education in North Carolina 24
Another reason for anticipated ongoing growth in UNC enrollments is the success of the
articulation agreement with North Carolina community colleges, which is bringing increased
numbers of community college transfer students to UNC institutions (Figure III.23).
Figure III.23. NC Community College Transfers to UNC Institutions
for Academic Years 1995-96 to 2004–05
(UNC General Administration)
Finally, UNC enrollments have increased in recent years and are likely to continue increasing
due to distance education enrollments that have increased dramatically since 1998, when the
NC General Assembly first funded UNC distance education. In the academic year 2004-05,
distance education course offerings increased to over 4,000 and over 33,000 individuals took at
least one distance education course. By fall 2005, UNC institutions were offering more than 80
online degree programs. These distance programs are reaching a non-traditional university
population—over 78 percent of distance education degree-seeking students are age 26 or older,
whereas only approximately 22 percent of on-campus students are in that older age range.
D. The University’s Response to Demographic, Economic, Health and Well-being,
and Education Trends
The primary challenge for the University during the remainder of this decade is to provide
leadership in helping to ensure the prosperity and well-being of all individuals and regions of
the State. This must be accomplished by increasing educational access and attainment and by
partnering with other sectors to renew the State’s economic base in an era of constrained fiscal
resources. The University will increase access and educational attainment by continuing to
emphasize higher education opportunities for diverse and low-income students through a
variety of means. Special attention will be given to growing enrollments at focused growth
institutions and to assuring affordability through appropriate tuition and fee rates and
expansion of need-based financial aid. The University will continue to collaborate with the
North Carolina Community College System to provide baccalaureate completion programs at
UNC campuses, at community college campuses, and online.
The University will ensure the highest quality of educational preparation for the State’s citizens
by continuing to monitor carefully the State’s educational needs—particularly in response to
5,420 5,586 5,737 5,528 5,588
6,081 6,363
6,877
7,381
7,880
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
2001/02
2002/03
2003/04
2004/05
Section III: Trends Affecting Higher Education in North Carolina 25
the changing needs of the State’s economy. Adequate and appropriate support for the
University’s faculty and libraries must be achieved in order to accomplish this goal. The
University will continue to implement the facilities bond program in an efficient manner to
accommodate its growing enrollments. A comprehensive educational response to the State’s
needs is required, and the University will continue to support K-12 education by working to
expand the supply of well-qualified and diverse teachers and by providing high quality
professional development for all teachers and administrators. The University will work with the
NC Department of Public Instructions and local school systems to ensure that students are
well prepared to progress to higher education.
The University will continue to pursue collaborative initiatives with industry, government, and
other partners to stimulate economic development and creation of high quality jobs and work
environments. UNC will make every effort to sustain its outstanding accomplishments in
obtaining sponsored funding for public service, research, and technology transfer activities that
are responsive to the State’s needs. UNC recognizes the importance of the global economy to
North Carolina’s economic vitality, and expanded opportunities will be sought for student and
faculty exchanges and for ways to expand the knowledge of the State’s citizens about
international issues. Foreign language instruction will be crucial for preparation of K-12 and
university students to work effectively in an increasingly interconnected world. The University
will continue to develop and implement information systems and applications that ensure an
attentive stewardship of the State’s resources. Many of the goals noted above can only be
achieved through the effective and efficient use of information technology.
Additional information on the University’s response to North Carolina’s higher education needs
is provided in the following sections on the University’s and its constituent institutions’
missions, strategic directions adopted by the UNC Board of Governors, the UNC enrollment
plan, and specific topics such as diversity, technology infrastructure, facilities, and economic
development.
26
IV. Priorities and Strategic Directions
A. Priorities of the University of North Carolina
In January 2006 the President initiated a planning process with the Chancellors to arrive at ten
to twelve priorities for the University of North Carolina. This process was initiated using the
Strategic Directions approved by the Board of Governors in November 2005, but was open to the
inclusion of other items. The preamble and twelve priorities are the results of this process and
were recommended by the President and approved by the Board of Governors in May 2006.
Preamble
Provide access to the highest quality, internationally competitive education for all the citizens of
North Carolina through sixteen intentionally distinctive constituent institutions;
Increase the knowledge base and competitive position of the State through extensive research
and active engagement, including targeted workforce preparation, innovative economic
development programs, and transfer of knowledge and technology; and
Enrich the quality of life in North Carolina by providing opportunities for cultural activities,
lifelong learning, and enhancement of citizenship.
Priorities
1. Student Success and an Outstanding Faculty. At the end of the process these two
priorities were tied for the top rank. Since each is essential to a university they are the top
two priorities.
Student Success: Access, Retention, Graduation, and Affordability. Promote and
improve access, retention, and graduation levels, with special attention to traditionally
underrepresented segments of North Carolina’s population and the availability of distance
education and online degree programs. Ensure affordability for North Carolina residents by
keeping tuition and fees as low as practicable, while continuing to expand need-based
financial aid resources for low-income students.
An Outstanding Faculty. Attract and retain exceptional faculty/scholars through
nationally competitive compensation and benefits, appropriate support and faculty
development for instructional and scholarly activities (including startup funds to initiate
research programs), effective policies and procedures reflecting best practices in faculty
evaluation and governance, and recognition and rewards for outstanding performance in all
areas of University priority.
3. More and Better Teachers; Improved Schools. Expand efforts in teacher preparation to
increase the supply of well-qualified and more diverse teachers, especially in high-need
licensure areas, to serve the rapidly growing needs of North Carolina’s schools—using both
traditional and innovative approaches (such as incentives to students, lateral-entry
programs, mid-career opportunities, e-learning and collaborative 2+2 programs with North
Carolina Community Colleges)—while ensuring that the quality of teacher preparation is
maintained at the highest possible level. Continue efforts to develop outstanding
administrator preparation and development programs. Provide support and leadership for
improving K-12 schools.
4. Research. Promote creative activities and basic and applied research for the discovery,
dissemination, and application of new knowledge as a fundamental mission of the
University. Continue to expand the external sponsorship of UNC research and other
Section IV. Priorities and Strategic Directions 27
creative activities for students and faculty. Ensure that a supportive environment with
ample resources exists to promote scholarship in the sciences, humanities, social sciences,
and the arts.
