State Budget Update

Please read this message from Dr. Roper.

July 1, 2010

Dear Colleagues:

Yesterday, Gov. Perdue signed the North Carolina State budget for the new fiscal year that begins today.

We appreciate everything that the Governor, the General Assembly, President Bowles, Chancellor Thorp and the UNC Health Care Board members have done to advocate for us in these challenging economic times.

We are grateful for the support of the people of North Carolina. Our mission remains unchanged – we will continue to provide the best possible care to our patients, to move forward with groundbreaking research, and to train the next generation of health professionals.

Below is a summary of the budget items that affect us. The leaders of UNC Health Care and the UNC School of Medicine are working to understand the specific provisions of the budget, and we will provide more information when it is available.

Budget items affecting UNC Health Care and the UNC School of Medicine:

  • The State appropriation to UNC Hospitals, which helps offset the cost of indigent care we provide, was reduced on a one-time basis by $8M. The appropriation for the new fiscal year is $36M.
  • The State will continue to fund its $50M annual commitment to the University Cancer Research Fund.
  • In a message to UNC-Chapel Hill yesterday, Chancellor Holden Thorp said, “Cuts to the UNC system for the 2010-2011 fiscal year will include a $70 million reduction in the operating budget, and although we don't know exactly what that will mean for our campus, we don't think the cuts will dramatically exceed the five percent level we anticipated.”

    We are working with the Chancellor and General Administration to understand exactly how these cuts will affect the School of Medicine.
  • The new State budget has limitations on the ability to give pay raises, and it will take us a while to get full clarity on these issues.

    Given the serious economic challenges that our State government and our fellow North Carolinians face, we take renewed encouragement from the support we have been given. We will continue to advocate for all our colleagues in this challenging time.

Thank you for all you do – day in and day out.


William L. Roper, MD, MPH
CEO, UNC Health Care System
Dean, UNC School of Medicine

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