Over the last year, the Carolina Journal reported on the use of “reserve funds” in the state budget: billions of taxpayer dollars that are appropriated yet not accounted for in the general fund’s headline numbers. This has allowed sizable expansion in the state budget while keeping the headline budget number at a more acceptable level.
So, where is the money going, and how do reserve funds work?
Carolina Journal is examining some of these “reserve funds” to explain how the process operates.
In the last deep dive, the State Capital and Infrastructure Fund (SCIF) was examined. This week, another look at the SCIF examines appropriations specifically earmarked for the University of North Carolina (UNC) System.
Examining the North Carolina House of Representatives Appropriation Committee Report on the Current Operations Appropriations Act and the North Carolina Senate Appropriations/Base Budget Committee Report on the Current Appropriations Act will highlight unique expenditures in each proposal and similar expenditures worth examining.
The House and Senate Appropriations Committee reports propose allocating the same dollar amounts to the SCIF in FY26 and FY27; however, the distribution of these amounts differs between the House and the Senate. Both propose allocating $1.12 billion in FY26 and $1.16 billion in FY27. However, the Senate proposes more spending than the House. The Senate proposes spending $1.97 billion in FY26 and $1.52 billion in FY27, while the House only proposes spending $1.64 billion in FY26 and $1.45 billion in FY27.
The SCIF currently has a balance of $4.16 billion.
“The Senate recommends using SCIF funds to support 35 capital projects across the UNC System during the biennium, including a $10 million increase for constructing the ECU Brody School of Medicine, a provision absent from the House budget,” Joseph Harris, fiscal policy analyst for the John Locke Foundation, told the Carolina Journal. “The House proposes directing SCIF funds to 41 capital projects within the UNC System over the biennium, seven of which were not included in the Senate’s recommendations.”
The Senate only has one line item, which is unique. The Senate proposes appropriating an additional $10 million to the East Carolina University (ECU) Brody School of Medicine.
The House, however, has several appropriation line-items unique from the Senate. First, the House proposes appropriating $12 million in FY26 and $8 million in FY27 for the Appalachian State University (ASU) Innovation Campus Conservatory addition.
Additionally, the House proposes $12 million in FY26 to Elizabeth City State University (ECSU) for safety and security.
$2.2 million is proposed over the biennium to the North Carolina School of Science and Mathematics (NCSSM) for temporary housing. Also, $6.5 million is proposed in both FY26 and FY27 for the North Carolina State University (NCSU) advanced research and test reactor.
Additionally, $5 million is proposed in FY26 for an engineering classroom at NCSU.
Another $3 million is proposed to the Carol Belk Theatre at the University of North Carolina at Asheville (UNCA).
Finally, the House proposed $1 million in FY26 and $1 million in FY27 for UNC System office capital project management positions.
The House and Senate committee reports include additional line items worth noting: $8.2 million in FY26 and $20.2 million in FY27 for renovations to the science building at ECU.
Additionally, significant funding is proposed for student housing builds and renovations.
$24 million in FY26 and $28 million in FY27 for student housing at NCSU.
$27 million is proposed in FY26 for renovations to student housing at NCSU. Poe Hall at NCSU is proposed to receive $25 million in FY26 and almost $75 million in FY27.
NCSU veterinary school is proposed to receive $35 million in both FY26 and FY27.
The University of North Carolina at Pembroke (UNCP) health science center is proposed to receive $30.5 million in FY26 and $24.4 million in FY27.
The KR Williams Auditorium at Winston-Salem State University is proposed $24.4 million in FY26 and $14.7 million in FY27. PBS North Carolina is proposed $10 million in FY26 and $7.3 million in FY27.
Both House and Senate proposals include a line item with different spending amounts proposed. The House proposes appropriating $1 million in FY26 for the NCSSM academic commons.
The Senate, however, proposes spending $1 million in FY26 and $9 million in FY27.
These are just a few highlights from the many SCIF appropriations to the UNC System.
The post Reserve Fund Spotlight: SCIF-UNC appropriations first appeared on Carolina Journal.