Budget funds low-tuition option, aids historically black campuses

The state budget compromise mandates a $7 million cut to the UNC system, but includes special programs and new support for college campuses that have historically served racial minorities.

The UNC system as a whole would receive $2.9 billion in state appropriations in the coming fiscal year, including full funding for projected enrollment growth and money for faculty recruitment, medical education and modernization of UNC’s data systems. UNC President Margaret Spellings issued a statement Tuesday calling it “a good day for the University.”

The $7 million reduction can’t be taken across the board, according to the budget language, and certain areas are off limits for the cut. Additionally, UNC-Chapel Hill’s law school would be cut by $500,000.

At the same time, the budget funds a new low-tuition option at three universities and modest new spending at minority campuses. The infusion may result in a boost in enrollment at the state’s five historically black universities and UNC Pembroke, which began as a university for American Indian students.

Most significantly, the proposed $23 billion budget plan funds the NC Promise Plan, setting aside $51 million to cover discounted tuition at three UNC system schools – Western Carolina University, UNC Pembroke and the historically black Elizabeth City State University.

“We’re looking forward to NC Promise giving the people of North Carolina an opportunity for higher education and we’re moving full speed ahead with it,” ECSU spokesman Robert Kelly-Goss said Tuesday.

Next year, in-state students at the NC Promise campuses will pay a reduced tuition of $500 per semester, while out-of-state students will pay $2,500 per semester. The budget covers the cost for all students, despite an earlier House proposal that would have dropped the discounted tuition for out-of-state students. The three campuses involved in NC Promise are all located near North Carolina’s borders, and leaders hope to draw students from the neighboring states of Virginia, Tennessee and South Carolina.

The budget also funds a newly established state-funded scholarship program for N.C. A&T State University in Greensboro and N.C. Central University in Durham. The plan sets aside $1.5 million in the coming year for the Cheatham-White Scholarships, which were established last year. The merit scholarships will be awarded to up to 20 students at each campus next year, if the universities are able to raise matching private dollars. The awards are set up to woo the most talented students, similar to UNC-Chapel Hill’s Morehead-Cain Scholarships and N.C. State University’s Park Scholarships.

N.C. A&T, which offers nine doctoral degrees, would also receive an additional $2.5 million to support its graduate programs in engineering, computer science, energy and environmental systems, education and counseling. The university was classified as a doctoral level institution at the height of the recession, but there was no state money available to cover the additional faculty, lab and graduate student expenses.

“We were not able to receive funding at that time because of the economic conditions,” said Robert Pompey Jr., N.C. A&T’s vice chancellor for business and finance.

The budget agreement received tentative Senate approval Tuesday.

It would provide $2.8 million for Elizabeth City State in the coming year to stabilize the university’s budget after several years of steep enrollment declines. ECSU has embarked on a recovery plan that includes debt refinancing and dorm renovations to attract more students.

“We worked really hard this past year along with UNC Board of Governors, and we believe the legislators’ support of stabilization funds signals their support of us and our plans for the future,” Kelly-Goss said.

The budget plan also signals future expansion of academic programs at UNCP and Winston-Salem State University. It calls for the UNC Board of Governors to study the establishment of a school of health sciences and health care at UNCP and three possible programs at WSSU – physician assistant, chiropractic medicine and basic law enforcement training.

This story was originally published June 20, 2017 at 7:27 PM with the headline "Budget funds low-tuition option, aids historically black campuses."