North Carolina State’s auxiliary services departments, such as student housing and dining, may have to furlough employees and enact salary reductions due to a 60% decline in department revenues. | Photo Courtesy of NC State
North Carolina State’s auxiliary services departments, such as student housing and dining, may have to furlough employees and enact salary reductions due to a 60% decline in department revenues. | Photo Courtesy of NC State
North Carolina State University is planning to furlough an unknown number of employees and reduce salaries after saying that the institution’s revenues for auxiliary services are down 60% during the economic crisis created by restrictions related to the COVID-19 pandemic.
Revenue loss in auxiliary services such as student housing is estimated to be $75.4 million, university officials said in a Sept. 24 release.
Under North Carolina law, state appropriations or tuitions cannot fund departments such as University Housing, NC State Dining, Transportation and the McKimmon Center for Extension and Continuing Education.
According to the release, those types of departments receive funds from profits from the sales of goods or services related to the department.
“Auxiliary units have worked diligently to consolidate services; reduce hours; close facilities; enact hiring, travel and spending freezes; renegotiate service contracts and, where possible, transition from in-person services to alternative online services,” the release quoted from a message from university leadership.
Yet, those measures have not sufficiently made up the financial deficiencies, and additional measures are now required, according to the release.
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