5. Quality Academic Programs and Support Services. Ensure the quality of academic
programs both on-campus and off-campus through regular review and assessment of
degree programs and instruction, and through assessment of the quality of and student
access to academic resources and services (e.g., academic advising, laboratories, IT) and
student support services (e.g., admissions, financial aid, registrar, retention, counseling)
that promote student development, retention, and graduation. Ensure appropriate and
adequate library resources.
6. Regional and State-wide Economic Development. Respond to and monitor the economic
needs and directions of the State, paying particular attention to the State’s economic
development regions. Facilitate collaborative research and partnerships with industry,
government, and other entities to advance strategic priorities of great importance to North
Carolina. Enhance communities’ attractiveness to business and industry with a rich
culture in the arts and humanities, good health care, and strong schools.
7. Adequate Facilities. Ensure the timely and cost-effective construction and renovation of
facilities to accommodate current students and anticipated enrollment growth with
efficiency, fiscal accountability, and attention to utilizing historically underrepresented
businesses.
8. Health Care. Continue to develop academic programs as well as collaborative strategies in
support of critical areas of allied health, nursing, medicine, dentistry, pharmacy, and
related fields in response to the needs of the State for health care providers.
9. Information Technology. Use the power of information technology guided by strategic IT
planning for more effective educational, administrative, and business practices that will
enable the University to respond to the competitive global environment of the 21st Century.
10. Internationalization. Support and expand student and faculty participation and exchange
in international study by strategically expanding agreements that provide opportunities for
UNC students and faculty, including underrepresented groups, to study abroad and for
international students to study on UNC campuses.
11. Partnership with Community Colleges. Strengthen partnerships with community
colleges to ensure continuous improvement in the academic achievement of North
Carolina’s students, to promote student success in higher education, and to help close gaps
in student achievement.
12. Private Fundraising. Expand private fundraising to supplement the public sources of
revenue for the University.
Section IV. Priorities and Strategic Directions 28
B. Strategic Directions for the Planning Period 2006-2011
The Board of Governors endorses seven interrelated strategic directions to pursue in the
fulfillment of its mission during this planning period. In January 2002 a new strategic
direction—Internationalization—was added to reflect the University of North Carolina’s
commitment to prepare students for an increasingly global society. A new strategic direction is
added—Economic Transformation—to reflect the growing and essential contribution UNC makes
to North Carolina’s economy. The order in which the strategic directions are presented does not
represent prioritization by the Board; however, Access and Student Success is the Board’s
highest priority. Each one is accompanied by implementation strategies, which have been
revised to reflect new priorities or new emphases. The leadership of each campus is to align
campus planning efforts to these strategic directions adopted by the Board of Governors.
Access and Student Success: Ensure affordability and access to higher education
for all who qualify, embrace a vision of lifelong learning, and promote student
success.
• Promote and improve access, retention, and graduation levels, with special attention to
traditionally underrepresented segments of North Carolina’s population. In particular,
actively prepare for the changing demographics of North Carolina’s future high school
graduates by developing strategies to support the first generation college student across
these diverse populations, in accord with the diversity plan adopted by the Board of
Governors.
• Ensure affordability for North Carolina residents by keeping tuition and fees as low as
practicable, while continuing to expand need-based financial aid resources for low-income
students. Promote a system of affordability benchmarks to measure the
success of the State and the University in providing access to all North Carolina
students.
• Assist North Carolina in reaching its long-term goal of closing the gap between the state
average and the national average with respect to the percent of residents who have
earned a bachelor’s degree or higher, with no significant differences between the
educational attainment of majority and minority populations.
• Offer e-learning courses and programs, deliver academic and student services to
students wherever they are, promote interinstitutional collaboration in course and
program delivery, and foster joint degree programs between and among campuses.
• Implement and monitor annually the 10-year enrollment plan adopted by the Board of
Governors in response to the anticipated surge in enrollments, with special attention to
efforts to increase enrollments at focused-growth institutions. Monitor participation
and the size of the freshman class in relation to the number of high school graduates in
North Carolina.
• Maximize the capacity of UNC institutions to serve anticipated enrollment growth, as
well as the need for lifelong learning, through more efficient use of on-campus facilities,
increased summer school enrollment, expanded use of off-campus instruction sites,
new academic programs, and e-learning for both non-traditional and campus-based
students.
• Provide a safe, secure, hospitable, and non-discriminatory environment for all who
study and work in UNC institutions.
• Ensure the timely and cost-effective construction and renovation of facilities to
accommodate current students and anticipated enrollment growth.
Section IV. Priorities and Strategic Directions 29
• Facilitate educational access through the effective use of information technology to
provide information on educational opportunities (e.g., CFNC and Pathways) and
support initiatives to complement the awareness of the need for college access with
interventions programs (e.g., GEAR UP and TRIO).
• Continue to promote collaboration with community colleges through initiatives such as
the North Carolina Comprehensive Transfer Articulation Agreement; the Transfer
Assured Admission Program, delivery of baccalaureate completion and graduate
programs at community college sites and online, and enrollment planning.
• Ensure that the Expected Family Contribution (EFC) for the neediest students is not
exceeded even when state or campus-based increases are initiated.
Intellectual Capital Formation: Through high-quality and relevant
undergraduate, graduate, and professional programs, develop an educated
citizenry that will enable North Carolina to flourish.
• Develop strategies to assess and respond in a timely manner to the citizen’s and the
State’s educational needs, including the need for lifelong learning for both career
development and personal enrichment. Continue to be responsive to the changing
needs of business and industry in North Carolina, such as occurred with the
biomanufacturing industry.
• Ensure the quality of academic programs both on-campus and off-campus through
regular review and assessment of degree programs and instruction and through
assessment of the quality of and student access to academic resources and services
(e.g., academic advising, laboratories, IT) and student support services (e.g.,
admissions, financial aid, registrar, retention, counseling) that promote student
development, retention, and graduation.
• Attract and retain exceptional faculty/scholars through nationally competitive
compensation and benefits, appropriate support and faculty development for
instructional and scholarly activities (including startup funds to initiate research
programs), effective policies and procedures reflecting best practices in faculty
evaluation and governance, and recognition and rewards for outstanding performance
in all areas of University priority. Continue to seek expansion of the endowed
professorship program.
• Ensure appropriate and adequate library resources to support undergraduate and
graduate programs (including distance learning, online, and collaborative degree
programs), teaching, scholarship, creativity, and research.
• Continue to develop academic programs as well as collaborative strategies in support of
critical areas of allied health, nursing, medicine, and related fields in response to the
needs of the State for health care providers.
