NC State Chancellor Marye Anne Fox told members of the Staff Senate on Wednesday that the state budget passed last week provided some relatively good news, but also left open the possibility of more problems down the road.

Fox said that the budget cut of almost 3 percent was "far less odious that we thought it might be last spring," and that the university was very pleased the legislature fully funded enrollment growth.

"A cut of 3 percent, on top of a 4 percent cut last year, is still painful, but it is far less draconian than the 15 percent some had suggested," Fox said.

However, she also stressed that the gaps left in the budget by the legislature this year might force the university back into a budget-cutting mode.

"Because the budget shortfall was not fully addressed, there still could be a recision," Fox said, "and the result could be a situation similar to the 5 percent budget cut we faced this year. Some of the austerity measures we undertook during the summer could occur again."

To help staff members perform better in their current job - and also protect them in case layoffs are necessary in the near future - Fox said the university's human resource staff is working hard to continue training opportunities.

Fox asked for patience from employees on the issue of parking, an already difficult situation made worse by several construction projects currently under way or planned for this fiscal year.

"I understand that parking is at a premium, and that many employees will have to walk further," she said.

Ironically, Fox mentioned upon her arrival at the meeting that she had walked over to D.H. Hill Library from Holladay Hall to give her address. "There's no place to park for the chancellor either," she quipped.

In conclusion, Fox said "I believe that the state will recover economically, and it will recover using technology developed here at NC State." She added that despite the budget situation, "we are all pulling together to give our kids a great education."

Posted October 3, 2002

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