Tom Ross, president of the 17-campus UNC system, said Monday that the university had become more efficient and was working to do more.
Ross said UNC has closed more than 300 programs in the last five years and that the cost per degree granted had declined by 17 percent in recent years.
"We've been doing almost all of the things that people suggest," Ross said at a meeting with journalists at Gravy restaurant in downtown Raleigh. The gathering was hosted by the UNC Program on Public Life.
Ross said some administrative functions, such as payroll and procurement, were being handled centrally. The UNC system is considering determining residency questions in one office. Thousands of students apply to more than one UNC campus; from time to time, UNC campuses have issued different decisions as to whether an applicant was considered in-state. "That's embarrassing," Ross said.
Ross said some course duplication was appropriate because some courses, such as history and economics, should be taught at all campuses. He also said it was appropriate to train some occupations, such as teachers and health-care workers, across the state so that those regions have a supply of those workers.
UNC gets about $2.5 billion from the state, Ross said. UNC's budget was cut in 2011 by about $400 million a year. Gov. Pat McCrory's proposed budget calls for cutting UNC's budget by another $140 million or so in the next budget year, which begins July 1. Said Ross: "We definitely want to get the size of the cut down."
--John Drescher

Dear Carolina faculty, staff, students, alumni and friends,

Today I am announcing what has been the hardest decision of my life ... my intention to step down as your chancellor effective June 30, 2013. I've decided that this is best for the future of Carolina.

I told UNC President Tom Ross yesterday of my decision. I also let him know that I am willing to stay longer, if needed, to avoid any gap in leadership until the Board of Trustees, President Ross and the Board of Governors can name a successor.

I will always do what is best for this University. And what is best right now is for me to make plans to step aside. This wasn't an easy decision personally. But when I thought about the University and how important it's been to me, to North Carolinians and to hundreds of thousands of alumni, my answer became clear.

Over the last two years, we have identified a number of areas that need improvement. We have a good start on reforms that are important for the future of this University. I have pledged that we will be a better university, and I am 100 percent confident in that. We still have work to do, and I intend to be fully engaged in that until the day I walk out of this office.

Together, we have accomplished so much. Student applications are up by
24 percent. Our faculty has made us a top 10 university in research funding. We have made excellent progress with faculty retentions. More alumni and friends made gifts to the University last year than ever before. We have pulled the campus through the financial crisis, emerging as a stronger institution. And we have launched a campuswide initiative to define our vision of the 21st Century public research university.

It has been a privilege and honor to lead this great University, and I look forward to continuing to work with you. My love for Carolina, where I have invested three decades of my life as a student, faculty member, researcher and administrator, has only grown deeper with the time I have spent as your chancellor.

With great appreciation for all of you and what you do for Carolina,

Holden Thorp
 

This just in from UNC News Services:

UNC Chancellor Holden Thorp intends to step down at the end of this academic year because he says it’s best for the future of the University.

Thorp notified UNC President Tom Ross on Sunday (Sept. 16) of his intent to resign, effective June 30, 2013. Thorp told Ross that he is willing to stay beyond June 30, if needed, to avoid any gap in leadership until a successor can be in place.

“Chancellor Thorp’s love of and devotion to UNC-Chapel Hill are beyond question,” Ross said. “I have accepted his announcement with considerable sadness, but fully understand he is acting in what he believes to be the best interests of UNC-Chapel Hill and the entire University...

UNC system President Tom Ross is defending a proposal to remove university workers from the State Personnel Act.

In tomorrow's N&O and Chapel Hill News, the president of the university system, says having one personnel system for workers exempt from and currently subject to the State Personnel Act would benefit everyone.

“We’re not interested in taking away the rights of our SPA employees,” he says. “Unfortunately some outside groups have attempted to create that fear. What we want to do is create flexibility to do more for our employees.”

Senate Bill 575 would put 22,000 workers under the UNC Board of Governors. The bill's dead this session, but its HR change could be inserted in the final budget bill. Among other provisions, the board would adopt policies on compensation, health and disability benefits, and “any other human resource policy the Board deems appropriate to promote the recruitment and retention of capable, diligent, and effective employees.”

Last week, a group sent a letter signed by 130 individuals and organizations to UNC-CH  Chancellor Holden Thorp, asking him to publicly state where he stands and to speak at a rally at 4:30 p.m. Wednesday outside South Building on the UNC-CH campus. We'll be at the rally and have a report Thursday in print and online. 

Tom Ross, president of the 17-campus UNC system, for years worked on the first-down measuring chain crew at high school football games. "It gave me the best political ad I ever ran," Ross, a former Superior Court judge, told Carolina Alumni Review. "I was running for re-election as a judge, and the caption was, 'Keep the judge on the chain gang.' That's as good as it gets."

