Staff cuts, less aid for some students all part of UNC's $70M cost-cutting plan

The University of North Carolina at Chapel Hill announced a tentative cost-cutting plan with the goal of saving around $70 million across the institution.

The proposed changes include:

· Targeted savings and budget adjustments: The University of North Carolina at Chapel Hill aims to save approximately $70 million (2% of its operational budget), with $29.5 million targeted for the current fiscal year. These savings are a direct response to reduced state and federal funding for research and operational costs.

· Personnel and operational efficiency: The plan includes significant adjustments to staffing and operations. This involves implementing a faculty retirement incentive program, eliminating vacant roles, consolidating administrative functions (HR, IT, finance, communications, research administration) and reducing spending on procurement and catering.

· Impact on out-of-state financial aid: Financial aid for out-of-state students will be significantly cut, decreasing from 44% to 18% of overall support to prioritize North Carolina residents. This change aligns with mandated limits on non-resident enrollment, though current out-of-state students won't be affected.

A message posted Wednesday on the university's website outlined a plan to spot areas where money could be saved in response to a slashing of budgets at the state and federal level for research and operational costs at universities across the country.

The letter from the university communications team message said school leaders in athletics, student success, the graduate school and the NC Collaboratory are working to find solutions.

"Additionally, we will eliminate vacant roles and associated costs, institute a faculty retirement incentive program and seek operational energy savings through system replacements and upgrades."

The message said spending will be "significantly reduced" in procurement and catering. 

The message was signed by Chancellor Lee Roberts, Interim Executive Vice Chancellor and Provost James Dean, Jr. and Vice Chancellor for Finance and Operations Nate Knuffman.

"We recognize that it is not easy to receive this kind of news," the letter said. "These are difficult choices and there are many different opinions on what is mission-critical and what is not. Behind every budget decision are real people who feel the impact in deeply personal ways, which is why we are working hard to find savings in as many areas as possible before a reduction in staffing. We appreciate your patience and feedback as we work across this complex organization to identify greater detail."

Recently, UNC-Chapel Hill faculty members voiced concerns over a 'highly unusual' lack of tenure promotions at a board of trustees meeting in May. Later, the board approved all of the previously deferred personnel actions.

The announcement comes a day after the Trump administration decided to freeze $108 million in federal funding for Duke Health, which impacts Duke University School of Medicine and the overall health research and health care system at Duke.

UNC leadership met on Wednesday to discuss the plan.

"The prioritization has really been, how do we protect our core mission?" Knuffman said. "We've tried to be as transparent as possible."

Knuffman added this type of effort is happening across higher education. Last week, news emerged that nearly 600 employees at Duke opted to take buyouts through a Voluntary Separation Incentive Program. In February, North Carolina State University enacted a "pause on all hiring activities."

A meeting with the full UNC Board of Trustees will occur on Thursday.