• Strengthen undergraduates’ knowledge and academic skill development to improve their
chances of being successful in the workplace, in postgraduate studies, and as leaders in
communities and society.
• Expand private fundraising to supplement the public sources of revenue for the
University.
• Ensure that the facilities and campus environment necessary to support educational
excellence are available through the implementation of the Board of Governors’ capital
plan. Carry out the bond program with efficiency and fiscal accountability and with
attention to utilizing historically underrepresented businesses.
Section IV. Priorities and Strategic Directions 30
K-16 Education: Continue to propose and support initiatives to serve the needs
of the State’s public schools.
• Expand efforts in teacher preparation to increase the supply of well-qualified and more
diverse teachers, especially in high-need licensure areas, to serve the rapidly growing
needs of North Carolina’s schools—using both traditional and innovative approaches
(such as incentives to students, lateral-entry programs, mid-career opportunities, e-learning
and collaborative 2+2 programs with North Carolina Community Colleges)—
while ensuring that the quality of teacher preparation is maintained at the highest
possible level.
• Continue efforts to develop outstanding teacher and administrator preparation and
development programs that include strong discipline content, pedagogy, and clinical
training (i.e., integration of Arts and Sciences, accreditation of programs and
assessments) to ensure high-quality teachers, administrators, and other school
personnel who can contribute to closing achievement gaps and improving student
achievement.
• Expand our commitment to the development of comprehensive, high-quality programs
of continuing professional development of K-12 school personnel from their initial
induction to retirement.
• Strengthen partnerships with K-12 schools and community colleges in the development
of programs, curricula, and instructional materials—including materials that advance
the use of information technology—to ensure continuous improvement in the academic
achievement of North Carolina’s students, to promote student success in higher
education, and to help close gaps in student achievement.
• Support and strengthen both research and public service programs in the UNC Center
for School Leadership Development and in UNC schools, colleges, and departments of
education.
• Partner in the State’s initiatives to redesign and improve high schools in North Carolina.
Creation, Transfer, and Application of Knowledge: Expand the frontiers of
knowledge through innovation and scholarly activities, basic and applied
research, technology transfer, outreach, and public service activities.
• Promote creative activities and basic and applied research for the discovery,
dissemination, and application of new knowledge as a fundamental mission of the
University.
• Continue to expand the external sponsorship of UNC research and other creative
activities for students and faculty. Ensure that a supportive environment with ample
resources exists to promote scholarship in the sciences, humanities, social sciences,
and arts.
• Establish strong collaborative relationships among UNC institutions to pursue more
opportunities to jointly attract external funding for scholarly activities.
• Facilitate collaborative research and partnerships with industry, government, and other
entities to advance strategic priorities of great importance to North Carolina.
• Encourage technology transfer and the commercialization of UNC’s unique research
discoveries consistent with the University’s mission, values, and policies.
• Engage industries, government, and communities state-wide through public service and
outreach programs (such as Area Health Education Centers, the health care system, the
Section IV. Priorities and Strategic Directions 31
NC Cooperative Extension Service, the Industrial Extension Service, the Arboretum, and
campus-based centers and institutes) to help put research-based knowledge to work.
• Support UNC-TV’s expanding outreach to stimulate lifelong learning, to inform citizens
about major public concerns, and to promote greater understanding of cultural, artistic,
social, political, and economic issues in our State.
Economic Transformation: As fundamental to its mission, strengthen and
extend the University’s contribution to transforming the economy of North
Carolina through basic and applied research, innovation and creativity, transfer
of new knowledge, application of best practices, and high-quality degree
programs.
• Respond to and monitor the economic needs and directions of the State, paying
particular attention to the differing needs of the State’s economic development regions.
• Monitor the needs of established and emerging businesses in North Carolina. Track
changing and emerging employment needs of the economy, especially in the knowledge-worker
sector, and develop the capacity to meet those needs.
• Expand the use of employment and economic development trends in the process for
academic assessment and approval of new degree programs.
• Maximize flexibility in the offering of degree programs and continuing education by
utilizing technology and creative scheduling to optimize access for those with work or
family responsibilities or geographical inaccessibility.
• Continue to enhance the University and community colleges' cooperative activities in
service to the State and its citizens. Develop career paths for selected fields in response
to individual and state needs.
• Cultivate the conditions for the emergence and success of startup companies in North
Carolina by streamlining tech transfer processes; promoting incubators and business
accelerators; recognizing and rewarding innovation; and establishing ways to quickly
disseminate new knowledge, technologies, and innovations to benefit businesses large
and small.
• Promote increased state support for basic and applied research especially in science
and technology.
• Amplify activities and services throughout the State of Cooperative Extension, Industrial
Extension, and the Small Business and Technology Development Centers to enhance
business competitiveness.
• Support the continuing development of millennial campuses and industry partnerships
throughout the University. Promote the development of unique facilities for applied
technologies to serve the needs of small and entrepreneurial businesses.
• Promote and reward entrepreneurial and leadership activities and capabilities
throughout the University.
• Identify additional segments or clusters of the economy for sustained, targeted
cooperative projects similar to the developments in the
biomanufacturing/pharmaceutical industry.
• Facilitate the provision of information about UNC for the state and regional recruiting
processes for bringing or retaining business and industry.
• Foster close working relations with the military nationally and in North Carolina.
Section IV. Priorities and Strategic Directions 32
• Enhance communities’ attractiveness to business and industry with a rich culture in
the arts and humanities, good health care, and strong schools. The University has a
special responsibility in each of these areas to serve the State and to expand and
improve these resources in each area of the State.
• Cooperate with all segments of the North Carolina community both responding to
leadership in other sectors and demonstrating leadership to transform the economy of
North Carolina.
Internationalization: Promote an international perspective throughout the
University community to prepare citizens to become leaders in a multi-ethnic
and global society
• Support and expand student participation in international study by
− Expanding participation in the UNC Exchange Program,
− Strategically expanding system-wide agreements that provide opportunities for UNC
students to study abroad and for international students to study on UNC campuses,
− Supporting the institutional agreements of the constituent institutions that provide for
international study and exchange by UNC students, and
− Increasing participation by student populations traditionally underrepresented in
student exchange and study abroad.
• Use technology to exchange knowledge and ideas and to make UNC academic programs
available across national boundaries.
• Use the resources of the University to expand the knowledge of North Carolina’s citizens
about the changing demographics of the State and the Nation.
