UNC Asheville announces limited layoffs amid $6 million budget shortfall

UNC Asheville announces ‘limited’ layoffs amid $6 million budget shortfall

ASHEVILLE, N.C. (WLOS) —

Just over two months since UNC Asheville announced it needed to take immediate action to address a $6 million deficit for the school’s current budget, the chancellor told the campus a “limited number of employees” had been let go.

In a letter to the university, shared with News 13 by UNCA’s Communication and Marketing department, Chancellor Kimberly van Noort said 12 active staff positions in Student Affairs, Academic Affairs, and the Office of the Chancellor were “identified” for “discontinuation.”

“I’m deeply disappointed that a reduction in force was necessary to help the University address a projected budget deficit in the next fiscal year, which begins July 1,” the chancellor wrote in her April 11 letter to university members. “We didn’t want to part with any of our valued colleagues, and we pursued every avenue to reduce the number affected in this difficult period.”

The chancellor added that all 12 employees have been offered “benefits support, help with resumes and job searches, and other assistance.”

The announcement comes after UNCA said it was facing a $6 million deficit for the current fiscal year, which ends June 30, 2024. The university said it risked adding $8 million to its deficit if the budget was not balanced for the 2025 fiscal year.

The chancellor told faculty and staff during a meeting on Feb. 6 that the university would be taking “immediate expense control measures.” At the time, the university’s statement did not specify what those exact measures would consist of, but noted that Budget & Finance would be “exploring tapping into any existing resources outside of our State funds, limited though they may be.”

Letter from the Chancellor

Dear Campus Colleagues,

With regret, I write to share that the University has formalized a limited number of employee separations as we continue broader efforts to stabilize our finances. My Update this week is longer than usual to detail this news, recap overall cost-management efforts, and preview next steps as challenging circumstances persist.

I’m deeply disappointed that a reduction in force was necessary to help the University address a projected budget deficit in the next fiscal year, which begins July 1. We didn’t want to part with any of our valued colleagues, and we pursued every avenue to reduce the number affected in this difficult period.

Our efforts involved a careful, campus-wide study of all our positions, allowing us to curb the number of employees facing separation. For the time being, we left open certain positions as people retired or departed for other opportunities. In other cases, we reassigned some people to different positions, and suspended or eliminated some unfilled roles, at least for the short term. In the process, we achieved substantial savings that helped us retain many of our colleagues.

Needing additional cuts, we identified 12 active staff positions in Student Affairs, Academic Affairs, and the Office of the Chancellor for discontinuation. Staff members holding affected positions in these units received separation notices this week. As a community that values care and compassion, we are extending them practical resources — including benefits support, help with resumes and job searches, and other assistance.

I’m grateful to and for each of these members of our community and for their many enduring contributions to UNC Asheville. Recognizing the significance of this moment, the University has made counseling and related services available to all faculty and staff. Those services are available through Human Resources at 828-251-6605 and online through the Employee Assistance Program.

As painful as these separations are, it’s important that we understand them in the context of the University’s financial reality and our extensive efforts to contain costs, minimize impacts on the workforce and student experience, and plan a more resilient future. A roughly 25 percent enrollment decline over the past five years and outmoded budgeting practices contributed to budget-deficit projections of $6 million for the current fiscal year and some $8 million for the next.

To prevent these unsustainable gaps and begin setting a firmer financial and programmatic foundation, we’re taking a four-step approach:

1. Tighten our immediate spending practices and contain any effect on faculty, staff, and overall operations. We focused tirelessly on this step over the past several months. Among our measures, we have indefinitely held open vacant positions, reduced travel costs, drawn more on trust and endowment funds when possible, and created a Fall 2024 academic schedule that relies heavily on permanent faculty.
2. Identify and finalize a limited number of employee separations, as necessary. This is the step we completed, with regret, this week.
3. Evaluate the University’s portfolio of academic programs.
4. Monitor enrollment and financial trends ahead of Fall 2025 and begin longer-term planning and visioning work. This step will continue from the spring into the fall. Our enrollment on August 30 — census day — will determine if we need additional adjustments at that point.

I know how incredibly difficult this is. As educators, we focus our energies and talents on growth. We never want to be in a position of scaling back and should seek to avoid employee separations to the greatest extent possible. Unfortunately, colleges and universities across the country are facing a range of financial pressures. We detail some of ours on the Asheville 2030 webpage.

As we explored cost-management options, it became clear that reducing our workforce is an unavoidable part of our path to operational sustainability. Going forward, we’re determined to strengthen the University through a long-range strategy and growth. Asheville 2030 is our comprehensive effort to engage the community in visioning this future. The work has begun with a survey — still available — and will eventually feature a series of community conversations.

As we’ve noted, by 2030 we want a sustainable enrollment of 3,800 to 4,000 students drawn to — and supported by — our commitment to the vision of an innovative public liberal arts and sciences university of the future. When opportunities to participate in the visioning process emerge, please join in. Our planning will be only as good as the extent of the community’s participation.

For today, I hope you’ll join me in thanking those directly affected by our reduction in force. We value all their contributions to our community and to our students. Thank you for your support and for your dedication.

Sincerely,

Kimberly van Noort, Ph.D.
Chancellor