CHARLOTTE — The UNC System Board of Governors approved a new funding model last month that shifts the focus from enrollment numbers to performance metrics such as graduation rates and student debt levels.
This change aims to reward campuses for their achievements in these areas rather than simply increasing student numbers.
According to the Charlotte Observer, under the new funding methodology, UNC Greensboro will receive an additional $1.7 million, while NC State University will gain $116,000 in funding.
The new funding model involves a $30 million pool of funds contributed by the campuses themselves, based on their operating revenues and state appropriations. The board says this pool is intended to be a recurring budget reduction for each school, with the opportunity to earn back the funds based on performance.
For example, the Observer reported Appalachian State University will contribute about $1.5 million to the pool and is expected to receive about $1.8 million for its performance, resulting in a net gain of $322,000. Similarly, NC State will contribute about $5.5 million and is expected to receive $5.6 million, making for a net gain of $116,000.
In contrast, UNC-Chapel Hill will contribute approximately $10.8 million to the pool but is expected to receive only $3.9 million, leading to a loss of about $6.9 million.
The model was designed to be funded on a recurring basis, but the General Assembly opted to provide nonrecurring funds for the 2024 and 2025 fiscal years, creating challenges in strategic financial planning for the campuses.
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