Legislative update: a briefing for faculty and staff of the University System of Georgia, No. 9 (Mar. 4, 2002)

LEGISLATIVE UPDATE
A Briefing for Faculty & Staff of the University System of Georgia No. 9, March 4, 2002

Senate's Changes to Amended Budget Fall Mainly in Capital Arena

The Georgia Senate approved its version of the state's FY 2002 Amended Budget on Friday, Day 27 of the 2002 Legislative Session. The news for the University System of Georgia was generally very good, as the Senate left intact the two items most critical to the Board of Regents --$30 million to offset funds lost due to semester conversion and $19.4 million in funding for health insurance.
"There were no real changes from the House version, except in the capital portion of the budget," said Usha Ramachandran, the University System's budget director.
Though several projects in this section were affected, the changes have not alarmed System Office officials.
Although the Senate supported the House's addition of $400,000 in pre-design funds for a Performing and Visual Arts Center for the University of Georgia -- No. 8 on the regents' list of Major Capital Outlay Projects -- senators took out just over $16 million the House had recommended for a number of

minors projects, including:
$275,000 for Coastal Georgia Community College's Camden Center;
$4.5 million for renovation projects at Georgia Southwestern State University;
$3.5 million for an upgrade to the Art and Humanities Building at Georgia State University;
$4 million for the renovation of the Coon Building at Georgia Tech;
$4 million for the renovation of Talmadge Dormitory at Middle Georgia College; and
$4.7 million for the purchase and improvement of a Warner Robbins facility currently occupied by Macon State College for use by Fort Valley State University.
Surviving the cuts to the minors projects is $4.7 million for use by Macon State in establishing a permanent home in Warner Robins through the rehabilita-

tion and expansion of the former Thomas Elementary School.
The Senate also added back $240,000 for the pre-design of a Special Collections Library at UGA, a project that was added to the amended budget by Gov. Roy E. Barnes, but removed by the House.
Senators removed the $750,000 the House had recommended adding to the resident-instruction budget 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 2003 Budget, but the House chose to include it in the amended budget instead. The Senate moved the item out of the amended budget, but System Office officials expect it to be given full consideration for inclusion in the FY '03 Budget, where it stands to become an annually funded item.
Elsewhere in the budget, the Senate supported the House's decision to soften reductions for two units of the University System

-- the Agricultural Experiment Station and the Cooperative Extension Service -- that are facing more extensive budget cuts than the 2.5 percent ordered for all state agencies by the governor.
The Medical College of Georgia Health Inc. fared better in the Senate than in the House with regard to budget reductions. Seeing that Gov. Barnes had not recommended any budget reductions for MCG Health, the House recommended a cut of just over $442,000, but the senators chose to support the Governor's wishes.
"Overall, the University System's concerns have fared very well in the amended budget," said Tom Daniel, senior vice chancellor for external affairs and facilities. "We're appreciative of the consideration we've been given by the legislature, especially concerning the bonds they've proposed to fund our capital projects."
The budget now is in the hands of the Conference Committee, which began deliberations yesterday.

LEGISLATIVE UPDATE -- March 4, 2002, Issue No. 9

$80M in Additional Budget Cuts From State Agencies Ordered

USG Institutions Must Cut Another $14M; Salary Increases Trimmed

Gov. Roy E. Barnes on Thursday announced an additional round of reductions to the FY 2003 budgets of state agencies to offset declining state revenues. The University System of Georgia has been instructed to slash another $14 million from its budget.
Barnes, who asked state agencies last fall to reduce their FY '03 budgets by 5 percent, said he is trimming raises for teachers and University System employees from 3.5 percent to 3.25 percent, but the bulk of the reductions will have to be absorbed by USG institutions in other ways, as well.
The situation is one of grave concern to System Office officials, who have been working tirelessly to keep the University System's critical needs on the table as the FY '02 Amended Budget and FY '03 Budget work their way through the General Assembly. One of the most critical needs is maintaining -- or boosting -- the funding formula that feeds System institutions. The cuts announced Friday will delete $12 million from the formula. The re-

maining $2 million will come from the System's B-Unit activities.
"These difficult economic times are certainly unfortunate," said Tom Daniel, senior vice chancellor for external affairs and facilities. "As our funding partners, the Governor and the General Assembly are working together to minimize the impact on public higher education. We understand the demands placed on them and are grateful for their continued support. We all recognize the deep impact these cuts will have on our campuses."
In an address on the FY '03 Budget delivered this morning (Monday, March 4) to the House Higher Education Appropriations Subcommittee, Chancellor Thomas C. Meredith said that "the University System will do its part" to help trim the state budget. But, he cautioned, "we cannot continue to absorb cuts of these amounts and not begin to see our quality of teaching, research and service affected."
To place the reductions in a larger perspective, the chancellor noted that the University System's portion of

the total state budget has shrunk in recent years. "You have given us responsibility for managing 50 percent of the state's facilities and almost one-third of its workforce, yet provide us with a declining proportion of the state's total budget -- currently down to 11.4 percent," he said. "And on top of this, we are serving the largest number of students in the System's history and well over 40,000 continuing-education students."
We must be careful not to cut to the point where we sacrifice quality. We must not send the wrong message to the dedicated faculty and staff on our campuses that they are being abandoned," he continued.
"For every dollar invested in the University System by the state, we're able to put four dollars back into the state's coffers," he said. "The University System is an economic engine, feeding the state's economy. We have to be careful not to go after our own seed corn," he said.
"We are doing more than our part" to help the state cope with

recession, he noted. "Although all state agencies were asked to take a 5 percent cut in FY '03, we have been asked to take an overall reduction of 6.6 percent. Now we have been asked to cut another $12 million on top of the previous cut. The University System's portion of the state budget is 11.4 percent, yet our cut equals 17.9 percent of the total cuts."
Later in his remarks to the House Appropriations Subcommittee, the chancellor applauded the Georgia legislature's strong support for merit salary increases for "the System's greatest resource," its faculty and staff. The support for these raises "mean a great deal to us," despite the one-quarter-percent reduction ordered Friday, Meredith said.
Daniel agreed, noting that "the Governor and the General Assembly understand the importance of a strong University System. Their commitment to continued salary increases for faculty and staff is a wonderful example of that understanding."

-- 2 --