• Expand the presence of international students and faculty on our campuses.
• Working with business, state and federal government, and international partners, tap
the intellectual resources of UNC faculty, staff, and alumni to address global political,
social, scientific, and economic issues with the potential to enhance North Carolina’s
global competitiveness.
• Support research initiatives that involve UNC and international students and faculty in
addressing issues of state, national, and international importance that benefit North
Carolina and its citizens.
• Expand courses and programs that enhance students’ knowledge of the world,
including foreign language instruction.
• Through North Carolina in the World and other programs, support the public schools in
expanding international understanding among teachers and students.
Information and Knowledge Management: Use the power of information
technology guided by strategic IT planning for more effective educational,
administrative, and business practices that will enable the University to respond
to the competitive global environment of the 21st century.
• Expand campus teaching and learning with technology (TLT) audiences beyond faculty
to include librarians, instructional technologists, academic administrators, and staff
members. Continue expansion of the professional developmental portal. Align TLT
activities with e-learning strategies.
Section IV. Priorities and Strategic Directions 33
• Implement coordinated technology platforms and services for e-learning both off-campus
and in traditional classrooms. Develop and market existing UNC e-learning
programs and courses. Develop policies and standards for coordinated offerings. Align
support services with e-learning strategies.
• Create a UNC-wide data warehouse to simplify UNC-wide data collection, improve data
retention, and provide more efficient and effective reporting capabilities.
• Implement integrated, web-based administrative information systems to support
finance, human resources, financial aid, advancement, and student services
applications, including those for prospective students and alumni.
• Implement a more robust network and computing infrastructure. Enhance user
support and training. Expand and enhance inter-campus and inter-educational sector
networking, distributed and grid computing, data storage, and information exchange.
• Identify and implement baseline standards for computer security and privacy that are
consistent with or exceed industry best practices.
• Develop an IT management policy framework for acquiring, managing, and
implementing efficient and effective IT on UNC campuses. Streamline administrative
processes through applications such as online purchasing and increasing managerial
flexibility in conducting the affairs of the University and its constituent institutions in
areas of classification and acquisition of property and technology.
• Increase the capacity of UNC General Administration to sponsor strategic initiatives in
areas such as research computing, alumni and public relations, fundraising and
development, and innovative web applications and services.
• Improve the ability of UNC General Administration to collect, process, and analyze UNC-wide
data for accountability and assessment using new tools to improve administrative
efficiencies, teaching and learning effectiveness, and the University’s impact on the
State’s economy.
Achieving the Strategic Directions
Benchmarking the UNC Strategic Directions involves establishing a set of topics for determining
whether they are being achieved. For most of these topics some trend data will be available or
can be developed. More specific measures will be established based on the availability of trend
data. In some areas goals will be developed and agreed to. The direction of the trend data and
the achievement of the goals will be assessed, and an ongoing review of the Strategic Directions
and measures in light of the results and trends will take place. This is a developmental process
to establish a framework for assessing the degree to which the Strategic Directions are being
realized from year to year.
The first step is to establish a set of topics to be further specified and assessed for each Strategic
Direction.
Access and Student Success
• Affordability
• Participation of North Carolina high school graduates in UNC
• Overall college-going rate
• UNC-going rate of diverse groups
• Achieving enrollment targets
• Qualified applicants to UNC finding a place in higher education
• Provide an assured and efficient transfer process for associate degree recipients
Section IV. Priorities and Strategic Directions 34
• Retention rates
• Graduation rates
• Access to UNC degree programs state-wide and by regions
• Educational attainment of North Carolina citizens
Intellectual Capital Formation
• Quality and productivity of academic programs
• Processes in place to identify current and emerging needs for new or revised academic
programs
• Graduates in high-need areas such as nursing, teacher education, information
technology, technology, and business
• Students prepared to meet the expectations of potential employers or programs of
advanced study
• Competitiveness of faculty salaries
• Expansion of endowed professorships/private fundraising
• Facilities adequate to meet enrollment plan
• Libraries that meet the needs of students and faculty
• Bond program completion
K-16 Education
• Teacher education graduates and completers of alternative programs
• School administrator graduates and participation in leadership development programs
• Professional development for teachers
• Partnerships with community colleges in teacher preparation
• Field and classroom-based research and public service programs
• Promotion of diversity and improvement in student achievement
Creation, Transfer, and Application of Knowledge
• Public and private external support of UNC research
• Collaboration in research initiatives within and without the University
• Application of research: patents, copyrights, licenses, royalties, startup companies,
consultations with public and private entities
• Outreach, extension, and engagement
Economic Transformation
• Alignment of relevant UNC degree programs with the needs of business and industry in
North Carolina
• Flexibility in scheduling UNC degree programs to accommodate the family, work, and
geographical circumstance of students
• Movement of new ideas, discoveries, inventions, and creations from the University to
applications in the economy
• Use of University resources and service units in support of economic and business
development
• Contribution of the University to the development of communities in the areas of
governance, culture, recreation, health care, and schools—all of which help attract
business and industry
Section IV. Priorities and Strategic Directions 35
• Availability of University resources and initiatives in each economic development region
of the State
Internationalization
• Student participation in education abroad, including participation by groups
underrepresented in study abroad and student exchange
• System-wide and campus international partnerships
• Use of technology in support of international education
• International student and faculty presence on UNC campuses
• Contributions of UNC faculty, staff, and students in addressing global issues
• Grants involving international focus or partners
• Courses and degree programs with international focus
• Outreach in international education to K-12 schools
Information and Knowledge Management
• Supporting teaching and learning through technology
• Sustaining network and computer infrastructure
• Maintaining security and privacy
• Utilization of a UNC-wide data warehouse
• Use of technology in support of administrative processes
36
V. The Role of the University of North Carolina
in Economic Transformation and Development
The work of the Special Committee on the Role of the University in Community and Economic
Development culminated with the Board of Governors’ approval of the Committee’s final report
at the May 2006 meeting. In addition to this report, the Special Committee and the Committee
on Educational Planning, Policies, and Programs worked together to propose an additional
Strategic Direction in Economic Transformation, which was also approved by the Board of
Governors.
Global Challenges
Between 1999 and 2004, according to the Bureau of Labor Statistics, North Carolina averaged
207 mass layoff actions annually with an average of 31,700 workers losing their jobs each year.