In an interview at The N&O last week, Ross said he worked a college game last year when he was president of Davidson College.

There has been much speculation among UNC-Chapel Hill football fans about Ross' role in the dismissal of former coach Butch Davis. Ross told The N&O that he talked with UNC-CH Chancellor Holden Thorp a number of times but it was Thorp's decision to fire Davis. "I did not give any advice to him one way or another," Ross said. For more on Ross' comments, click here.

--John Drescher

The UNC Health Care System has transferred $20 million to the main UNC system to help ease the universities' pain from state budget cuts.

UNC Health CEO Bill Roper announced the transfer at a joint meeting of the UNC Health and Rex Healthcare boards today in Raleigh.

Auditors are still tallying final results for the fiscal year that ended June 30, but UNC Health had a good year with its operations and investments, said spokeswoman Karen McCall. The health system expects to report an operating margin of 5 percent to 6 percent, better than the year before.

UNC President Tom Ross and UNC Chapel Hill chancellor Holden Thorp had requested the money as they reviewed the cuts the system was facing, McCall said. Last week, Ross announced that the UNC system would allocate $414 million in cuts across its system, with UNC Chapel Hill taking an 18 percent hit and N.C. State taking a 15 percent reduction.

"This is a good example of how our system is trying very hard in these tough times to stay together," McCall said. "This is an opportunity to help in an extraordinary time."

The UNC Health Care System's board announced this afternoon that it formed a committee to review WakeMed's offer to buy its Raleigh subsidiary Rex Healthcare for $750 million.

UNC Health officials reiterated that they aren't interested in selling Rex, but will review the hostile takeover bid "in accordance with our fiduciary responsibility."

The committee is expected to review WakeMed's proposal for several weeks and then make a recommendation to the full board. The committee includes D. Jordan Whichard, who will be chairman, as well as board members Lisa Fischbeck, Andrew Greganti, Dale Jenkins, James Speed and UNC Chapel Hill Chancellor Holden Thorp.

"We strongly believe that Rex is an integral part of UNC Health Care," said UNC Health board chairman Richard Krasno, in a prepared statement.

WakeMed leaders are urging UNC officials to begin negotiations on their hostile $750 million bid to buy rival Raleigh hospital Rex Healthcare.

In a letter delivered Wednesday to UNC president Tom Ross, WakeMed CEO Bill Atkinson and chairman Tom Oxholm wrote that they want to close the acquisition "on or before" Dec. 31.

"We think it could be done by the close of the year, assuming everyone wants it to happen and we put teams in place on both sides to make it happen," Atkinson said in a phone interview today.

"We hope the state of North Carolina and UNC will look at this in a timely and fair and serious manner," he added. "We have a very viable proposal and it could be a big plus to the state of North Carolina economically."

Still, a sale is far from certain.

UNC officials have made clear that while they will review WakeMed's offer, they're not interested in selling Rex, which is a foundation of the UNC Health Care System's expansion strategy in Wake County. Ross had recently requested more information from WakeMed, which made the unsolicited offer to buy Rex last month.

UNC's top executive issued an official response this afternoon rejecting WakeMed's unsolicited offer to buy rival Rex Healthcare for $750 million.

The UNC Health Care System bought Rex in 2000 for $290 million, and is using the Raleigh-based hospital system to expand its operations in Wake County

Here is the prepared statement from UNC President Tom Ross:
 
"Today I received a letter from the CEO and the board chair of WakeMed proposing to purchase Rex Healthcare and all its assets from the UNC Health Care System for $750 million.  The letter offers few specifics and leaves many unanswered questions.
 
UNC Health Care and the UNC School of Medicine have a three-part mission:  providing high-quality medical care to citizens from all over North Carolina, regardless of their ability to pay; conducting cutting-edge research that improves patient treatment and care; and educating the next generation of physicians. 

Carrying out those core responsibilities in today’s complex world requires that we have strong partnerships with a wide range of schools, hospitals, researchers, physicians, and patients. 

That is why Rex and Chatham Hospital joined the UNC Health Care System, why we are expanding our medical school training in Charlotte and Asheville, and why we have a network of cancer researchers and clinicians throughout the state.
 
In this uncertain health care environment, it is critically important that we maintain a long-term vision for the UNC Health Care System that extends beyond the current budget crisis. 

Click read more to read the remainder of Ross' statement.

The leaders of the UNC system and its campuses turned precisely zero cartwheels Tuesday upon getting a look at the spending plan proposed by the House.

It calls for cuts of more than 15 percent to public universities. That's far too much, UNC President and others said.

Systemwide, that would lead to the elimination of 3,200 jobs, many of them filled, Ross said.

N.C. State Chancellor Randy Woodson said the cuts would force "large and dramatic change" to the entire system.

Stay tuned. The Senate budget, expected to be more friendly to universities, comes out next.