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OPINION

Editorial: All state institutions should seek efficiency

Friday, July 24, 2009
(Updated 3:00 am)

Higher tuition, classroom cuts, fewer students admitted. Those actions, and other measures, have been discussed for months at UNC-Chapel Hill while state legislators have wrestled with a severe budget crisis.

The impact at Carolina and other state university campuses will be real. But a report by Bain & Co., a business consulting firm hired to examine UNC-Chapel Hill's operations, identifies tens of millions of dollars in potential savings.

Its findings indicate the state's flagship university has layer upon layer of management, misses opportunities for operational efficiencies and is increasing its administrative spending per student at a faster rate than growth in academic expenditures.

The good news is that the university sought this examination and, Chancellor Holden Thorp pledges, will begin immediately to get its $2 billion house in better operational order.

The bad news is it hasn't happened sooner -- where's the State Auditor's Office been? -- and that other large public institutions aren't doing exactly the same thing. While the governor and General Assembly have been cutting programs and raising taxes, how much money could they save by working smarter?

In comments about the Bain report, Thorp wrote: "Implementing the recommendations described here would allow us to prepare for additional cuts without affecting research and teaching. Second, public confidence in the way that universities are managed is strained."

Exactly. Cutting unnecessary spending will allow the university to fund its important activities, research and teaching, and restore faith with taxpayers. That lesson can be applied across state government.

The Bain report cites multiple layers of supervision at Carolina, sometimes 10 deep, with many managers directing three or fewer employees. Fewer supervisors with more responsibility could improve efficiency and save money. Bain pointed to the more than 100 academic centers and institutes on campus and found that many have their own support services, which could be combined. It faulted a lack of connectivity and coordination among some offices and programs, creating confusion and redundancy.

Thorp, a year into his job as chancellor, greeted this report positively.

"I place a lot of emphasis on the importance of this work, especially because of the budget constraints and public scrutiny we face now," he wrote. "There is no better time for us to embrace new ways of doing things -- especially if they will improve how we fulfill our mission."

More leaders should share his attitude.

Comments

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igliigli

July 24, 2009 - 7:57 pm EDT

When are the members of the UNC Board of Trustees going to quit focusing on free sports tickets and concentrate on their job managing the University?

1234

July 25, 2009 - 9:51 am EDT

They use many "preferred alternates", paying much more that other equal products...they also do not follow State law: SESSION LAW 2004-124 HOUSE BILL 1414

PART VI. GENERAL PROVISIONS

PREFERENCE GIVEN TO AMERICAN‑MADE PRODUCTS
SECTION 6.1. Article 3 of Chapter 143 of the General Statutes is amended by adding the following new section:
"§ 143‑59.1A. Preference given to products made in United States.
If the Secretary of Administration or a State agency cannot give preference to North Carolina products or services as provided in G.S. 143‑59, the Secretary or State agency shall give preference, as far as may be practicable and to the extent permitted by State law, federal law, and federal treaty, to products or services manufactured or produced in the United States. Provided, however, that in giving such preference no sacrifice or loss in price or quality shall be permitted; and provided further, that preference in all cases shall be given to surplus products or articles produced and manufactured by other State departments, institutions, or agencies which are available for distribution."

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