Legislative update: a briefing for faculty and staff of the University System of Georgia, No. 11 (Mar. 25, 2002)

LEGISLATIVE UPDATE
A Briefing for Faculty & Staff of the University System of Georgia No. 11, March 25, 2002

Approved Amended Budget Contains $30M in Formula Funding

Also Health Insurance, Eminent Scholars Funds, Many Capital Projects

T he funding elements considered most critical to the University System of Georgia remained intact when the Georgia General Assembly gave final approval to the state's Fiscal Year 2002 Amended Budget last week.

recommended by the Governor and approved by the General Assembly."
There was still more good news for the University System in the final version of the amended budget. The spending plan includes

$3 million in statematch funding to support six Eminent Scholars for USG campuses -- two each at Kennesaw State and Georgia Southern universities and one each at Columbus State and the State

University of West Georgia.
"The potential gain for the University System as a result of this decision is just extraordinary,"
See "Amended Budget," Page 2 ...

The budget adopted by the House and Senate on March 18 emerged from Conference Committee deliberations with the full $30 million requested to offset funds lost as a result of semester conversion and $19.4 million to cover recent increases in the employer's share of health-insurance premiums imposed by the University System's health-care vendors.
"This is a very positive development for the University System, its students and its employees," said Tom Daniel, senior vice chancellor for external activities and facilities. "These items were our highest priorities, and they were

USG Capital Projects Funded in Budget
The three capital projects on the Regents' Majors List that received construction funds in the FY '02 Amended Budget are as follows:
$33.3 million for a Health Sciences Building at the Medical College of Georgia;
$18.2 million for the Bartow Center at Floyd College; and
$31.9 million for the Klaus Advanced Computing Building at Georgia Tech.
An additional five projects on the Regents' Majors List received design funds. They are:
$975,000 for a library addition at Georgia Southern;
$1.2 million for a Social Sciences Building at Kennesaw State;
$300,000 for a Student Center for the Clarkston campus of Georgia Perimeter College;
$170,000 for the campus utilities loop at Middle Georgia College; and
$200,000 for the pre-design of a Performing and Visual Arts Center at the University of Georgia.
A total of 10 projects on the Minors List received funding, including:
$4.6 million to replace the central-plant chiller at Clayton College and State University;
$800,000 to replace the heating, ventilation and air-conditioning system campus-wide at Gainesville College;
$3.5 million to replace the electrical system of the West Campus at the State University of West Georgia;
$4.7 million for the purchase and improvement of a Warner Robins facility for Fort Valley State University;
See "Funded Projects," Page 2 ...

LEGISLATIVE UPDATE -- March 25, 2002, Issue No. 11

Amended Budget cash, the conferees

Continued from Page 1...
commented Budget Director Usha Ramachandran. "It's wonderful news."
Cognizant of reduced state revenues, the Conference Committee included the 2.5 percent spending cuts imposed on state agencies late last year. However, emergency funding had to be found to cover the expense of the Tri-State Crematory investigation in Noble, Ga.

worked out a compromise which altered the original $726 million bond proposal. The University System's share of the approved $710 million final package is nearly $222 million (see accompanying list of funded projects for details).
Among the capital projects to be funded with cash instead of bonds is one involving improvements to the physical education facilities at ABAC,
Middle Georgia

"All in all, I'd say we

College and South Georgia College.

gained handsomely,

The Conference

particularly in the area of capital outlay. The Governor recommended

Committee allocated $100,000 to each institution.

