LITTLE ROCK, AR (KAIT) - At least $500,000 in state discretionary funding from Gov. Asa Hutchinson will be used to fund an $995,000 efficiency study that is being done at Arkansas State University.
University officials said in a statement Wednesday that the money will be part of the Accelerate ASU efficiency study for the A-State system. System president Dr. Chuck Welch said officials began a dialogue with Huron Consulting Group last fall to look at ways to reduce costs, build revenue and put funding into several strategic plans.
Officials believe Huron will provide up to 50 opportunities for A-State to build revenue for the system.
Both Welch and Gov. Hutchinson said in the statement that the plan has provided true dividends for the state and the university.
"From the day he took office, Governor Hutchinson has emphasized the need for every state entity to look for ways to operate better, smarter and more efficiently. Each of our campuses is committed to controlling costs while improving higher education opportunities for our students and increasing the number of credentials we award each year," Welch said. "We appreciate his recognition and investment in our efforts."
"President Welch has caught the vision that trimming unnecessary costs does not mean a reduction in services," Gov. Hutchinson said in the statement. "That is clear because he is helping to pay for this study with money he has saved by reducing expenses. His team estimates that as the ASU System implements initiatives, the payback in savings could be $12 million to $15 million a year. President Welch is one of many in our state who is leading by example."
The remainder of the study will be funded through reserve funds that have been built up over the past six years, officials said.