Tar Heel Trough

RALEIGH, NC, March 1 – A week after Gov. Mike Easley released his record-setting $20 billion budget, legislators were at work dissecting the proposal.

Members of Easley’s budget team were in the General Assembly Tuesday and Wednesday providing legislators details of the proposals included in the budget for the 2007-09 biennium. With Easley’s budget being released last Thursday, it was difficult for appropriations meeting to start until now, because members typically leave Raleigh following Thursday’s sessions.

Easley’s budget, as has been the case throughout his administration, calls for increases in the spending on education, which comprises 58 percent of the governor’s budget. The University of North Carolina would receive an appropriation of $2.7 billion, an 11.3 percent increase from the 2006-07 appropriations. The percent increase far outpaces those of other branches of governments.

Community colleges would receive an appropriation of $964 million in Easley’s recommendations, a 5 percent increase.

Among the new spending request for the UNC system is a scholarship grant for low-income students. Called the Education Access Rewards North Carolina (EARN) Scholars, Easley proposes spending $150 million, during the course of the biennium, on the scholarship.

According to budget information, the scholarship would give $4,000 per year to approximately 25,000 students who are from families at approximately 200 percent of the poverty level. A student would be eligible to receive funding for two years. The scholarship would cover costs not covered by Pell Grants and other financial aid programs, according to Kristen Crosson of the Office of State Budget Management. Students who receive funding would have to work at least 10 hours a week.

Crosson said the governor’s office worked with the UNC and the State Education Assistance Authority to determine the number of students that could receive funding.

Easley’s budget also calls for $2.18 million in spending on a pilot program at seven campuses to better prepare students for college. The program would provide $250,000 in start-up funds to Elizabeth City, Fayetteville State, NC A&T, North Carolina Central, UNC-Pembroke, Western Carolina, and Winston-Salem State. Each school would target first general college students or students needing additional preparation for college. Students would live on campus throughout the summer and enroll in courses for credit.

Part of the $2.18 million ($630,000) would go towards plans to improve graduation and retention rates at ECSU, Fayetteville State, NC A&T, Western Carolina, and Winston-Salem State. The funding would go towards implementing plans on those campuses established at North Carolina Central and UNC-Pembroke.

Among other spending in Easley’s proposal for the UNC system is increased funding for online education programs. Easley is recommending funding ($4.2 million total) for a UNC initiative, University of North Carolina Online, that would create a single access point for the system’s online degree and certification programs.

Easley’s budget plan also calls for $1.6 billion in capital improvements, which could be part of a bond referendum in November. The General Assembly would have to approve placing the bond on the November ballot.

UNC construction projects comprise $487 million of the $1.6 billion and involve 12 of the 16 campuses. Included in the projects is $87 million for construction of a School of Dentistry at East Carolina University. The UNC Board of Governors approved creating a School of Dentistry at ECU in November.

A meeting is scheduled for Thursday morning to further discuss the capital appropriations request.

Construction money for the community colleges was not included in the bond package, because responsibility lies with the counties to provide for community college facilities needs. However, Easley did provide funding to increase online education offerings through the community colleges, as well as the UNC system.

Easley seeks more than $6 million in online education programs through the community college system, including $3.8 million to improve data connectivity available to facilitate online courses sharing with the UNC system. He also seeks $2 million for the University of North Carolina Online project, which would create a one-stop access point for UNC online course offerings.

Easley’s budget also proposes a 2.5 percent salary increase for faculty and professional staff across the community college system. The cost of the salary increase is $19.5 million. It would be in excess of the statewide salary increase of 2.5 percent.

Shannon Blosser works with the John William Pope Center for Higher Education Policy.