The decline in manufacturing jobs in North Carolina is mirrored in the experience of the rest of
the country. This decline is largely the result of intense economic competition from overseas,
although rapid increases in manufacturing productivity also have had an impact, as technology
is increasingly substituted for labor. These changes have led to a major economic
restructuring, moving North Carolina from a “brawn-driven,” labor- intensive manufacturing
and farming economy to a “brain-driven,” technology-based service and manufacturing
economy. The result is that many jobs require higher technical skills, as well as language,
cultural and other capabilities. As the U.S. Chamber of Commerce noted in its report “Tapping
America's Potential: The Education for Innovation Initiative,” to maintain our country's
competitiveness in the 21st century, we must cultivate the skilled scientists, engineers,
managers, and leaders needed to create tomorrow's innovations and sustain tomorrows
economy.
The next few decades will witness a faster and yet more profound set of changes as the
enormous economic potential of China, India, Indonesia and Brazil, whose total population of
2.4 billion constitutes more than 40 percent of the world's population, becomes fully integrated
into the international economic system. These economies will be a source of increased
competition at all skill levels, in all areas, as technological change unlocks their vast reservoirs
of human capital. One study suggests that as many as 1.3 million jobs in the information
technology sector alone will move overseas by the year 2010. At the same time, as these
economies continue to develop, they will also present vast new market opportunities for North
Carolina firms. The University should mobilize our wide variety of resources to enable North
Carolina companies to capitalize on these new opportunities. University expertise in science
and engineering, as well as faculty and graduates with special expertise in the history, culture,
language, politics, and geography of these countries are an enormous asset to companies as
they develop products and services to target these growing markets.
North Carolina’s Response
A relentless increase in the educational level of our citizens is required in order for North
Carolina to keep pace. But this imperative represents a formidable challenge for the rural
areas of the State and for population groups with low educational achievement. Unless
something is done to address the population that have educational levels below state and
national averages, the shift to an economy that depends upon technology, education and skill
will mean an increase in inequality. In particular, it will mean an increase in inequality
between the urban core and the small towns and rural areas of the State.
Skill and educational attainment alone, however, will not be enough, for there are many highly
skilled and educated people in the world, hungry for a better life. Technology alone will not be
Section V. The Role of UNC in Economic Transformation and Development 37
enough, for technology knows no national frontiers. The future of North Carolina will also
depend upon effective, collective leadership by business, government, non-profits, and higher
education to transform all our public institutions in ways that give our citizens and our
businesses every advantage. Government must become flexible, swift and smart.
Communities must identify their true economic opportunities and leverage unique regional
assets to set them apart from the rest of the world. No set of institutions could have a larger
role in this transition than the 16 campuses of the University of North Carolina, through a host
of creative partnerships with the private sector, state and local governments, community
groups, community colleges, and private colleges and universities. The UNC system is
uniquely positioned to supply the leaders and workers of tomorrow while at the same time
stimulating job creation and new investment in North Carolina.
The University in the Forefront
The University was, from its inception, created to respond to the needs of society. The
University’s core missions of teaching, research and service have always supported the
economic development of the State. Through these roles, our universities not only serve the
people of North Carolina but also serve their own scholarship and teaching. Faculty ask better
questions in their research, degree programs become better aligned with the needs of students
and their prospective employers. The creation of the Research Triangle Park, the centennial
and millennial campuses, the Small Business Technology Development Centers, the long
standing work of regional universities, the extension work of our land grant universities and
the broad outreach programs like, UNC Chapel Hill’s Area Health Education Centers and
School of Government, are just a few examples of the ways in which our campuses currently
contribute to economic development efforts.
As society’s needs change, so must the University. What is necessary is a renewed and
expanded commitment by the University to economic development. UNC needs to recommit to
preparing students for this competitive environment; we must strive to find better ways to
share and apply the technologies developed on our campuses, and we must supply the
expertise necessary to governments and communities so that they can adapt to the changes in
their environment. The economic development needs of the State must become a central
objective for the University, in ways that are accommodated by the traditional categories of
work that faculty accomplish. Much of what faculty already does will meet these needs, the
task is to support and transform their work in new ways. The success with which this
transformation is accomplished will have a tremendous impact on the economic future and
social fabric of the State.
Preparation for this transformation has already begun, sparked by House Bill 1264, a study to
determine future workforce needs of North Carolina and the academic programs of both the
University and the North Carolina Community College System that will respond to those needs.
This study, “Staying a Step Ahead,” is intended to better match the curricula offered by the
University and the Community College System to the current and future needs of North
Carolina.
The preparation of our State’s citizens through a thorough grounding in the arts and sciences
will always be the first and most important task for the University. What is needed is a new
understanding of the ways in which education and training contribute to the skills and
capabilities of the workforce. Lifelong learning, delivered through a variety of institutions and
by a variety of means, is now required for the majority of people. This suggests that the
contributions of universities and community colleges be seamlessly integrated. The old
distinction between higher education and workforce development no longer makes sense in a
world in which citizens must learn and re-learn a broad mixture of skills through the carefully
coordinated efforts of all educational and training institutions.
Section V. The Role of UNC in Economic Transformation and Development 38
While the widespread distribution of intellectual capital across North Carolina is the foundation
for this transformation of the economy, it will require leadership at both the state and campus
levels for these assets to be effectively deployed. It will take effective leadership to integrate
economic development into all of the work of North Carolina’s universities and colleges.
Furthermore, in order for the University to fulfill our commitment to economic development, we
must continue to play a leadership role in improving the quality of K-12 education. The
University must produce high quality teachers, especially in math and science. Programs such
as GEAR UP (Gaining Early Awareness and Readiness for Undergraduate Programs), whose
mission is to significantly increase the number of students who are prepared to enter and
succeed in postsecondary education, and the Mathematics and Science Education Network,
dedicated to improving the quality of math and science education in North Carolina schools,
are two examples of ways in which the University is focusing efforts to K-12 education
improvements. We are making progress but we must be steadfast in our commitment to
continuous evaluation and enhancement of K-12 education.
Defining Success
Economic development in North Carolina can be defined broadly as activities occurring at the
intersection of the public and private sectors designed to increase the long-term economic well-being
and quality of life of its citizens. Workforce development, leadership development, public
policy analysis, capacity building, the creation of intellectual capital and technology transfer
are all relevant components. It is important to note that this definition implies a focus on long-term
capacity building rather than short-term growth.
