11

BUDGETS &BUDGETS &PEOPLEPEOPLE

NC State UniversityNC State UniversityFaculty SenateFaculty Senate

Feb 10, 2009 Feb 10, 2009

22

Where the State of NC Where the State of NC GETSGETS its Money its Money ($21.3B in FY ($21.3B in FY 08-09)08-09)

Individual Income Tax, 55%

Corporate Income Tax, 5%

Sales & Use Tax, 26%

Other Taxes, 9%

Non-Tax Revenues, 5%

33

Where the State of NC Where the State of NC SPENDSSPENDS its Money its Money ($21.3B in FY ($21.3B in FY 08-09)08-09)

Public Education (Pre-K - 12), 37%

Justice/Public Safety, 10%

Health & Human Svcs, 25%

General Gov't, 2%

Reserves/Debt Svc, 7%

Natural/Econ Resources, 2%

Universities (UNC), 13%

Community Colleges, 4%

44

Where NC State UniversityWhere NC State UniversityGETSGETS its Money its Money ($1.14B in FY ($1.14B in FY 08-09)08-09)

State Appropriations, 46%

Tuition & Fees, 15%

Contracts & Grants, 23%

Federal Appropriations, 2%

Auxiliaries & Other, 14%

55

Where NC State UWhere NC State USPENDSSPENDS its Money its Money ($1.14B in FY ($1.14B in FY 08-09)08-09)

Salaries & Benefits 62%Supplies &

Materials 11%

Services 16%

Depreciation 5%Utilities 3%

Scholarships/Fellowships 3%

66

NC State UNC State UPersonnel Personnel (Approx 8,300 (Approx 8,300 Headcount)Headcount)

EPA 4000 48%

SPA 4300 52%

77

NC State UNC State UPersonnel Personnel (Approx 8,300 (Approx 8,300 Headcount)Headcount)

Tenured / Tenure-Track Faculty,

1600, 19%

Special Faculty, 850, 10%

EPA Professionals, 1550, 19%

SPA, 4300, 52%

88

NC State UNC State UPersonnel Personnel (Approx 8,300 (Approx 8,300 Headcount)Headcount)

SPA, 4300, 52%

T / TT Fac, 1600, 19%

Non-TT Fac, 850, 10%

EPA - Instruction, 1050, 13%

EPA - Research, 350, 4%

SAAO, 155, 2%

99

Budget Cuts Budget Cuts Do Impact PositionsDo Impact Positions

SPA: “Reduction In Force (RIF)”SPA: “Reduction In Force (RIF)”

EPA Non-Faculty: “Discontinuation of EPA Non-Faculty: “Discontinuation of Employment”Employment”

1010

SPA RIFs – Past 10 YearsSPA RIFs – Past 10 Years

0

10

20

30

40

50

60

70

FY98-99

FY99-00

FY00-01

FY01-02

FY02-03

FY03-04

FY04-05

FY05-06

FY06-07

FY07-08

FY08-09

todate

Due to Budget Cuts

Other Reason

1111

SPA: RIFsSPA: RIFs

• RIF Policies are State of NCRIF Policies are State of NC (not UNC System or NC State U)(not UNC System or NC State U)

• TempsTemps & & ProbationaryProbationary employees employees must go firstmust go first

1212

Who gets RIF’d?Who gets RIF’d?

Based on “business need” & relative Based on “business need” & relative contribution (employees’ skills, contribution (employees’ skills, knowledge, productivity / knowledge, productivity / “competencies”) “competencies”)

Length of service / seniority is Length of service / seniority is consideredconsidered

1313

SPA RIF PlanSPA RIF Plan

Departments submit written RIF Plan to HR Departments submit written RIF Plan to HR for review & endorsement for review & endorsement

RIF compliance reviewRIF compliance review Adverse impactAdverse impact Severance calculationsSeverance calculations OSP / OSBM approval OSP / OSBM approval At least 30 days’ noticeAt least 30 days’ notice Appeal rightsAppeal rights Position must be abolishedPosition must be abolished

