Fayetteville State University (FSU) officials are planning to layoff personnel to compensate for a probable 2 to 6 percent reduction in state budget funding in fiscal year 2013-14. The university is estimating around $1 million to $4 million worth of cuts in state funding.
"What that means for us is that the reduction will come out of our base budget," said Carlton Spellman, interim associate vice chancellor for business and finance.We are already developing plans for each division. We are having individual meetings, and the business office is giving recommendations to each division to come up with the best way to absorb these cuts."
The officials say that around 70 percent of the university's allocated budget is diverted for salaries.
For the past few years, the university has tolerated budget deficits through its operations budget.
"We are so flat now that we can't do that anymore," said James Anderson, FSU's Chancellor."We are going to have to most likely reduce personnel."
This is not the first time FSU is facing a budget crunch. This year, the state allocated 4.3 percent less because of declining enrolment, which is equivalent to a loss of $2.1 million. Similarly, the university faced a shortage of $8.4 million in other funds last year.
State legislators have a July 1 deadline to resolve the House and Senate budgets, Anderson said.
"In some budgets, the UNC system fairs better than other budgets," he said. "So, we are hoping that we come out of it looking good."
