NCCU financial concerns highlight broader funding challenges in UNC System

North Carolina Central University is facing growing financial pressure as UNC System leaders continue lobbying state lawmakers for enrollment funding during ongoing budget negotiations, according to reporting from WUNC News.

NCCU Chancellor Karrie Dixon told the UNC Board of Governors this week that additional state support is critical as the Durham-based HBCU works to strengthen its long-term financial position while managing campus growth.

“As our enrollment continues to increase, growth has already contributed to improve our CFI score,” Dixon said during committee meetings Wednesday. “However, that growth must be adequately supported in order to continue addressing NCCU’s enterprise risk, expand critical student support services, reduce reliance on non-state resources to sustain growth, and maintain the university’s positive financial trajectory.”

NCCU falls below UNC System financial benchmark

According to WUNC News, North Carolina Central was the only public university in the UNC System that failed to meet the system’s overall Composite Financial Index benchmark during the latest review period.

The Composite Financial Index, commonly referred to as CFI, is used by the UNC System to evaluate the financial health of its member institutions. The score is based on four categories:

• Primary reserve score
• Viability
• Return on net position
• Net operating revenues

UNC System Chief Financial Officer Jennifer Haygood said the industry standard is a CFI score above 3.0. Recent reports show NCCU hovering around 2.0 despite year-over-year improvement.

NCCU not alone among HBCUs facing financial pressure

While NCCU was the only institution below the overall benchmark, the WUNC report noted several universities — including multiple HBCUs — fell short in individual financial categories.

North Carolina A&T and Fayetteville State were among the schools that did not meet certain thresholds tied to reserves, debt management or operating revenue performance.

That context places NCCU within a broader financial narrative impacting public HBCUs across North Carolina. Many institutions continue balancing enrollment growth, deferred maintenance and rising operational costs while relying heavily on state appropriations and tuition revenue.

Chancellor Dixon points to infrastructure and cybersecurity needs

Dixon said additional funding would help NCCU address several pressing campus concerns, including deferred maintenance, public safety and cybersecurity infrastructure.

The university has experienced enrollment growth in recent years, but school leaders say maintaining that momentum requires greater institutional investment.

Haygood told board members the UNC System is also developing faster methods to monitor campus financial health instead of relying on data that can be more than six months old by the time reviews are completed.

State budget negotiations continue

UNC System officials said lawmakers have indicated support for enrollment funding as budget talks continue in Raleigh. Haygood told board members she hopes a finalized state budget agreement could arrive by mid-June.

For NCCU, the outcome could play a significant role in determining how aggressively the university can invest in student support services, campus improvements and long-term financial stability moving forward.

NCCU’s place in the larger HBCU funding conversation

NCCU’s financial situation also reflects a longstanding conversation around funding equity for historically Black colleges and universities.

Like many public HBCUs, NCCU serves a large number of first-generation and Pell Grant-eligible students while often operating with fewer financial reserves than larger flagship institutions. Even as enrollment rises and academic programs expand, universities such as NCCU frequently face pressure to modernize facilities and infrastructure with limited financial flexibility.

The university’s current financial outlook underscores the balancing act many HBCUs face: growing enrollment and visibility while simultaneously trying to strengthen long-term fiscal stability.

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