Published: 3:13 PM, 08/19/2009

Last updated: 12:52 PM, 11/17/2009

By: Scott Nicholson

Appalachian State University is facing a double-digit percentage cut in its budget for the current fiscal year.
Interim Vice Chancellor for Business Affairs Greg Lovins issued a memo Wednesday notifying departments that the university's certified budget would be reduced by an additional 5 percent by the state.
The announcement was forwarded from the North Carolina Office of State Budget and Management. "Because of continued uncertain economic conditions and the state's current cash position, Governor (Beverly) Perdue and the OSBM are requiring state agencies (including Appalachian) to reduce its certified budget by 5 percent," Lovins wrote. "This order is effective September 1, 2009 and will continue until informed otherwise."
The University of north carolina Board of Governors settled on a tentative budget, which Lovins said hadn't been announced yet. However, that certified budget includes a 5.2 percent cut in addition to the state budget's reduction, bringing the estimated total reduction to 10.2 percent.
"While the 5 percent reduction mandated by OSBM could be rescinded this year, we must plan as if it will be effective for the entire year," Lovins wrote. "Consequently, although some spending actions may now occur, we must remain diligent in our efforts to control spending in the 2009-10 fiscal year."
The Vice Chancellor's office issued the following guidelines:
All hiring and travel requests must be approved by the appropriate Vice Chancellor (or to the Chancellor for those directly reporting to him).
Departments may purchase essential classroom and office supplies but are asked to keep those purchases at a minimum.
Equipment purchases remain suspended unless approved by the appropriate Vice Chancellor (or to the Chancellor for those directly reporting to him).
Maintenance agreements and standing purchase orders previously denied by the OSBM may be processed.
Membership dues should be carefully scrutinized for necessity before renewal.
All purchase orders in excess of $1,000 must be approved by the appropriate Vice Chancellor (or the Chancellor for those directly reporting to him).
In the future, Purchase Orders, and Purchase and Contract bids, will include the following statement: "Any and all payments to the contractor are dependent upon and subject to availability of funds to the agency for the purpose set forth in this agreement."
"We realize these budgetary restrictions may hinder the execution of your responsibilities, but the uncertainty of the state's current cash position, the continued difficult economic environment and the potential for additional budget restrictions prevent any significant relaxing of spending guidelines at this time," Lovins concluded.

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