A fundamental question for involving post-secondary education in economic development is,
“What will success look like?” An understanding must be developed around a set of measures,
outcomes, and metrics, by which this work will be guided, evaluated, organized, and funded.
There can be no single measure of success in economic development; the process is far too
complex and subtle, and in most cases the impact occurs over many years. Furthermore, it is
often the case that the outcomes that are easiest to measure are not the most important factors
in economic development; for example, developing social capital in low-wealth communities is
essential but difficult to quantify. Therefore, we must proceed with caution in developing these
metrics.
It will be important that each campus develop its own measures of success within a broad
framework of the University. The measures should include inputs (who are the clients, by
whom are they accessed, and what resources are required to serve them), outputs, (what are
the production levels for each function defined for each campus), and outcomes (what are the
actual results of the activities). Because of the diversity in size and mission of the 16 member
campuses, each set of metrics will differ; however, they should all be guided by the overall
metric of increasing the long-term economic well-being of North Carolinians.
Given the challenges that North Carolina faces, and the central role to be played by the
University in meeting these challenges, it is incumbent on the Board of the Governors and
leadership across the University to establish clear goals, design effective strategies, make
required changes and mobilize necessary resources, and clearly measure success in doing so.
It is important to note that success will hinge upon the economic development goals being
recognized as integral to all the work done by faculty, whether it is teaching, research, or
service. The research agendas, teaching curricula and engagement activities that already do so
much to sustain North Carolina must nonetheless be constantly adapted to the changing
environment. The agenda that follows will provide a starting point from which to do all these
things.
Section V. The Role of UNC in Economic Transformation and Development 39
General Requirements and Changes
Any specific strategy is inevitably embedded in an overall institutional culture, and a certain
level of leadership from chancellors and other senior officers on campuses is required to set the
tone and expectations among faculty and staff. Certain general changes are required,
consistent with the historical mission of the university, in order that all 16 campuses become
better oriented towards the economic development needs of the State. Furthermore, all that
follows requires sustained, continuous effort. The University is uniquely positioned to be an
honest broker, capable of taking a long view of the challenges faced by the State.
• One or more senior officers within each campus and in the UNC General Administration
should be given clear responsibility for the role of the University in economic
development. This responsibility should be the lead element in their portfolio of duties.
• There should be increased rewards and expectations for all interested faculty so as to
encourage external engagement. This change should be accomplished through a
formal, bottom-up process within each campus that educates and mobilizes faculty.
Because faculty compete in national and in many cases, international job markets, it is
important that external engagement opportunities make a positive contribution to
faculty professional development.
• These new rewards and expectations should be communicated clearly to all faculty. In
addition, web sites, publications, media relations, and other methods of communication
should be directed to targeted constituency groups as well as to the general public.
• Ideas and best practices should be shared and diffused across campuses through
formal and informal arenas, coordinated by the UNC General Administration.
• External audiences should be made aware of the capacity and willingness of
universities to be partners through regular, detailed communication. Talks,
presentations and forums that engage policy-makers, opinion leaders and community
leaders should be a regular element in the university calendar, employing a variety of
faculty and administrators.
As the leading provider of higher education, the University, together with the North Carolina
Community College System, has always played a central role in the economic well-being of the
State. Giving the State’s citizens all the benefits of a comprehensive education in the arts and
sciences remains the first and most important task for the University and the basis upon
which all other activities must be built. However, in order to meet the economic development
needs of the State, UNC must do more. The task before us can be divided into five goals, with
corresponding strategies, requirements, and sample metrics:
Goal 1: Deliver learning that meets the needs of the 21st century economy
In order to prepare a citizenry that can prosper and lead in the 21st century, UNC needs to
align our curricula more closely with the needs of people, communities, and businesses across
the State, and in particular with the needs of businesses served by each regional campus. The
University will need to accelerate our orientation towards continuous, lifelong learning in order
to better meet the needs of North Carolinians who must navigate a constantly shifting labor
market. To make these changes in curricula requires a University that is well-informed and
adaptable.
Strategies
• Our institutions must offer an education that prepares students for a work environment
that is increasingly interdisciplinary, in which creative thinking, technical skills,
Section V. The Role of UNC in Economic Transformation and Development 40
business expertise and the ability to communicate in many ways to a variety of
audiences must all be combined. An example of effective response to this kind of need
is the Professional Science Master's (PSM) program. A PSM is a master's degree
program in natural sciences (or mathematics) that will extend the scientific knowledge
of students while integrating the disciplines of management, law, information sciences,
and other professional areas. Several campuses currently offer or plan to offer these
types of degrees.
• The classroom experience must be well-integrated with what is learned on the job. The
use of cooperative learning, internships and service-learning should be increased and
spread widely across fields of knowledge. Our universities need to emphasize
entrepreneurship and leadership across all disciplines both inside and outside the
classroom. UNC should remain engaged with our graduates throughout their careers,
delivering continuous, lifelong education where and when it is needed (for example,
campuses should consider operating increasingly on a 24/7 basis, as business does). A
model program in this respect is the online MBA at ECU.
Requirements
• The speed and responsiveness with which academic units can make curriculum
changes must be significantly increased.
• Each campus should obtain good economic intelligence that clearly identifies the needs
of businesses across the region and the State so that certain curriculum change can
meet those needs.
• Distance education and lifelong education should be extended to all communities,
especially geographically remote areas. This is one of the many areas in which the UNC
Center for Public Television is already serving a vital role with its lifelong learning
program service. The funding model for distance education should be flexible in order
to accommodate a variety of financial needs, thus allowing disadvantaged communities
to participate. Degree programs should be even more closely and seamlessly
coordinated with other campuses and community colleges.
• The spirit and skills of entrepreneurship should be infused across disciplines, working
with businesses and communities. There must be a renewed focus on language and
culture, promoting a multidisciplinary education for a global economy.
