Legislative update: a briefing for faculty and staff of the University System of Georgia, No. 13 (Apr. 28, 2003)

LEGISLATIVE UPDATE
A Briefing for Faculty & Staff of the University System of Georgia No. 13, April 28, 2003
"Creating a More Educated Georgia"

FY '04 Budget With Formula Funds Intact Awaits Governor's Signature

I n the final hour of

"It is just extraordi-

a legislative session nary that the formula

colored by tension funds were preserved

ment, and $6.7 million The Conference

to cover increased

Committee also in-

costs associated with cluded $2 million for

over declining state

throughout all the fi- operating and main- the construction of a

revenues, the Georgia nancial uncertainties taining 1.6 million

new library in Burke

General Assembly

surrounding this year's square feet of new

County.

adopted a state budget for Fiscal Year 2004 that leaves intact the University System of Georgia's $88.2 million in formula funding.
However, the budget cannot yet be considered a "done deal" -- both the FY '04 Budget and the FY 2003 Amended Budget await the signature of Gov. Sonny Perdue, who has the power of lineitem veto.
The tough budget negotiations did not dampen the spirits of USG officials Friday evening.
"We are delighted about the formula funding and very grateful to Gov. Perdue and our legislators for protecting these breadand-butter funds, which are absolutely critical to the University System's ability to operate," said Chancellor Thomas C. Meredith.

session," said USG Budget Director Usha Ramachandran. "It is to the credit of the chancellor and his staff that they were able to impress upon legislators how vital it is to protect this money."
"We very much appreciate the leadership of the House and the Senate for the efforts they made to understand our situation and work with us," added Thomas E. Daniel, senior vice chancellor for external activities and facilities. "They had an extremely tough job to do, and yet they were attentive to our concerns and needs."
The $88.2 million in formula funds -- recommended by the Governor -- includes $81.5 million in new money to cover increased costs associated with an overall 6.6 percent increase in credit-hour enroll-

square footage on the University System's campuses.
The FY '04 Budget adopted Friday also contains "an excellent capital budget," according to Ramachandran. She pointed out that the University System picked up three new minor capital outlay projects totaling $13.3 million in the Conference Committee version, including:
N $4.9 million for an English classroom and office addition at Kennesaw State University;
N $3.5 million for building infrastructure upgrades for Georgia State University's School of Art and Design; and
N $4.9 million for a Continuing Education/Economic Development Center at Dalton State College.

"This is very good news to have had these projects added," Ramachandran said.
The capital budget also retained the $20 million in Maintenance, Repair and Rehabilitation (MRR) funding that was included in the House and Senate versions of the FY '04 Budget. These funds provide for the upkeep and expansion of the 3,000plus state buildings and facilities in Georgia entrusted to the care of the Board of Regents
There also was good news for the University System in the residentinstruction portion of the budget. The Conference Committee included $1.4 million in funds for the Georgia Tech Regional Engineering Program (GTREP) DaimlerChrysler Project.
See "Budget," Page 2 ...

LEGISLATIVE UPDATE -- April 28, 2003, Issue No. 13

Budget
Continued from Page 1...
The committee also restored $500,000 to the budget of the Georgia Research Alliance Eminent Scholar Program, along with funds for two USG Special Funding Initiatives:
$186,240 for a Water Policy Research Center operated collaboratively by Georgia State

University, Georgia Southern University and Albany State University; and
$105,336 for the Total Systems project developed by the Intellectual Capital Partnership Program (ICAPP), which will enable Columbus State University to use computer systems at

the University of Georgia to educate Total Systems employees.
The University System experienced a reduction of just over $12 million in funds used to cover adjustments in such things as worker's compensation contributions, the employer portion of employee life insurance contributions and

Georgia Building Authority real estate rental rates. However, Daniel pointed out, the budgets of all state agencies were reduced in the same manner.
"Overall, we are very pleased with the work legislators did on this budget," Daniel said. "I salute Gov. Perdue for his recommendations and the legislators for their support."

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