$200 million for this portion of the budget, and we ended up with nearly $222 million." -- Budget Director Usha

Three USG budget items whose fates have been somewhat tenuous as the amended budget made its

Ramachandran

way through the

legislature fared

Therefore, the committee concentrated on reshaping the bond package financing new construction proposed by the Governor to stimulate the economy by creating new jobs. By not funding some projects, reducing funding for others and shifting the financing of still more projects from bonds to

well in the end. The Conference Committee included $450,000 in the spending plan for the implementation of a leadership program at North Georgia College and State University. Funding for this mission-related initiative was requested in the FY '03 Budget, but the House recommended that $750,000

Funded Projects Continued from Page 1...
$4.5 million for the renovation of Nevins Hall, the science building at Valdosta State University;
$4.9 million for the River Regional Center at Bainbridge College;
$4.3 million for the Animal Health and Biological Resources Facility at UGA;
$4.5 million for the renovation of Jackson Hall/ Maintenance Building and an addition to the physical plant at Georgia Southwestern State University;
$5 million for the renovation and expansion of the Warner Robins Center at Macon State College; and
$4 million for the renovation of Talmadge Dormitory at Middle Georgia College.
Other projects that received funding included:
$1.4 million to cover planning and design of the Coverdell Building at the University of Georgia;
$1.4 million to cover planning and design of the Cancer Research Center at the Medical College of Georgia; and
$2 million to fund renovations to the Coon Building at Georgia Tech.
In addition, construction funds for five new public libraries were approved, including:
$830,000 in Berrien County;
$1.25 million in Telfair County;
$250,000 in Toombs County;
$1 million in Wheeler County; and
$1.5 million in Clayton County.

be included in the amended budget instead. The Conference Committee compromised by assigning it $450,000.
"All in all, I'd say we gained handsomely, particularly in the area of capital outlay," Ramachandran said. "The Governor recommended $200 million

for this portion of the budget, and we ended up with nearly $222 million."
The budget bill, which passed the Senate 33-20 and the House 134-39, now awaits the Governor's signature.

-- 2 --

LEGISLATIVE UPDATE -- March 25, 2002, Issue No. 11

House Approves Governor's Recommendations for FY '03 Budget

The Fiscal Year 2003 Budget passed the House on March 18, and University System officials are pleased that Gov. Roy E. Barnes' recommendations regarding the System's budget enhancements remained intact.
"The House made very few changes to the Governor's recommendations throughout the budget, and those changes were almost all in our favor," said Usha Ramanchandran, the University System's budget director.
The budget enhancements include:
$27.7 million in additional funding to offset the temporary decline in enrollment that resulted from semester conversion;
$2.2 million to enhance access to and participation in higher education by African-American males and nontraditional students;
$1.5 million to fund the application of the highly successful ICAPP Advantage

model to the fasttrack education of health care professionals;
$160,000 to fund the first phase of a Doctoral Scholars Program for minority graduate students in conjunction with the Southern Regional Education Board;
$150,000 to enhance the Accountability Plus II system; and
$2 million to fund the leasing of a new building to house Yamacraw, a program nurturing Georgia's broadband technology industry in which the University System is a partner.
In addition, the House approved of the Governor's plan to give University System employees 3.25 percent average salary increases.
"We appreciate the legislature's continued support for the caliber of raises that will help us to remain competitive with other states belonging to the Southern Regional

Education Board," said Chancellor Thomas C. Meredith. "It means a great deal to us to be able to recruit highquality faculty from other states. This is one of the best investments Georgia can make."
Among the changes to the FY '03 Budget as it passed through the House were:
$915,000 was added back into the budget for regional economic-development programs at Georgia Southern University and East Georgia College ($600,000 for GSU and $315,000 for EGC), as an earlier reduction would have eliminated all funding for these programs;
$200,000, was added back into the budget for the Georgia Tech Regional Engineering Program (GTREP) to soften an earlier reduction of $475,000;
a budget reduction of $200,000 was applied to Accountability Plus, the

University System's comprehensive accountability reporting system;
$827,000 was added back into the budget for the Medical College of Georgia's nursing anesthesia program, as an earlier reduction would have eliminated all funding; and
a reduction of $827,000 was applied to MCG's state appropriation.
The FY '03 Budget now is under consideration by the Georgia Senate.

-- 3 --