Metrics
Inputs
• number of identified business needs for curriculum change, technical assistance, or
specialized graduates
• number of requests between universities and private companies for research
• number and size of research parks
• number of adult learners enrolled in continuing education
• number of adults returning to University for advanced degrees
• number of courses, curriculum, and programs offered in entrepreneurship
• resources to support all of the above
Outputs
• number of changes in curriculum
• percentage of research budget from private sector
• occupancy of research parks
• number of adults completing degree and non-degree programs
• increase in amount and efficiency of resources
Section V. The Role of UNC in Economic Transformation and Development 41
• number of students graduating with training in entrepreneurship
Outcomes
• number of new courses, curriculum, and programs recognized by private sector and
peer institutions as excellent
• satisfaction/return rate of private sector and universities
• increase in economic output of research parks
• increase in income and wealth of adult learners
• resources imbedded in funding streams
• number of students recognized for business and social entrepreneurship success after
graduation
Goal 2: Enhance the capacity of public institutions to implement successful
and sustainable economic development policies
The University must discover every opportunity and adopt every means for the delivery of
applied research and technical expertise to build the capacity of state and local public
institutions. Good governance, broadly understood, can be a source of significant competitive
advantage for any economy. Faculty across a wide range of disciplines can contribute to this
capacity building through applied research, teaching, and many kinds of external engagement.
Strategies
• Universities should establish mechanisms to link the faculty’s traditional research and
education activities to economic development opportunities. In doing so, universities
become the center for research for their region. For instance, some UNC Greensboro
faculty work closely with regional leaders to enhance economic development efforts by
providing benchmarking analyses and contributing expertise in development of strategic
plans.
• In keeping with the public service role of all University employees, faculty in a variety of
disciplines should stand ready to deliver applied research, studies and other analyses to
state and local leaders as needed.
• Campuses should increase the level of awareness of the variety of technical training
already offered to staff and managers in the public sector and where opportunities exist,
this training should be expanded, and the mechanisms by which it is delivered should
be enlarged, including service delivery on-site and through distance education
enhanced by the use of technology.
Requirements
• Each campus should have a senior officer responsible for economic development
initiatives. This officer should have ready access to the Chancellor. This senior officer
will be expected to be an effective gateway to campus assets and resources which
support community and economic development and to ensure effective coordination and
collaboration among campus units with economic development roles. An example of
this type of role is the position of Vice Chancellor for Extension, Engagement, and
Economic Development at NC State. NCSU’s Economic Development Partnership (EDP)
is an organization with demonstrated commitment by the University to external
partners. EDP is based upon external demand for access to the university. It rests on
a multi-faceted funding model, with external partners (public and private) willing to
provide financial support and lobby for state support. The Center for Regional
Development at WCU, The Appalachian Regional Development Institute at ASU, and the
Center for Economic Development and Community Engagement at ECU are also
Section V. The Role of UNC in Economic Transformation and Development 42
examples of organizations which serve their respective communities by facilitating
access to university resources.
• Faculty who are engaged in applied public policy and in the delivery of service and
training expertise should be rewarded in ways commensurate with faculty engaged in
basic research. Faculty and administrators engaged in economic development and
public policy should be aware of the activities of other public agencies engaged in the
same areas. The lead economic development officer or organization should ensure that
the university’s efforts are fully coordinated with these outside efforts.
• The University should establish and maintain long-term partnerships with key
stakeholders across the region, the State, and the Nation. Building deeper
relationships with existing partners like the Research Triangle Foundation is vital.
• Where appropriate, recruit and hire faculty with an interest in applying their discipline
to economic development.
Metrics
Inputs
• resources devoted to senior “public engagement” administrators and to “gateway” office
• number of faculty engaged in public service and public policy research
• number of courses, technical assistance, and publications dedicated to public officials
and community leaders
• number of off-campus seminars, courses, and other education and training
• number of public officials and community leaders seeking training or technical
assistance
Outputs
• scope and depth of engaged scholarship and public service
• number of faculty tenure and promotion decisions based on public service
• number of partnerships with state, local, and community groups
• number of responses to requests from public and community leaders for special
training, technical assistance, research and materials
• satisfaction level of clients of university services
Outcomes
• improved public policy as a result of university engagement
• improved performance of state and local governments and institutions as a result of
university engagement
• improved intelligence systems of public institutions
• enriched scholarly output of faculty as result of public engagement
Goal 3: Enhance opportunities for research and innovation
The University must sustain and enhance an environment that promotes and supports
research, innovation, and the application of new knowledge. In doing so, we will strengthen
the innovative research capacity that is essential to helping North Carolina meet the challenges
of a global economy. All efforts by the University in the area of economic development rest on
the foundation of faculty’s access to knowledge and expertise drawn from the public pool of
scholarship. Scientific discovery and the innovation linked to it represent a narrower pool of
knowledge, subject to the proprietary claims of intellectual property. Goal 4 is aimed at
accelerating the transfer of this knowledge from the lab to the store shelf.
Section V. The Role of UNC in Economic Transformation and Development 43
Strategies
• Establish strong collaborative research relationships among institutions to look for
more opportunities to jointly attract research funding and solve problems.
• Enhance ability to conduct innovative research and to transfer new ideas into
commercial opportunity.
• Continue to support research in core areas and link research needs with capabilities in
areas such as biotechnology and nanotechnology.
• Coordinate regional economic development needs and opportunities, future university
research, and economic development funding resources.
Requirements
• Establish a state-wide, distributed support network of key technology transfer partners.
• Offer incentives to conduct inter-institutional and interdisciplinary research.
• Invest in competitive faculty salaries to attract and retain talented faculty, post-doctorates
and graduate students.
• Revise promotion and tenure guidelines so that collaboration, entrepreneurship, and
scholarly community assistance are valued alongside more traditional forms of
scholarly achievement.Fund entrepreneurial sabbaticals and create entrepreneurs-in-residence
programs to highlight the important role of this type activity.
Metrics
Inputs
• research problems involving interdisciplinary or multi-institutional solutions
• number of and funding amounts for inter-institutional faculty grant proposals
• number and type of other incentives for inter-institutional and interdisciplinary work
• research budgets of member institutions
• research instrumentation facilities and space
• number of undergraduate, graduate, and post-doctoral students engaged in research
• number of offices devoted to partnerships with industry
• number of research faculty compared to peers
• number of institutional reviews of tenure and promotion policies
Outputs
• number of active partnerships among institutions
• number of grants awarded to multi-institutional teams
• number of faculty involved in entrepreneurial activities
• amount of sponsored research from competitive sources at each campus
• amount of research funded by the private sector
• salaries and resources for research faculty compared to peers
• tenure and promotion policies which recognize entrepreneurial activity
Outcomes
• measured positive impact of multi-institutional partnerships
• measured positive impact of multi-institutional research grants
• measured impact of research on state, national and global peers
Section V. The Role of UNC in Economic Transformation and Development 44
• creation of high paying jobs, sound companies, vibrant industry sectors based on
research and partnerships with private sector
• number of faculty receiving tenure or advancement based, at least in part, on
entrepreneurial behavior, public service, and/or collaborative research
• number of distinguished awards won by faculty (including membership in national and
American Academies)
Goal 4: Provide support to build competitive businesses
As North Carolina’s economy becomes increasingly technology intensive, the University must
continuously find new ways to transfer the research and ideas discovered on campuses to
increase competitiveness of North Carolina businesses. The greatest potential for new job
growth in NC lies in converting the substantial and rapidly growing R&D assets into new
entrepreneurial growth companies. Equally as important are the opportunities for our
businesses to capitalize on growth in emerging international economies. Faculty members with
expertise in the culture, history, language, politics and geography of those countries should be
leveraged to help North Carolina companies compete globally.
