Dear Friends,

As we return from Spring Break, I am pleased to report that the Appalachian Family has enjoyed many recent accomplishments and looks to the future with enthusiasm and confidence. At the same time, we are dealing with current economic realities that require thoughtful and careful decision-making.

Many of you have been reading about actions that other UNC System campuses have been taking in light of North Carolina’s economic situation. Please know that each campus has a different set of circumstances regarding their budgets and are responding as they deem appropriate. This does not mean that Appalachian will proceed with the same or similar steps that other campuses have announced.

Our state appropriation has been reduced by $7.4 million and we may be asked for another one percent of our budget, or $1.2 million, shortly. We cannot endure reductions like that without feeling pain. We are estimating that there will be 200 fewer class sections offered next year, as we could not hire the faculty we need to teach those classes. Unfortunately some classes will be larger than we would like, some students will take longer to graduate because of class unavailability, and faculty workload will increase.

We will remain constant in our mission, however, to provide the quality academics that is the hallmark of this institution, and, we are committed to preserving as many jobs as possible. These two principles have been foundational for the Chancellor’s Cabinet as we have projected various financial scenarios. We are analyzing where every dollar goes so that we will be prepared to make the best decisions when the time comes for further reductions.

One area of focus has been on saving energy. I am very pleased to report that already this year, the campus has saved more than $275,000 in energy costs over last year, despite experiencing a colder winter. Thanks to everyone who has worked to make this happen by turning off lights, shutting down computers and setting back thermostats. These small items add up to big dollars and we continue to work to make our campus even more energy efficient and reduce our carbon footprint.

At this moment, several unknowns prevent us from predicting what next year’s budget may look like for Appalachian. The state budget will continue to be negotiated until sometime this summer, the benefits of the federal stimulus package are not yet clear for higher education, and, very importantly, we do not know if we will receive enrollment growth dollars next year. Lastly, we don’t know whether the reductions we have received will be permanent or nonrecurring.

My most important message to you today is that Appalachian is moving on regardless. We have dreams to fulfill and greater heights to reach. Look around and see all that is happening: construction of the much-needed College of Education building is in progress, the grand opening of a refurbished University Hall, the new Appalachian State University Center at Hickory has been announced, and remarkable scholarship continues to be produced by our students and faculty.

Our eye is on the future and I thank each and every one of you for all you do on behalf of Appalachian and its students. I will keep you informed of the budget situation as I learn more.

With Appalachian pride,

Kenneth E. Peacock
Chancellor