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Schools, colleges hit by spending cuts

Thursday, April 16, 2009
(Updated Friday, April 17 - 8:03 am)

GREENSBORO — Last week, Gov. Bev Perdue ordered that state agencies halt all nonessential spending and travel.

This week, UNCG and N.C. A&T are finding out just how serious she was.

“We’re having to be quite careful,” said Jeff Colbert , a professor in the UNCG political science department. “We’re conserving all the materials that we have because we just won’t be able to purchase anything more for the rest of the fiscal year. Any purchases that haven’t been paid for have been canceled.”

Colbert said professors have been encouraged to save everywhere they can, even giving exams on overhead projectors rather than making copies. Departments throughout the university are having to cancel travel, maintenance and computer repair.

And that’s not the worst of it.

Last week, a memo from the Office of State Budget and Management said “only mandatory obligations including payroll, utilities, financial aid, required State Aid and debt service” would be funded.

According to UNCG officials, that means the school will reduce or eliminate basics such as garbage pickup, gas for the physical plant and even purchases such as toilet paper and cleaning supplies.

“We don’t have a lot of specifics yet on how this will actually work,” said Reade Taylor , vice chancellor for business affairs at UNCG. “But what people are saying, basically, is that you can apply for and get all the exceptions you want; if the state doesn’t have the cash, you simply can’t pay your vendors.”

The freeze is hitting county school systems, as well. Charlotte-Mecklenburg Schools Superintendent Peter Gorman said Wednesday the freeze made his staff rush to cancel $12 million worth of supplies and services.

Guilford County Schools officials estimate the district has about $15,000 in outstanding purchase orders for materials and supplies. Those materials will likely be processed as planned.

Nora Carr, the system’s chief spokeswoman, said the Career and Technical Education department planned to purchase about $500,000 in new computers, software and professional development. She

said the school system is appealing to the state to continue with at least some of that spending.

Guilford County officials say the school system will be affected by the state funding freeze but not as much as others. Carr said the system expected more state budget issues.

“It looks like we’re in better shape due to freezing noninstructional spending and hiring earlier this year as a precaution,” Carr said. “We had anticipated that there might be additional issues either at the state or local level.”

In December, the state required the school system to return about $2.8 million to help with the state budget shortfall. School officials implemented a hiring freeze and withheld some money from schools at that time.

At N.C. A&T, Chancellor Stanley Battle issued a memo to staff members Wednesday outlining the school’s response. Battle said that spending of nonstate funding would be halted and that all school purchase cards for expenses were deactivated as of Thursday.

UNCG Chancellor Linda Brady said her school also wouldn’t be spending any nonstate funds unless it had to.

“We want to be sure we’re sending the right message about good stewardship of our nonstate-appropriated funds,” Brady said. “It will be a challenge, but the real danger is that these freezes will continue into next year.”

Colbert said everyone is worried about what the budget will look like for next year and whether dramatic spending freezes will become more common. But faculty and staff are keeping things in perspective, he said.

“What we’re all thinking, though, is that as compared to people on campus

losing their jobs and unemployment over 10 percent across the state, we

don’t have it so bad,” Colbert said. “We can handle this.”

Staff Writer J. Brian Ewing contributed to this report.

Contact Joe Killian at 373-7023 or joe.killian@news-record.com

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