(CHAPEL HILL) -- UNC-Chapel Hill is in the midst of preparing for budget cuts for the 2011-2012 academic year. Chancellor Holden Thorp has already ordered a cut of 5 percent, amounting to $26 million.

Thorp said anything beyond that could cause irreparable academic damage to the university. "That's when we would really start to worry whether people who are here are going to progress to their degrees in a way that's acceptable to us that doesn't hurt our graduation rate and their life, so that when we really start to worry about whether we can keep the promises that we've made," said Thorp.

Deans and department heads must submit their cuts by July first.

(Thanks to: WCHL)