Virus pandemic continues to hammer universities’ finances

RALEIGH, N.C. – The coronavirus pandemic is continuing to cause economic hardship for some of North Carolina’s universities.

The Raleigh News & Observer reported Thursday that N.C. State has announced new employee furloughs and salary cuts. And administrators at the University of North Carolina warned of similar actions as revenues drop.

Leaders at N.C State said temporary furloughs and salary cuts are the result of a “sharp reduction in revenue” this fall in areas that include university housing, campus dining facilities and transportation.

The school in Raleigh shifted to online learning and closed dorms this fall. So far this semester, revenue is down $75.4 million. That’s a 61% drop for affected departments.

UNC is facing potential revenue losses of $300 million this fiscal year. It has been trying to save money by limiting new hires and restricting spending on events and travel. There also have been furloughs and salary reductions in some auxiliary units

The $300-million figure includes financial hits to campus housing, dining and health care.