Budget Update

Posted on January 19, 2022

Dear Colleagues,

As you are aware, recent enrollment declines have impacted tuition revenue and state funds over the 2021-2023 biennium. As a result, we have been working through budget reduction plans across all divisions, while keeping our mission in mind. We have employed several practices that embrace shared governance throughout this process: to communicate broadly, to engage in local-level discussions to inform decision making, and to work closely with our Faculty Senate.

We appreciate your engagement throughout this process, which has helped deans, associate vice chancellors, directors, chairs, heads, and other leaders make informed recommendations to the appropriate vice chancellors. After a comprehensive and holistic review of all budget reduction plans from all levels of leadership, I have reviewed and approved the final budget reduction recommendations. My decision-making was guided by the following considerations:

  • Reduction recommendations will include input from unit-level leadership to determine the impact on outcomes and necessary adjustments to overall operations.
  • Our actions must be consistent with our core mission, UNCG’s strategic framework, and priorities (integrated student success, enrollment management, areas of distinction and growth, and community engagement).
  • Strategic rather than across-the-board reductions will be implemented, resulting in differing reduction percentages across colleges/schools and administration.
  • Where applicable, reduction planning will include evaluation of possible revenue growth opportunities, and potential changes in student credit hour production must be considered.
  • Where applicable, reductions will seek to achieve improved outcomes and effectiveness through reorganization (including the merger of Institutional Research and Information Technology Services).
  • Where applicable, reductions will lead to informed decisions to reduce, pause, or eliminate certain activities and events altogether.

Reductions by Division & School/College

The table below presents my decisions regarding the percentage reductions by schools/colleges and administrative divisions. 

It is worth noting that many administrative units have taken higher reductions than colleges and academic departments. At the same time, we have made strategic investments in philanthropic development and student recruitment, which will help stabilize our fiscal situation moving forward.

Division College/School 2021-22 Permanent State Budget Budget Reduction %
Academic Affairs Arts & Sciences 38,333,141  1,533,326  *4.00%
Business & Economics 17,703,178  531,095  3.00%
Visual &Performing Arts 12,029,560  384,946  3.20%
Education (excludes MSPS) 10,720,753  321,623  3.00%
Graduate Studies 3,580,321  143,213  4.00%
Health and Human Sciences 17,305,376  519,161  *3.00%
International Honors College 590,454  35,427  6.00%
Joint School Nanoscience & Nanoengineering 3,444,774  –  0.00%
Nursing 9,222,471  368,899  4.00%
Provost (includes Acad Admin, IPC, MSPS, OLL, PVT, USS, UTLC)** 22,075,285  1,541,927  6.98%
University Libraries 11,128,098  667,686  6.00%
Academic Affairs Total 146,133,411  6,047,303  4.14%
Research and Engagement Total 2,354,916  157,962  6.71%
Student Affairs Total 3,680,214  246,860  6.71%
Chancellor (includes Administration, Legal, Compliance, Communications, WAM) 5,269,290  245,560  4.66%
Enrollment Management 4,629,371  46,294  1.00%
Finance and Administration 22,394,743  1,043,643  4.66%
Information Technology Services 10,739,774  500,496  4.66%
University Advancement 3,742,024  37,420  1.00%
Gateway 549,526  – 
*One-time reductions for 2021-22 in two academic units are less than the permanent reductions due to unique circumstances of each area; A & S’s one-time reduction in 2021-22 is 1.96% ($749,697), and HHS’s one-time reduction is 2.48% ($430,000). The provost will allocate one-time funds from her office to cover these academic units’ full share of one-time reductions to meet the required Academic Affairs reduction amount for 2021-22.
** Included in the provost’s reduction target are the following units: Moss Street Partnership School (MSPS), International Programs Center (IPC), UNCG Online (OLL), Assessment, Accreditation & Academic Program Planning, University Teaching & Learning Commons, and Undergraduate Student Success.  While the overall budget reduction for these administrative units (6.98%) has been determined, the provost continues to work with leadership in these areas to consider the reorganization of UNCG Online, which may impact reporting lines and budgetary outcomes across these areas. This iterative process requires significant discussion and analysis to determine final reduction amounts.  


Strategic Reinvestment Opportunities

As noted, the budget reduction covers the biennium, including 2021-22 and 2022-23 fiscal years. For the 2021-22 current fiscal year, we will address the tuition shortfall with the one-time fund reductions from each division. We will also have additional one-time funds to reallocate strategically in alignment with the university’s strategic priorities. In addition to known one-time needs in core underfunded areas (e.g., ITS), we also have received recommendations for reallocation funds from academic deans. Reallocation decisions will be communicated to the affected units shortly, as these funds will need to be used before June 30, 2021. 

For the 2022-23 fiscal year, we will use the budget reductions to address the state shortfall related to enrollment and to support strategic priorities. Discussions are underway and will continue between the provost and academic deans regarding academic areas for potential reinvestment as well as between the chancellor and other vice chancellors. Our decisions for reallocation of funds will be based on these priorities:   

  • Academic areas of distinction with clear student demand (may include both new or existing academic programs)
  • Areas that can improve student retention and success
  • Investments that will drive and manage enrollment

As future decisions are made, we will continue to share information and updates. Please work with your immediate leadership to better understand how the reduction decisions may impact you and your division. Your commitment to student success and retention is critical to the educational journeys and achievements of our students and the University’s overall budget. 

Thank you for your continued efforts and engagement as we learn how to effectively teach, conduct research, work and live through this pandemic. You have my commitment to continue to work collaboratively with you as we build a strong future for UNCG. 

Kind regards,

Franklin D. Gilliam, Jr.