Dear Colleagues:

During Tuesday's snow day, I took advantage of some quiet time to catch up on some lingering emails, clean off my desk, and re-write my syllabus schedule. I suspect many of you did something similar. I also took some time to walk around the grounds with my dog, to watch the campus stir back to life as brave souls scurried from building to building, and as our FM staff cleared the sidewalks and roads. Those "Snow Wolves" that come out to support our campus and our students are a great example of how Every Red Wolf Counts to the operation of our university.

The "day off" also gave me time to reflect on the past year – something that seemed impossible to do with the hustle and bustle of the holiday break. It probably goes without saying that one year ago today, I never would have dreamed that Beth and I would be living in Jonesboro, starting a new chapter of my life with you. What a year it has been!

That night, I spoke to a student group in the A-State auditorium, and standing on that stage reminded me of the presentation I made when I came here for my interview. That day, I shared with the A-State community a bit about my own biography, my values, and things I would like to do if I were to become A-State's next chancellor.

I told you that as a first generation student, I was inspired by the many people who stood in the gap for me over the years, and who changed my life because they saw something in me that I never saw in myself. All of those people were teachers and professors, and my experiences with them colored the way that I view our vocation.

I described some of my guiding values using the DIRECT acronym that I made up (Diligent, Integrity, Resourceful, Enthusiasm, Community, and Transparency), and I discussed my commitment to shared governance. I promised that if I were named chancellor, I would pour everything that I had into the job, and that I would respect the important role that faculty and staff share in governing our school.

Finally, I presented an outsider's perspective of the challenges and opportunities that seemed to be in A-State's path. I led with a quote from our first president, V. C. Kays, who in 1934 presciently defended the ideal of the university by writing, "Only through proper mass exposition of the equities of social justice can our heritage of a democratic society be perpetuated." His words continue to inspire me today.

We have a lot of really great things happening at A-State – ranging from research that is ground-breaking at Arkansas Biosciences Institute, to student/community involvement in record-breaking charity fundraising benefitting St. Jude's. I could do an entire email just about the positives – and you know what, I will – but in the next few weeks, we will need to come together to face some significant challenges.

Our fiscal situation is not unique to the state of Arkansas or to Arkansas State. Nationally, investment in higher education at the state and federal level has been declining. While flat state funding is better than the sharp cuts other states have experienced, increasing costs like utilities, salary increases, and health insurance mean that flat funding is, in fact, a cut. To make up the difference, all public universities are increasingly dependent on tuition and fees to fund their operations.

Unfortunately, this past fall we experienced the loss of 27% of our freshman class, and we welcomed the smallest freshman class in recent years. Because we have become so tuition dependent, this diminished enrollment among traditional students had a huge effect on our budget. We also learned last fall that the new funding formula would result in our not being eligible for any additional state funding. We are indeed fortunate that the governor has agreed to hold us harmless this first year of the formula, meaning that our budget will not be reallocated this year. But, if things do not change in the coming years, we stand to have up to 2% of our state funding reallocated to universities that are performing better on the formula's metrics than we are. Finally, the governor's recommendation of a resident tuition freeze for four-year institutions for FY19 – something to which I am committed to adhering – adds another challenge for us.

Our many responses to these challenges included examining and enhancing many of our current recruiting practices. We also re-doubled our efforts to recruit transfer students, especially from our sister two-year colleges within the ASU System. We created the Chancellor's Commission on Completion, tasking members of this small group to explore every aspect of student success on our campus, and to make recommendations to the shared governance committee based on data and an appreciation of best practices. We instituted a hiring freeze for faculty and staff, until such time that we can more fully understand what the FY18 budget looks like (we will not know that until the 11th day of the spring semester, when our official enrollment count is determined). We also instituted a voluntary early retirement program.

None of these efforts should be a surprise to you because we have done them all while engaging in full, frank, and open discussions with the Faculty/Staff Senates, the A-State Executive Committee (composed of faculty, staff, students, and administrators), and many departmental faculty meetings. The message that I have been sharing is pretty simple. We are a fine university with many wonderful things happening. Like all public universities, we face some challenges, but recent history has shown that we have been an innovative and resourceful institution. Our goal is not just to survive, but to thrive in these difficult times.

But the fact is the next couple of years will be tough for us, financially. The good news is that we are all in this together. We all have a role to play in recruiting and retaining students. Our commitment to shared governance ensures that we all have a voice in determining the future of our university. The ASU System has commissioned an efficiency study that is focused on paring down administrative costs and increasing revenue opportunities. I am grateful that the governor has committed to funding half of the cost of the study.

This is an exciting time in the history of our university. I am more excited about this job today than I was the day that it was offered to me. Beth and I are so happy with our decision to come to Jonesboro, and I look forward to serving alongside you as we move forward. There's a lot to do, but we are well positioned to do great things!

Have a great semester!

Kelly