Strategies
• We need to address gaps in the service and outreach needed to support technology-based
economic development. Many of businesses’ needs can be met by existing
University capabilities but we must first identify those needs and then partner with
industry to find solutions. One such way in which our universities are already helping
North Carolina companies stay competitive is Western Carolina’s rapid prototyping lab.
The Engineering and Technology Department faculty and students have worked with
several area businesses to reduce material costs by reverse engineering a part or piece
of equipment and then creating a prototype that can be used in manufacturing.
• Campuses should develop research capacity oriented towards the technology needs of
firms based in the State or in their region. Campuses should be leaders in working
with industry to identify primary needs for growth of regional clusters. Two original
examples of careful orientation are the proposed Appalachian Enology and Viticulture
Services Center at ASU, dedicated to serving North Carolina’s expanding wine industry
and the Center for Marine Sciences at UNCW, which has focused a wide variety of basic
and applied research in marine biotechnology.
• Each campus should serve as the hub of formal and informal networks through which
the needs of business are matched up not only with the supply of technology on
campus but also management counseling, training, regulatory compliance, process
analytics and best practices. Good examples of existing programs include NC State’s
Industrial Extension Service and NC Cooperative Extension Service at NC State and NC
A&T.
• Faculty and entrepreneurs should have access to management and financial expertise
provided through interdisciplinary programs.Management and technology programs
should foster entrepreneurship to support North Carolina’s competitiveness in the
global economy.
• Universities should play a catalytic role in the establishment of venture funds able to
finance start-ups through the seed capital stage.
• Extension and outreach programs from regional and land grant campuses should be
closely coordinated to maximize the relative strengths of each institution and increase
public accessibility.
Section V. The Role of UNC in Economic Transformation and Development 45
Requirements
• Perform an inventory of assets relevant to North Carolina companies doing business
internationally. These assets would include faculty with expertise in the history,
culture, language, politics and geography of other countries. This could become a
model for effective collaboration among business, government and higher education
across a wide range of areas.
• Expand the capacity of existing business outreach and service efforts of extension
programs which provide in-depth management counseling and educational services to
businesses.
• Reward faculty with a history of serial entrepreneurship (broadly defined to include
those who are innovative via start-up companies, as well as new programs to help the
community) in certain targeted areas for recruitment and retention. The “Jobs for the
Future” project at UNCP is sustained by entrepreneurial faculty of this kind.
• Research in support of industry should be carefully coordinated with community
colleges where possible. For example, NEMAC at UNCA, a national center for modeling
and analysis of environmental data, coordinates the work of several universities,
community colleges, and private industry.
• Encourage university-industry interactions by having a single point of contact at each
campus responsible for coordinating and facilitating industry relations. The university
representative should communicate regularly with the economic development
professionals in their region.
• Facilitate technology transfer by integrating the function into the core mission and
budget of each university so that economic development and public service, in addition
to revenue generation, are equally valued.Provide technology transfer offices with
required resources and flexibility to maximize economic development potential of
university discoveries.
• Provide business with high-quality incubators and with labs at a reasonable rate
subsidized by state or local funding. In rural regions, a system of incubators jointly
sponsored by the university and participating communities should be considered. The
Fayetteville Business Center, sponsored in part by FSU, is an excellent example of a
public/private partnership along these lines as is the Charlotte Research Institute at
UNCC.University endowments have a fiduciary duty to maximize returns; however,
those endowments should be encouraged to consider, as part of their alternative asset
allocation, opportunities to support university-affiliated seed funds.
Metrics
Inputs
• number and resources of tech transfer offices
• amount of risk and venture capital connected to university
• number and resources of business incubators connected to university
• number of courses offered for business people
• number of labs available for private sector use
• number of programs built around specific regional or state industries
• number of partnerships with industry associations
Outputs
• number of US patents filed and secured
• number of risk and venture capital placements
• number of incubator tenants
Section V. The Role of UNC in Economic Transformation and Development 46
• number of private sector users of university labs and equipment
• graduation numbers and rates of executive education programs
• company satisfaction measures of partnerships with universities
Outcomes
• number of companies launched and surviving in North Carolina
• market capitalization of university-launched companies
• number of high paying jobs created by university-related companies
• successful graduation rates from incubators
• documented improvements in companies as a result of university-based continuing
education and technical assistance
• documented product improvements as result of utilization of university equipment or
labs
• documented strengthening of industry sectors as result of university involvement
• patent strength as measured by utilization and citation by peers
Goal 5: Grow high-quality, healthy and attractive communities
The community within the University must be open to and better integrated with communities
outside. Our universities are home to a rich store of creative, enlightened arts and ideas that
need to be shared widely. Both the community and the university are vibrant when this
integration occurs.
Strategies
• Art and culture depend upon rich networks that break down barriers between
university communities and local communities. Each campus should seek to be a
central player in such networks, drawing external audiences and constituencies of every
kind. The North Carolina School of the Arts has model programs in this respect. In
addition to opening many performances up to the public, NCSA faculty participate in
many community outreach activities such as Artists Reading to Children in Hospitals
(ARCH).
• Several campuses have programs in public health and nursing which contribute in
significant ways to the health of our communities. These are enhanced when the
academic and clinical sides of each program are more closely integrated, as in the
Public Health Leadership Program at the University of North Carolina’s School of Public
Health, or the Interdisciplinary Rural Health Training program at East Carolina
University.
• Faculty represent a valuable human resource for local communities which is more fully
realized when they participate in community projects. This kind of engagement has a
valuable reciprocal effect on academic and external communities. University
programs/strengths should be leveraged to bring new desirable university partners to
communities. NC Central’s Young Entrepreneurial Services program is an excellent
example of this kind of community outreach.
• The act