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Office of the Chancellor

State Budget Update

June 28, 2017

Dear Students, Faculty and Staff:

On June 28, 2017, the State of North Carolina passed a $23 billion state budget. State-appropriated funds comprise approximately one-third of NC State’s budget, so each year we monitor and advocate for what is best for our students and our university’s ability to create economic, societal and intellectual prosperity for the people of North Carolina and the country.

I am happy to share that this budget does not include a management flexibility reduction in Fiscal Year 2017-18 and funds several university priorities which enable us to advance our strategic objectives.

Faculty and staff will be pleased to see that the budget includes a $1,000 across-the-board salary increase for full-time SHRA university employees and a funding pool equivalent to $1,000 for each State-funded EHRA FTE; we are waiting on specific guidance from UNC General Administration. The budget also provides three annual leave days for all full-time employees. We appreciate the legislature’s recognition of our valuable faculty and staff.

Funding provided for university priorities includes:

  • Full funding for enrollment growth
  • Full funding for building reserves
  • $50.5 million for repairs and renovations
  • $2 million non-recurring for NC State’s participation in the National Institute for Innovation in Manufacturing Biopharmaceuticals in FY 2017-18
  • Funding for NC State’s Cooperative Extension, to include $700,000 continuing in FY 2017-18 and an additional $100,000 continuing in FY 2018-19
  • $5.1 million for the Food Processing Innovation Center, to be housed at the NC Research Campus in partnership with the College of Agriculture and Life Sciences, $700,000 of which is continuing
  • $1 million non-recurring for Faculty Recruitment and Retention

In addition to these, there are several special provisions that will affect NC State and the UNC system. These include:

  • Basing enrollment funding on verification of actual enrollment.
  • Requiring that the Board of Governors monitor the creation of new positions over $70,000 and any salary increase of more than 5% that would result in an annual salary of $100,000 or greater.
  • Directing the Board of Governors to study equal opportunity policies at each campus.

We appreciate the General Assembly’s recognition of our important work fostering research and innovation for real-world impact. Their support demonstrates confidence in our ability to tackle society’s grand challenges.

More specific details will be shared once the Board of Governors determines campus allocations and provides further direction.