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Igniting innovation, cultivating community

Board of Trustees Meeting

February 6, 2020

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Critical impact of prolonged budget impasse on NCSSM

Inability to make planned repairs to campus or adequately address facilities emergencies

No salary increases for employees

NCSSM-Morganton timeline

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Critical impact of prolonged budget impasse on NCSSM

Inability to make planned repairs to campus or adequately address facilities emergencies:

Eliminate badly needed roof repair project because funding was need to address unanticipated steam leaks
Unable to renovate old student store space
$20,000 in available repair and renovation funding to address possible facilities emergencies

$2 million in R&R funding had been allocated for NCSSM in the 2019-2020 budget

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Critical impact of prolonged budget impasse on NCSSM

No employee salary increases:

Some other state employees received increases
Salaries not keeping pace with inflation
Impact on employee morale
Not helpful to reaching our own employee compensation goals

Must advocate for a minimum of a 4% salary increase for university employees in FY 2021

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Scenario 1

NCSSM delays the start date for the first residential cohort at NCSSM-Morganton to August 2022:

Merits of this scenario:

Newly hired faculty and staff will have the time needed to design and implement the backbone of the new campus inclusive of the curriculum design, student life infrastructure, business services, facilities management and other critical functions.
The construction phase would enjoy greater flexibility that would allow for the majority of all building and site work to be completed before students arrive on site.
Budget flexibility can be leveraged for construction using private dollars that have been committed to the project, but that will not be received until FY 2020-2021.
NCSSM will have appropriate time to conduct surveys and augment recruitment practice to build awareness and pipeline for new opportunities on the new campus.
Soft opening in 2021-22 (online, summer programs, J-Term)

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Scenario 1

NCSSM delays the start date for the first residential cohort at NCSSM-Morganton to August 2022:

Challenges created by this scenario:

The delay in opening for residential students may frustrate some stakeholders who have thus far invested time, energy and dollars into the project.
150 academically-talented students will not have the opportunity to enroll in the inaugural residential cohort of NCSSM-Morganton in August 2021.

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Scenario 1

NCSSM delays the start date for the first residential cohort at NCSSM-Morganton to August 2022:

Funding Requirements
Amount	Timing	Purpose
$250,000	February 2020	Non-recurring dollars to fund campus planning infrastructure
$1,408,631	July 2020	New recurring dollars to fund critical operations and personnel
$5,150	July 2020	Non-recurring dollars to fund technology needs
$1,981,188	July 2021	New recurring dollars to fund critical operations and personnel
$792,369	July 2021	Non-recurring dollars to fund start-up infrastructure needs

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Scenario 2

NCSSM maintains the start date of August 2021 for the first residential cohort at NCSSM-Morganton:

Merits of this scenario:

Honors the original timeline
Meets expectations set for constituents anticipating 2021 opening (students/families, local community partners, elected leaders….)

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Scenario 2

NCSSM maintains the start date of August 2021 for the first residential cohort at NCSSM-Morganton:

Challenges created by this scenario:

As observed by the State Construction Office and leaders within the UNC System, the construction timeline does not permit any significant room to flex if issues (weather delays, labor shortages, material shortages, etc.) disrupt the plans. Maintaining the schedule will continue to feature an exceptionally tight timeline for the campus to be cleared for occupancy by August 2021.
Challenge to fully design and deliver infrastructure that will provide the academic program backbone for the new course catalog, course request process, course registration system, advising, scheduling, transcripts, attendance, and data warehousing for 150 residential students in the inaugural class.
Recruiting and hiring excellent faculty and staff takes time. Funding must be in place before new positions can be approved, posted, and hired. It will be a major challenge to hire and onboard 50 new faculty and staff by June 2021 if operational funding is not approved and available until July/August 2020.
Inadequate timeline for certifying mentorship hosts and sites for real-world research, internship and entrepreneurial opportunities for the 150 residential students in the inaugural class.

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Scenario 2

NCSSM maintains the start date of August 2021 for the first residential cohort at NCSSM-Morganton:

Funding Requirements
Amount	Timing	Purpose
$500,000	February 2020	Non-recurring dollars to fund campus planning infrastructure
$1,408,631	April 2020	New recurring dollars to fund critical operations and personnel (with provision for carry forward)
$1,981,188	July 2020	New recurring dollars to fund critical operations and personnel
$797,519	July 2020	Non-recurring dollars to fund start-up infrastructure needs
$TBA	July 2021	New recurring dollars to fund critical operations and personnel
$TBA	July 2021	Non-recurring dollars to fund start-up infrastructure needs

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Next steps

Continue to work with President Roper and the UNC System office team to finalize and communicate the decision over the next two weeks regarding delaying the opening of NCSSM-Morganton for the first residential class to August 2022

Communicate decision:

BOT
BOG
Legislative leaders
Local champions and NCSSM constituents
Public (February 20)