Reaves addresses layoffs, strategies

In response to the March 31 double-digit layoff, Chancellor Donald J. Reaves called an impromptu budget meeting in K.R. Williams Auditorium April 1.

He explained Winston-Salem State's recent reduction and discussed some of the fiscal details for the upcoming months.

Accordining to a University statement, 15 staff positions were terminated saving Winston-Salem State about $1 million.

Cuts in the 900 full-time faculty and staff were anticipated. Employees who were terminated received a 30-day notice, giving them time to transition out of WSSU, said Nancy Young, media and public relations director.

"Thursday was a difficult day for everyone," Reaves said, as he addressed the crowd of more than 100 employees present. The chancellor offered counseling for all faculty and staff.

According to Reaves the state budget is the culprit of much of the UNC School System's financial woes, citing that the problem derives from the revenue portion of the budget. Two large sources of revenue, which include stimulus money and a one percent sales tax that contributes to higher education, will both expire next year. Each source of income constitutes about $1 billion each to the school system's funds. Reaves said that these cuts will likely leave a significant gap between projected revenue and projected expenditures.

Reaves also pointed out that North Carolina has a constitutional obligation to ensure the budget is balanced. Therefore, he could not ensure the audience that there would be no more financial cuts.

Before General Administration can finalize an answer, the legislative process would have to run its course.

Reaves said that WSSU has been tasked to submit a report of various scenarios to General Administration for the current and upcoming fiscal year. Reaves also spoke on the fact that tuition has increased in the UNC System 39 percent over the past three years, and may likely see another increase in the coming year.

To date, WSSU is operating under a three and a half percent reduction in its budget.

"One bright spot," Reaves said, was that the University would more than likely exit the FY 2011 with no additional cuts. WSSU has experienced a $22 million budget cut over the past three years, but could peak at $32 million in the fourth year in a worse case scenario.  

The Chancellor did say that the UNC System could expect another budget slash somewhere between 16 and 20 percent July 1. To comply with these cuts, Reaves said that the University developed a three-prong attack to trim some of its nonessential expenditures. The first prong, which Reaves labeled functionality, consisted of various managers around the University finding  a way to perform the work within their units with fewer staff resources. What developed from that was the 15-employee layoff.

The second prong consists of a reduction in adjunct faculty.

The final prong is the elimination of more than 100 vacant employee positions.

With the reduction in adjunct faculty, full-time faculty members will be expected to teach more. Provost Brenda Allen addressed the need for faculty to teach more, stating that the University's commitment to educating students should not diminish due to faculty cuts.

Reaves said that the University does not plan to have another round of layoffs.