University of North Carolina
FY 2023-25 Operating Budget Priorities
THE UNC
SYSTEM
Estimated 2023-25 Base Budget
(Excludes State Education Assistance Authority & Aid to Private Institutions)
FY 2023-24
$3,338,170,416
FY 2024-25
$3,338,147,695
UNC System Expansion Budget Priorities
Faculty Retirement Incentive Program
Offering a financial retirement incentive for tenured faculty will help our
institutions release and reallocate or reduce resources in support of
institutional needs. Priority would be given to institutions that have
been most impacted by changing enrollment patterns (NCCU, UNCA,
UNCG, WSSU, ECU).
$16,800,000 NR
UNC Performance-Weighted Enrollment Change
Adjusts funding to reflect each institution's change in enrollment and
performance on increasing undergraduate student success, reducing
student debt, and increasing productivity. In 2022, resident student
credit hours decreased by 2.9% systemwide. We expect enrollment to
rebound modestly in the 2023.
($16,713,978)
$5,000,000
Completion Assistance Programs
Based on a proven model used by Georgia State University to increase
graduation rates, this program would allow ECSU, FSU, N.C. A&T, NCCU,
UNCA, UNCP, & WSSU to provide aid to students who are on track to
graduate but are in danger of dropping out because of financial
shortfalls.
$10,500,000
$10,500,000
Cybersecurity
Supports systemwide approach to central log management, network
monitoring, endpoint detection and response, and other cybersecurity
operational needs.
$5,350,000
$3,250,000 NR
$5,350,000
Distinguished Professorship Matching Funds
Addresses the backlog in State funds needed to match private donations
supporting endowed professorships, which help attract and retain top
faculty talent.
$10,000,000 NR
$10,000,000 NR
Total Requested Increase
Total Percent Change
($863,978)
$30,050,000 NR
$29,186,022
0.9%
$20,850,000
$10,000,000 NR
$30,850,000
0.9%
Inflationary Adjustments
Faculty and Staff Salaries
Due to inflation and the tight labor market, institutions are struggling to
recruit and retain talent. Our faculty and staff are key to our continued
progress on improving graduation rates, decreasing student debt, and
increasing research productivity. Each 1% increase in salary and
associated benefits costs $34.1 million.
Inflationary Increases to Operational Costs
Inflation has also significantly eroded non-personnel operating budgets.
A prime example is the cost of energy. In FY22, the UNC System spent
over $186 million on electricity, gas, water/sewer, and other utilities.
Through December, utility costs have increased over 16% year-over¬
year, which has been driven by higher electricity and natural gas rates.
UNC System requests funding
commensurate with state agencies and
strongly supports Labor Market Adjustment
Reserve funding.
Note: All Items are recurring unless specified os nonrecurring.
Approved by The University of North Carolina Board of Governors on February 23, 2023
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