1414

SPA Severance PaySPA Severance Pay

Payment calculation is based on:Payment calculation is based on: Total State Service + Total State Service + Age (over 39)Age (over 39)

+ Accrued Leave+ Accrued Leave Up to 6 weeks annual leave +Up to 6 weeks annual leave + Up to 5 weeks bonus leave +Up to 5 weeks bonus leave + Unused Comp timeUnused Comp time

1515

Re-EmploymentRe-Employment

SPA employees with past 24 months SPA employees with past 24 months of State service get priority State of State service get priority State reemployment reemployment

Human Resources provides job Human Resources provides job search assistance (SPA, also EPA) search assistance (SPA, also EPA)

1616

EPA Non-FacultyEPA Non-Faculty(Discontinuation of Employment)(Discontinuation of Employment)

““At Will” EPA: At Will” EPA:

Discontinuation is at discretion of Discontinuation is at discretion of Chancellor (delegated to Provost for Chancellor (delegated to Provost for most EPA Non-Faculty)most EPA Non-Faculty)

1717

EPA Non-FacultyEPA Non-Faculty(Discontinuation of Employment)(Discontinuation of Employment)

0

5

10

15

20

25

30

2004 2005 2006 2007 2008

Termination for Cause

Discontinuation, At Will

1818

Notice: Notice: EPA Non-Faculty, At-WillEPA Non-Faculty, At-Will

During During 1st1st year of employment: year of employment: At least 30 days (notice / severance)At least 30 days (notice / severance)

During years During years 2 & 32 & 3: : At least 60 days (notice / severance)At least 60 days (notice / severance)

During years During years 4 or more4 or more: : At least 90 days (notice / severance)At least 90 days (notice / severance)

1919

NOTICE: NOTICE: EPA Non-Faculty EPA Non-Faculty Contingent (“Soft-Funded”) Contingent (“Soft-Funded”) AppointmentsAppointments

Offers of employment are contingent Offers of employment are contingent on continued availability of fundson continued availability of funds

Notice is not required -- but Notice is not required -- but encouragedencouraged

2020

NOTICE:NOTICE:EPA Non-Faculty, Fixed TermEPA Non-Faculty, Fixed Term

May be separated ONLY at conclusion of contract May be separated ONLY at conclusion of contract period (except financial exigency)period (except financial exigency)

A contract of 1 year or lessA contract of 1 year or less: Advance written notice : Advance written notice that “No Subsequent Appointment will be that “No Subsequent Appointment will be Forthcoming” (NSAF) permitted, but not required Forthcoming” (NSAF) permitted, but not required

A contract of more than 1 and less than 4 yearsA contract of more than 1 and less than 4 years: : 60 day written notice that NSAF 60 day written notice that NSAF

A contract of 4 years or moreA contract of 4 years or more: : 90 days written notice that NSAF 90 days written notice that NSAF

2121

Financial ExigencyFinancial Exigency

Financial ExigencyFinancial Exigency is “a significant decline is “a significant decline in financial resources of the University that in financial resources of the University that compels a reduction in the institution’s compels a reduction in the institution’s budget.”budget.”

ChancellorChancellor decision; but requires advance decision; but requires advance notice to and approval by the notice to and approval by the PresidentPresident and and Board of GovernorsBoard of Governors

2222

SPA + EPA BenefitsSPA + EPA Benefits Leave PayoutLeave Payout

Unused Annual / Bonus / Comp Time (SPA)Unused Annual / Bonus / Comp Time (SPA) Sick time not paid out, but reinstated if rehiredSick time not paid out, but reinstated if rehired

Health InsuranceHealth Insurance On State Health Plan at time of separationOn State Health Plan at time of separation If past 12 months were State service If past 12 months were State service

Other Benefits: Other Benefits: Can elect COBRA continuationCan elect COBRA continuation

Unemployment InsuranceUnemployment Insurance: Eligible to receive : Eligible to receive

2323

Human ResourcesHuman Resources

SPASPA: Kathy Lambert 515-4277: Kathy Lambert 515-4277

EPAEPA: Laurie Textor 513-0765: Laurie Textor 513-0765

or or

Marc Okner 515-4300Marc Okner 515-4300