18AThe Daily Tar HeelThursday, August 30, 1990
Outs
of the General Assembly's measures to
balance the budget have only delayed a
solution to the problem.
- "We took some short-term steps in
1 989 and 1 990 to avoid a General Fund
tax increase," he said. "That just means
you still have the same problems next
year."
Money is allocated by the General
Assembly on an annual basis to the
University, making it dependent on the
state for about 40 percent of its funding.
For the past three years, North
Carolina's financial difficulties have
translated into cuts in UNC's budget.
This year the reduction totaled 4.6
percent, plus an increase in student fees
and out-of-state tuition, to help com
pensate for the projected $336 million
shortfall in state revenue.
The 4.6 percent reduction in the
University's funds comprises two ma
jor cuts a 3 percent chunk out of
UNC's base budget and a 1.6 percent
cut in its cash allotment from the state.
The cut in cash allotment could
fluctuate each quarter depending on
North Carolina's financial status, Crotts
said.
"If it were decided in January or
February of next year that more money
is on the table then they (the N.C. General
Assembly) could increase fourth-quarter
allotments, but it's not very likely," he
said.
The General Assembly may never
replace the 3 percent deducted from the
University's base budget, Crotts said.
"It is the intent of the legislature to have
as many of the cuts as possible be per
manent." In fact, some legislators are concerned
that the cuts they have made from UNC's
budget may not be enough, he said.
'They're asking, 'Are we really making
5 percent cuts?'"
Newlin said UNC and all other state
agencies must return all unspent money
to the state at the end of each fiscal year,
thereby giving the state legislature a
financial cushion on which to begin
budget plans for the next biennium. But
by not allocating money to the Univer
sity for vacant positions this year, the
General Assembly may receive less
money in reversions at the end of the
fiscal 1991.
The UNC Management Flexibility
Bill, which begins July 1, 1991, will
affect the University monetary rever
sions to the state in much the same way
as cutting unfilled positions, he said.
Providing the University with more
control over its money will reduce the
amount of money UNC must return to
the state and increase UNC's financial
efficiency, he said.
One of the bill's changes will allow
schools to keep more overhead receipts,
which are allowances for the indirect
cost of research that traditionally have
reverted to the state. Another change
will require the General Assembly to
give refunds to the University for sales
and use taxes paid on grants and con
tracts, which North Carolina does for
private institutions like Duke.
The General Assembly could cut
more from UNC's base budget in
coming years to compensate for smaller
reversions, but the likelihood of such
action is uncertain, Crotts said.
"All we can do is tell you what the
numbers show," he said. "But the po
tential for more spending cuts is defi
nitely on the table. There aren't any
sacred options. There aren't any sacred
institutions." ,
General Assembly members are not
singling out the University for budget
cuts, but are only performing their jobs,
Newlin said.
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"I don't think the legislature wants to
reduce the University 's budget," he said.
"The difficulty is that while the chan
cellor, the professors and the students
know the needs at Chapel Hill, the
General Assembly sees the needs of the
state's public schools, its prisons and
other areas. And they hear from me and
you, from people saying, 'Don't raise
taxes.'"
Hardin said the responsibility for
improving the University's budget
situation is twofold. The state must
decide to get the revenues that the
University needs, and members of the
University community must work to
make their plight known to the General
Assembly, he said.
from page 1A
"The most important thing is for the
faculty and the students to talk to their
representatives, to tell thein how im
portant the University is and how much
it has been hurt," he said. '.'It's grassroots
politics."
Gillian Cell, dean of the College of
Arts and Sciences, said she was opti
mistic about the University's ability to
persevere through the tough times it
faces.
"We need to emphasize that the in
stitution is strong, that it has gone
through bad times before," she said. "If
we allow ourselves to become de
pressed, then we will do great damage
to ourselves."
H
elms claims approva
of dissent with dignity
From Associated Press reports
DUNN, N.C. Sen. Jesse Helms,
R-N.C, says he doesn't mind dissent
ers so long as they are dignified.
Helms, making a campaign appear
ance Tuesday in Dunn, told protesters
from nearby Campbell University he
respected their right to dissent.
Helms made his comments before
entering a private $100-a-plate fund
raising dinner at the Woman's Club,
The News and Observer of Raleigh
reported Wednesday.
The group of seven neatly dressed
Campbell students carried signs reading,
"I'm a Campbell liberal" and "Freedom
of Choice."
Helms said: "We can be friends
anyhow, will you shake hands with me?"
One young woman replied, "I'll shake
hands with anyone."
Added protester Jeff Weeks: "I re
spect you, but I just don't agree with
you."
Helms said: "Well, I'll take that. Keep
on ticking. Everybody's got to be
somewhere."
Afterward, Helms said he didn't know
if protesters helped or hurt his campaign.
"I'm glad to see people express
themselves if they do it with dignity,
and that's what they were doing," he
said. "They don't support me, fair
enough. A lot of people don't support
me. I just hope one more than 50 percent
of the people do support me."
Helms, who used to be a trustee at
Campbell, is running for re-election
against Democrat Harvey Gantt.
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History Lessons
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