UNC Pembroke Chancellor Robin Gary Cummings.
Les High | Border Belt Independent
The University of North Carolina at Pembroke could face budget cuts after UNC System President Peter Hans said schools need to limit administrative costs.
Hans said earlier this month that the 17-campus system needs to reduce what he deemed unnecessary bureaucracy “and calibrate the university back towards its core missions of teaching, research and public service.” The cuts, he said, would be targeted at universities where administrative growth has outpaced the number of students.
Across the UNC System, payroll spending increased by 26% and enrollment grew by 2.3% between 2020 and 2024, according to a workforce report released in February. At UNC Pembroke, payroll spending increased by 22% while enrollment declined by 7%.
UNC Pembroke recognizes that “adjustments may be forthcoming” as state lawmakers work to pass a new two-year budget, university spokesperson Jennifer McCarrel said in an email for this story.
Salaries for academic administration, including admissions officers and academic affairs officials, increased at UNC Pembroke by 160% between 2020 and 2024, the biggest spike among employee sectors, according to the report. Eleven new employees were added during that time, doubling the size of academic administration, with an average salary of $91,182 by the end of 2024.
McCarrel said the increase in administrative spending was also the result of increased salaries for state employees mandated by the North Carolina General Assembly. Those pay raises have helped UNC Pembroke recruit and retain staff, McCarrel said.
“At UNCP, these increases were not just helpful, they were vital,” she said. “UNCP routinely loses staff to other institutions offering higher pay, and recruiting new employees to a rural setting is difficult without competitive compensation. Modest salary increases are one of the few tools we have to stabilize and retain the talented professionals who support our students and academic programs.”
The university’s “strategic focus on recruitment and retention” was also a factor, she said. The school added 16 advisers in the past four years to focus on student retention and timely graduation. More than half of the students — 56% — receive the Pell Grant, federal financial aid for undergraduate students who demonstrate exceptional financial need. The median household income among UNC Pembroke students is just over $43,000, among the lowest in the UNC System.
“These changes reflect a deliberate strategy to align academic infrastructure with student needs and programmatic expansion,” McCarrel said, “positioning the university to serve the region’s workforce and educational goals well into the future.”
Meanwhile, research salaries declined by 7% with the retirement of one of the university’s five research faculty members. Overall, UNC Pembroke added seven employees from October 2020 to October 2024, but its headcount is still lower than the 914 employees it had in 2019.
UNC Pembroke officials expect to see a boost in enrollment thanks to the university’s new health care programs. A master’s degree program in occupational therapy and a doctoral nursing program began this year. The College of Optometric Medicine will admit its first students by 2027, McCarrel said.
UNC Pembroke has the highest student-to-employee ratio in the UNC System, with 8.5 students per employee as of October 2024. The median ratio across the system is 6.9, according to data from the workforce report.
Hans told the UNC Board of Governors last week that the cost-cutting measures could be accompanied by changed policies, reformed regulations or retired “compliance regimes that have outlived their usefulness.”
UNC Pembroke, one of the most diverse colleges in the Southeast, dissolved its diversity office in August to comply with a new policy that eliminated diversity and inclusion mandates throughout the UNC System.
Hans said universities should aim to reduce administrative costs and focus on lowering student debt and helping students graduate on time. He said any cost-cutting measures would be targeted for each university, rather than a one-size-fits-all approach.
State budget proposals
The state Senate’s proposed budget, released last week, would reduce the UNC System’s academic funding by $20 million by the 2026-27 fiscal year.
The legislature increased funding for the UNC System in recent years, and increased state employee pay by 4% annually since 2021.
Under the Senate’s budget, UNC Pembroke would receive $95.5 million per year in fiscal years 2025-2026 and 2026-2027, $2.7 million less than the university received this year, according to a UNC System budget document.
The plan would raise out-of-state tuition from $2,500 to $3,000 per semester at the system’s NC Promise schools, including UNC Pembroke.
Gov. Josh Stein’s proposed budget includes $9.5 million in additional funding for the expansion of NC Promise. His budget also includes $5 million for a new college completion assistance program at UNC Pembroke, Elizabeth City State University, Fayetteville State University, North Carolina Central University and Winston-Salem State University.
“This investment will provide aid to students who are on track to graduate but are in danger of dropping out due to financial shortfalls,” Stein’s proposed budget says. He said he does not want finances to be the reason a student can’t finish college.
The House budget proposal is expected in late May before a final budget compromise is negotiated.
“The university will not speculate about potential cuts out of respect for the legislative process and recognizing that the state budget is not yet final,” McCarrel said. “UNCP is committed to working closely with President Hans and the UNC System Office to ensure that any changes to administrative spending are implemented thoughtfully and in a way that protects the university’s ability to serve students and fulfill its mission.”
