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ASU students demonstrate against possible tuition hikes in this recent file photo. Financial aid cuts, which were part of a North Carolina House budget bill passed Wednesday, could lead to higher tuition, students say.




Originally published: 2011-05-06 08:32:07
Last modified: 2011-05-06 08:40:42

Budget crisis continues at ASU

by Lauren K. Ohnesorge

Appalachian State University officials are calling the budget proposal passed Wednesday by the North Carolina House "disappointing."
The House's 17.7 percent reduction to the university budget would create a "very serious" situation at ASU, Susan McCracken, director of external affairs and community relations, said Thursday.
Last month, ASU Chancellor Kenneth Peacock said the then 15.5 percent proposed cut, if passed, would result in 200 job losses and tuition increases.
"The way it stands now is frightening," he said then. "It is absolutely frightening."
ASU officials on Thursday could not say exactly how the new 17.7 percent figure would impact that initial assessment, but "we're still looking at job  cuts," McCracken said. The 17.7 percent cut would equate to more than $25 million.
"A cut almost at 20 percent, these are real positions and real people," she said.
But, it could be worse.
"We were pleased to see the House worked very hard to work with the universities to give as much flexibility to that reduction as possible as opposed to specifying specific items or budget categories that need to be reduced. ... However, it is still an enormous reduction," she said.
The good news, "if you can call it that," she said, is that the budget did include funding for enrollment growth.
"So, it does allow the university to receive funding if they accept and enroll more students than we currently have this year," she said.
Additionally, there was some funding for building reserves.
The Senate will start budget      deliberations next week.
"I anticipate the Senate is really going to wrestle with this budget and that they are going to work diligently to reduce the overall cuts the House approved," McCracken said. "That is my expectation and that is my hope."
A late development Wednesday, however, increased the seriousness of the situation for students. An additional reduction in financial aid was approved.
"This happened very much at the last minute," she said. "Just under $35 million of scholarship money for needy students was eliminated."
Those funds were placed into school construction projects.
"That was something I had not anticipated and I certainly hope the Senate will work with us to find a way to restore that financial funding for low-income students," she said. That cut would impact both future and current students on financial aid.
Presently, 48 percent of ASU's student population is on financial aid. "I'm really hopeful the Senate will take a look at this," she said.
Next Thursday, McCracken plans to be in Raleigh speaking with senators directly on the budget situation.
The overall reduction to the UNC system is about $491 million.
UNC President Tom Ross said the cuts would "inflict real and lasting damage to the academic quality and reputation of the University of North Carolina."
Additionally, Political Action Committee Citizens for Higher Education released the results of a Public Opinion Strategies poll Thursday about how voters see the cuts.
Five hundred registered voters were surveyed and asked whether they were confident in the University of North Carolina system. Fifty-four percent of survey participants expressed a "great deal of confidence." Compare that, David Rice of Citizens for Higher Education, said, to the 6 percent of voters who expressed a "great deal of confidence" in the N.C. General Assembly.
"The numbers are pretty clear," he said.
Additionally, 76 percent of the poll's participants said decreased funding for North Carolina's public universities was not an acceptable solution to the 12.6 percent budget shortfall.
"And the numbers were bipartisan," Rice said.
Two thirds of those surveyed said they would be less likely to support their representative if he or she backed such cuts.
The survey also indicated broad public support (78 percent) for keeping the 1 percent sales tax (that expires in June) if the tax would limit cuts to public schools, community colleges and public universities.
Rice hoped that, by releasing the survey Thursday, legislators might be persuaded to rethink their positions on budget cuts.
The bill (HB 200), passed its third reading Wednesday, 72-47. Only five Democrats voted yes. Local representative, Jonathan Jordan, voted in favor of the measure, as did all other Republican representatives.