Legislative update: a briefing for faculty and staff of the University System of Georgia, No. 1 (Jan. 8, 2001)

LEGISLATIVE UPDATE
A Briefing for Faculty & Staff of the University System of Georgia
No. 1, Jan. 8, 2001
Gov. Barnes Announces FY '01 Supplemental Budget
All 236 legislators of the Georgia General Assembly are expected in Atlanta today for the formal kick-off of the first session of the 2001-2002 legislative biennial. The session now moves to fast forward for the next five days as the full body convenes this week before breaking for the Martin Luther King Jr. State holiday next Monday.
The work of the House and Senate Joint Appropriations Committees got off to an even earlier start last week, however, as members of that group gathered for hearings on the FY '01 Supplemental Budget. Gov. Roy Barnes jumpstarted the Committees' proceedings on Mon., Jan. 2, with an address in which he outlined his priorities for the FY2001 Supplemental Budget.
Barnes continued his forward march on his education agenda of the past three years, recommending a $.5 billion K-12 school construction program the largest in Georgia's history aimed at making his goal of lower class sizes a reality. He also announced expansion of support for teacher certification and professional development programs, along with nearly $13 million in funding for competency and end-of-grade tests for public school students. In addition, the Governor announced more than $40 million in proposed expanded funding for the state's HOPE scholarship program, to meet increased student demand.
The Governor also pledged to return some of Georgia's continued economic prosperity to the taxpayers, in the form of additional property tax relief. He recommended $166 million in the Supplemental and $83 million in the FY '02 Budget to increase the total homestead exemption from $20,000 to $50,000 for every Georgia homeowner over a seven-to-eight year period.
"Georgia has been one of America's leaders in economic growth," Barnes stated. "The census report released just last week shows we have grown by 1.7 million people this decade alone. And the best thing we can do to extend that prosperity is to cut taxes again this year."
University System of Georgia Chancellor Stephen R. Portch presented Gov. Barnes' budget recommendations for the Board of Regents the following afternoon, on Wed., Jan. 3 -- a presentation that was extremely well received.
The Governor supported many of the System's priority funding requests in his Supplemental Budget recommendations, including $24 million to hold the University System harmless from the enrollment implications of semester conversion, $15 million in employee health-care funding needs, and $175.7 million in capital funding, among other key initiatives.
In his remarks to the Committees regarding the $24 million for the funding formula, Portch emphasized the System's "bounce back" from the previous enrollment decline experienced in Fall 1998 -- the first year of semester conversion and the year on which the formula will be weighted in this budget cycle. The chancellor noted that the System's Fall 2000 enrollment is its second highest headcount on record, trailing only slightly behind the record high of Fall 1995. As projected, the decline in enrollment was temporary, in line with the experience of other institutions and systems which have converted their academic calendar.
"We're off to an exciting start with this year's session," said Chancellor Portch. "The Governor's capital recommendations will build well on the $315 million we've received from the legislature for capital funding over the past two years, and should help us to continue our momentum in this area. While this figure may pale in comparison with the $3.1 billion bond referendum for higher education construction just approved in North Carolina, we believe this is a better approach, to have a strong construction program each year."
The Governor also recommended $15 million to help the System cover anticipated employee claims and to pay the employer share of health-care premiums for University System employees. Portch noted that this was the second time the General Assembly had been asked to allocate funds to address the System's health-care costs; however, he told the members of the Committees that aggressive efforts to transfer University System of Georgia employees out of the self-insured indemnity plan

had resulted in 43 percent of such employees enrolling in more cost-effective health-care benefit programs.
The Governor also recommended that the System receive $15 million from the Equipment, Technology and Construction Trust Fund. Customarily allocated from the "big budget," these lottery revenues were recommended by the Governor for allocation in the FY '01 Supplemental Budget.
Gov. Barnes also recommended the allocation of an additional $800,000 in lottery revenues for the continued phase-in of the electronic interoffice library system known as PINES (Public Information Network for Electronic Services). Currently, 26 of the state's 57 public library systems are part of PINES. The $800,000 would allow 15 more systems to be added to the network.
In all, 19 of the University System's 34 institutions are in line to benefit from the Governor's equipment and capital recommendations. Six major projects already in the USG construction pipeline, have been recommended to receive their associated equipment needs, totaling $9.1 million. These include the following:
z $2.7 million for the University Learning Center at Clayton College and State University; z $1.1 million for the Technology and Commerce Center at Columbus State University; z $2 million for the Science and Nursing Building at Georgia Southern University; z $950,000 for the Camden Center Facility at Coastal Georgia Community College; z $1.37 million for the Russell Library & Information Center at Georgia College and State University; and z $1 million for a Residence Hall at Savannah State University.
The Governor also recommended $95.3 million to construct the top six projects on the Regents Major Capital Priority List (all currently in design). The projects include:
z $15.5 million for Macon State College's Nursing/Health Sciences and Outreach Complex; z $7 million for the Agricultural Sciences Building at Abraham Baldwin Agricultural College; z $12.3 million for the Physical Education Building at Darton College; z $18.6 million for Georgia Southwestern University's HPE Recreation, Athletic and Student Success Center; z $23 million for the Classroom and Convocation Center at Kennesaw State University; and z $18.9 million for Phase II of the Classroom Replacement project at Augusta State University.
With major projects number 7 and 8 (the Medical College of Georgia's Health Sciences Building and Floyd College's Bartow Center) already in the design phase (utilizing existing funds), the Governor also recommended $660,000 in design funds for number 9 on the Capital Priority List, the Georgia Tech Advanced Computing Technology Building.
In addition, Gov. Barnes recommended $33.3 million in funding for nine of the System's 15 requested Minors projects.
Tom Daniel, interim senior vice chancellor for external activities and facilities with the Board of Regents, is optimistic about the next 40 days of the legislative session that lie ahead. "The capital recommendations were most noteworthy," he stated, "and I'm pleased about the reception that we've received for our formula funding support. It's clear to us that the Governor and the chancellor have a shared vision about the priority that education is for Georgia, and the critical role that the University System plays in helping the Governor and the General Assembly achieve their goal of maintaining Georgia's vitality and national standing."
Looking Ahead:
z 1/11/01 at 11 a.m. Gov. Barnes' FY '02 Budget Address
z 1/15/01 Martin Luther King Jr. Holiday
z Week of 1/16/01 Chancellor Portch's FY '02 Budget Address
z 1/31/01 at 11 a.m. Gov. Barnes' State of the State Address
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Last Updated: January 9, 2001 | Leave a Comment 2001 University System of Georgia Board of Regents