Legislative Bulletin

APRIL 20, 2001



Budget ax may fall on education
The public schools, universities and communities colleges have identified $290 million that could be cut from their budgets to help the state close a hole in next year’s budget. However, education leaders warn that cutting their budgets by that amount would force 2,500 job cuts and wipe out much of the progress the state has achieved in school improvements.

The education community was staggered by news that the heads of the House and Senate appropriations subcommittees on education last week had quietly directed the State Board of Education, the Department of Community Colleges and the UNC System to identify where $290 million could be cut from their budgets. The k-12 schools and the universities each were told to identify $125 million in cuts while the community colleges were told to find $40 million in reductions.

The three systems responded to the requests this week by identifying programs and budget line items that could be reduced. However, the responses came with bleak warnings about the consequences of reductions of that magnitude.

The Department of Public Instruction released a letter by State Board of Education Chairman Phil Kirk and state Superintendent of Public Instruction Mike Ward that said the requested cuts threaten the progress made in education. "Such reductions run counter to Gov. Easley's promise that services to children would not suffer as the state went about the business of identifying sources to balance the budget," they wrote. Read the text of that letter.

Kirk and Ward said in the letter that the board is not endorsing any of the cuts and they are not prioritized.

Sen. Walter Dalton (D-Rutherford), a co-chair of the Appropriations subcommittee on education, said he hopes the cuts won’t be needed but the legislature won’t know for sure until next month as the state nears the end of its fiscal year. But he said the legislature had to draft a balanced budget and that education is where most of the spending goes. Dalton said House and Senate leaders are looking for $376 million in cuts from next year's continuation budget because they are unsure if Gov. Easley can deliver on all the revenue projected in his proposed budget, including $150 million by closing tax loopholes, $89 million through efficiencies in state government, and $137 million in revenue collections that are higher than projections by the legislative staff.

Gov. Easley "supports an increased investment in the classroom and not cuts,” said his communications director, Cari Hepp. “While he believes it is important to find efficiencies and savings, he has said repeatedly that we cannot let this budget shortfall become an education shortfall."

UNC President Molly Broad said if she had to cut $125 million in spending, the 16 campuses “would be forced to abolish more than 1,800 positions, including over 700 faculty positions university-wide." President Martin Lancaster said the community college system would lose the equivalent of 452 full-time instructors if it had to reduce spending by $40 million. The community colleges also would have to raise $10.2 million by increasing tuition. The State Board of Education said it would have to cut about 360 classroom and central office positions. See the chart of possible DPI budget cuts.

 

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