Ballard was an assistant at Morehead State from 1984-87 and became the head coach there in 1994. The Eagles were 102-105 in Ballard's 19 seasons.
Morehead State was 4-7 overall this season and 3-5 in the Pioneer Football League after a 3-8 record (2-6 in the league) in 2011.
"We have not made continual progress on the football field. The program is not performing up to the expectations we have for it," Hutchinson said.
"Over the years, we have identified obstacles to our success and have been diligent in addressing them. The results have been consistent for a few seasons now and it is time to change leadership."
Hutchinson expressed gratitude toward Ballard, who took over a program, in Hutchinson's words, "in shambles."