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Regional News 5/2/01


Budget crisis hits universities

By Scott McLeod

Western North Carolina’s economic and cultural future may be adversely affected by state budget cuts that could take effect July 1.

Proposed cuts requested last week of the university system have caused concern among many, particularly those associated with the universities and those who benefit from programs that may be eliminated.

Chancellors were asked to submit state budget reduction plans of almost 7 percent. The cuts are part of the General Assembly’s plan to deal with a $700 million budget crisis.

“It’s not a question of whether cuts will take place, it’s just a matter of how substantial they will be,” said Rep. Phil Haire of Sylva. Haire said Raleigh lawmakers are at their wit’s end in dealing with the shortage of money.

“There just isn’t any,” he said.

In fact, some in Raleigh are predicting the budget shortfall could climb a high as $1 billion. That’s 7 percent of the entire state budget of $14 billion, Haire said.

At Western Carolina University, the primary losses will be in community outreach programs not vital to the core mission of the Cullowhee campus, which remains educating students, said Chancellor John Bardo. The university’s public service programs could be cut by 95.2 percent, and its research programs could be reduced by 39 percent.

Western Carolina University Chancellor John Bardo said the hit list included programs that have provided immense benefit to the region, both because of the jobs they created and the service to the people and communities.

“The proposed budget cuts effectively eliminates Western Carolina University's service mission,” Bardo wrote in a letter to UNC system President Molly Broad. “A reduction in budget of 6.6 percent will cause the university to immediately stop all outreach services to small business, local governments and the region’s school districts.”

“The impact of this budget reduction on a small university is devastating. It will be reflected in significant personal pain and anguish and increased economic hardship in an already distressed region,” the letter said.

“This is as difficult as anything I’ve ever dealt with,” Bardo said in an interview this week. “We are dealing with good people who have done their jobs.”

Up to 60 positions could be eliminated if the budget cuts take effect.

The decision to eliminate the community outreach programs follows the recommendations in the university’s long-range strategic plan, a document that has been taking shape over the last four years.
“It talks about preserving our core set of values. That core is teaching and learning,” Bardo said.

In reality, because of rising utility costs and a 2 percent budget “reversion” earlier this year, the university is facing a state funding reduction of about 9.6 percent, said Bardo. If that reduction was applied across the board, the teaching faculty of 370 would be severely reduced. But since many of those jobs are tenured or tenure track, they can’t be eliminated.

Even the small reduction in teaching faculty this reduction will force could lead to a further reduction in state funding, said Bardo. That’s because state funding is tied to enrollment, and since fewer courses will be offered fewer students will enroll.

“If we reduce the number of teachers, we reduce the number of students. That will reduce the amount of state money, and we will begin a downward spiral we don’t want to get into,” said Bardo.

“It’s nothing we wanted to do, but the outreach programs least affect our core budget, which comes from the number of students in the classroom,” he said.

Reaching into the community
Among the programs slated for total elimination is Western North Carolina Tomorrow, whose 3-staff office works out of the university and receives 90 percent of its funding from the state.

It received $107,000 in state funding from the university, but helped local governments and other groups acquire nearly $1.9 million in the last 18 months.

“These are grants that go to local communities so they can complete their own projects,” said Phil Gibson, a community development specialist for WNCT. “The whole revitalization of the downtown Bryson City area, over $500,000, was from grants that WNCT wrote,” he said.

WNCT was also a sponsor of the Governor’s Air Quality Summit two years ago. Out of that came the Mountain Air Quality Coalition, a group of 40 institutions including industry, community leaders and environmental groups created by WNCT with a $167,000 state grant from the Division of Air Quality. By bringing different parties to the table, WNCT can be credited with helping to negotiate the the Clean Air bill that is now working its way through the General Assembly. Commercials about WNC air quality woes are now showing in regional movie theaters, another effort that is a direct result of work by WNCT.

“I think these kinds of programs make a real difference in Western North Carolina,” Gibson said. “You know, that’s what our job is, to help communities, and communities are the most important part of this region.”

As WNCT’s reputation has grown, agencies with available grant money now call staff members to see if there are groups in the region who fit the grant criteria.

“They know we can make good use of the money if we can get it here,” Gibson said. “And that’s one of the things we are good at.”

Also, five new erosion control officers were hired in the Asheville DENR office from recommendations made by WNCT to Sen. Dan Robinson.

Timothy Richards is the director of the Mountain Resource Center, another of those outreach agencies that could be eliminated if the state follows through on the cuts. Half Richard’s staff - about eight people - were out in the field when he was contacted by a reporter.

“These counties out here have limited resources and are struggling to address challenges,” Richards said. “Our job is to try and bring the resources of the university out in the field to them.”

The Resource Center was an outgrowth of what was formerly the Center for Improving Mountain Living, an agency started in 1976. For 26 years now, one of its main purposes has been training local government officials in 26 western counties. About 1,200 took part in about 35 different programs last year.

In addition, the center produces county economic data profiles for the western counties and operates the Economic Development Administration with a combination of state and local funds.

It also houses the Smoky Mountain Development Association, which provides access to small business loans. According to Richards, about $12.7 million has been loaned for $40 million worth of projects. In the seven western counties, that money has produced about 500 jobs, he said.

“I think we are a part of the story, that these cuts will have a significant impact on the ability of the university to provide outreach services that are of critical need to Western North Carolina communities,” Richards said.

Richards does not blame the university for what is happening.

“It’s important to remember that no one is endorsing this on the university side,” Richards said. “They were asked by a legislative committee to come up with reductions.”

Gibson, however, does question the drastic reductions in outreach programs.

“It’s hard for me to understand why the community-based, non-faculty programs that have a direct impact on the communities and the people who live here are taking the huge hits,” said Gibson. “These are specific programs that have direct relationships to jobs and the community.”

“We as humans have a tendency to have waste. It’s human nature, and we always need to look at how to streamline,” said Gibson. “But WNCT is streamlined.”

Bardo, while apologetic about the outreach cuts, maintains that the budget reduction plan does its best to protect the university’s teaching mission.

“The bottom line is that we had to plan for a 7 percent reduction. If we applied it evenly, then no area of the university could function properly,” he said.

 

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