FY21 Budget Reduction

WHAT WE DID

  • The University proactively instituted a 5% non-recurring general funds budget reduction to ensure UNC Charlotte is well-equipped to respond to any reduction in general fund resources in fiscal year 2020-21, which ends on June 30, 2021.

  • Much of the reduction was absorbed centrally, but each division was responsible for identifying cuts for a certain portion of the reduction.

  • The identified funds were moved from divisional budgets to a centralized budget in anticipation of future requests or needs.

WHY WE DID THIS

  • A proactive budget response in fiscal 2020-21 prepares the campus for potential recurring budget reductions in fiscal 2021-22. Remember! Having a plan is better than not having a plan. When more funds have been spent it is harder to find funds to cut or return.

  • The effects of the recession on North Carolina’s budget will become clearer in the months ahead. This is the responsible decision for the University to ensure it can meet any request made by the System or the state going forward.

  • The University incurred significant expenses and losses as a result of the pandemic. We expect we will incur more in the year ahead. We must make adjustments in other areas to account for these costs.

  • We are cautiously optimistic that another federal stimulus package might help mitigate some of the financial impacts on the University, but it will not solve all financial concerns or eliminate the need to take proactive measures.