UNC-Chapel Hill is making $90 million in cuts — but spending more in other areas
UNC-Chapel Hill plans to cut $89.2 million from its budget over the next three years, targeting academic programs, financial aid, staffing and administrative spending. The university says it will simultaneously invest $45 million in areas like enrollment growth, campus safety and AI research.
Here’s the full story: UNC is cutting $90 million from its budget over the next three years. Here’s how
Here are key takeaways:
- What’s driving the cuts: UNC’s chief financial officer Nate Knuffman cited federal uncertainty around research dollars, the absence of a state budget and a UNC System policy change that rerouted funding from Chapel Hill to other system schools.
- Biggest savings target: A $25 million initiative called ServiceFirst will consolidate services like IT, human resources and communications into a shared model, prioritizing attrition over layoffs. Staff have expressed anxiety about the changes. Read more about that: UNC overhauls approach to comms, finance, IT, HR. What we know and what we don’t
- Financial aid impact: The university is cutting $17.2 million in nonresident financial aid over three years, prioritizing aid dollars for North Carolina residents.
- Academic programs at risk: UNC plans $7 million in cuts to centers and institutes by 2027 and $2 million in cuts to low-performing academic programs by 2029. There are 28 degree programs, in addition to 19 departments, that qualify for further review. However, the school’s new provost, Magnus Egerstedt, told the trustees in March that he is reexamining the data about what he prefers to call “underenrolled programs.”
- Where UNC is investing: The $45 million in new spending targets enrollment growth, campus safety, AI research and classroom and lab renovations. Trustees also approved an $8 million initial investment in Carolina North, a 230-acre development that will include 2,200 undergraduate beds.
The summary points above were compiled with the help of AI tools and edited by journalists, including politics editor Jordan Schrader. The full story in the link at top was reported, written and edited entirely by journalists.
Jane Winik Sartwell
The News & Observer