Legislative update: a briefing for faculty and staff of the University System of Georgia, No. 1 (Jan. 12, 2004)

LEGISLATIVE UPDATE
A Briefing for Faculty & Staff of the University System of Georgia No. 1, January 12, 2004
"Creating a More Educated Georgia"

Governor Declares Education as One of Three Priorities This Year

Calls for Increased Government Efficiency as Still-Weak Economy Continues to Recover

Gov. Sonny Perdue presented his recommendations for the Amended Fiscal Year 2004 Budget to members of the Joint Appropriations Committee and other state legislators on Jan. 5. The following are excerpts from his remarks:
I believe everyone in this room recognizes that Georgia state government continues to be in a tough financial situation, and we recognize the heightened responsibility placed on each of us to manage state resources wisely to meet the

needs of our citizens. Today, Georgia is still riding out the effects of a national recession.
... I have read the words of some legislators in the papers over the past few weeks. Some have said that we may not need to cut so much, things are better now. [Disappointing] December revenue numbers serve as a strong warning that that is not the prudent course.
I do see better days ahead -- and soon -- but I am not willing to bet on that course by spending money now

that we hope to have later. I won't do it, and I won't allow it to happen.
And I hope you know that anyone game to test me on this resolve will be disappointed with the outcome. If, as I hope, our revenues picture improves, we will address that possibility when it becomes a reality. We will address it this time next year in the midyear budget period.
This means further cuts in Fiscal Year 2004 and for the "big budget" we will be addressing on Jan. 14

when I present my Fiscal Year 2005 budget.
... Our total budget has essentially remained flat over the last two fiscal years. But our needs have grown since 2002. School enrollments have grown at the K12, college and technical college levels. Medicaid costs have grown dramatically and continue to do so. Other basic needs have expanded as well.
... We've got some hard decisions ahead, but I'm confident that
See "Story," Page 2 ...

Chancellor: Consequences of Budget Cuts Felt Deeply by Campuses

T he University System of Georgia's 34 presidents have done a masterful job of managing their campus budgets through tough financial times, but shrinking state appropriations have taken a toll on every college and university in the System, Chancellor Thomas C. Meredith told the General As-

sembly's Joint Appropriations Committee on Jan. 7.
Addressing the committee on the Amended Fiscal Year 2004 Budget, Meredith sought to bring home to legislators the impact of numerous cuts to the University System's budgets since November 2001.
Gov. Sonny Perdue's

request that all state agencies plan for 2.5 percent cuts to their FY '04 amended budgets amounts to $36.6 million for the University System, the chancellor said. On top of six prior cuts the System has sustained since November 2001, the USG has suffered budget reductions totaling nearly $253 million, he said.

"Let me put these cuts in a different perspective." Meredith said. "That $253
See "Chancellor," Page 2 ...
Ready, Set ...
The Georgia General Assembly convened at 10 a.m. today (Jan. 12) under the gold dome in Atlanta for the 2004 legislative session.

LEGISLATIVE UPDATE -- January 12, 2004, Issue No. 1

Governor's Remarks
Continued from Page 1...
we will carry out our responsibility. We will pass a balanced budget that meets the real human needs of Georgians. We will succeed in this task by doing three simple things.
One, we must stay focused on our most important priorities -- children, education and job creation. Two, we must actively and aggressively seek greater efficiency and effectiveness by changing the way we do business in state government. And three, I believe the citizens of Georgia expect us to

live within our means. That means simply no tax increases.
These simple principles are embedded in the Amended FY 2004 Budget I present to you today.
After last year's session and during the summer, it became clear that projected revenues for this 2004 budget would not keep pace with our final revenue projection on which the original 2004 budget was based.
... I am recommending less than the full 2.5% reduction for a handful of agencies. In each case this decision

was driven by growth in the populations served or it reflects my priorities of children and education.
... Education is another priority area in which we recommend a less than 2.5% reduction. This includes a midterm adjustment to the [Department of Education's] Quality Basic Education formula of $118 million. This reflects a 1.75% growth in enrollment.
In the [Department of] Education budget, we are also adding $8.8 million for a mid-term adjustment to equalization grants for poorer schools; $1.8

million of additional funding for Criterion Reference Competency testing in support of our education accountability system; and $9 million in lottery funding to the Office of School Readiness to meet increased enrollments in the Pre-K program.
... I am confident that my Amended Fiscal Year 2004 Budget recommendation meets those principles of caring for children, education and jobs, bringing greater efficiency to government, and living within our means.

Chancellor
Continued from Page 1...
million total in cuts is the equivalent of all state funds received by 21 of our institutions. That's more than half of our 34 institutions."
But just because the University System's campuses have continued to stress a quality academic environment despite the record number of students enrolling doesn't mean these cuts haven't hurt, the chancellor hastened to add. "There has been an impact. There have been consequences, and these cuts have hurt deeply."

Returning to his itemized review of the Amended FY '04 Budget, Meredith pointed out to the legislators that the Governor has recom-

fessional Standards Commission to the USG budget for the operation of the state's Leadership Institute for School Improvement.

mended appropriating

"The Board of

$1.56 million to fund Regents has taken on

an increase in the em- this responsibility for

ployer's contribution to the state, and this

the Optional Retire- transfer of funds sim-

ment Plan (ORP). The ply aligns the budget

plan was created by

with the responsibility.

the General Assembly This is not new

to give USG faculty

money," the chancellor

members a greater

stressed. "It is a con-

choice of retirement tinuing program that is

systems.

being transferred to

Another recom-

our budget."

mended budget addi-

In the University

tion is to transfer

System's B Budget --

$906,381 from the Pro- covering funding for

-- 2 --

Chancellor Meredith addresses the Joint Appropriations Committee on the Amended FY `04 Budget.
specific activities and functions such as the University System Office, Georgia Public Library Service, cooperative extension services
See "Chancellor," Page 3 ...

Chancellor
Continued from Page 2...
and agricultural experiment stations -- the chancellor pointed out another $4.68 million in cuts due to the 2.5 percent reduction.
He also noted that Gov. Perdue has recommended $1.25 million for Georgia Library PINES (Public Information Network for Electronic Services), an initiative of the Georgia Public Library Service.

"This money will provide critical operational continuation funding for this automation system and lending network used in the operation of 44 of Georgia's 58 public library systems that serve 50 percent of Georgia's citizens," Meredith said. He explained that PINES has created a statewide "borderless" library that provides equal access to books and information for any citizen, regardless of where they live.

"For example, a resident of Crawfordville needs information on resumes and employment. His local library has 25 relevant items, but because he has a PINES card, he can search the online PINES catalog for books related to resumes and employment and find 720 relevant items," Meredith said. "The book he selects may physically be located in a library in Quitman, but he can have that book deliv-

ered to his home library in Crawfordville with no charge to him.
"PINES is a national model for resource sharing and interlibrary cooperation, and results in significant cost savings to Georgia taxpayers while improving library services," the chancellor said in concluding his remarks. "The Governor's $1.25 million recommendation will help keep PINES operating and serving Georgians."

Higher Education Committees Remain Stable for 2004

The leadership and membership of the Senate's Higher Education Committee will remain the same for the 2004 session. Heading the committee are: Bill Hamrick of Douglasville, chair; Seth Harp of Midland, vice chair; and Brian Kemp of Athens, secretary.
Senators on the

committee include Tim Golden of Valdosta, Randy Hall of Augusta, Kasim Reed of Atlanta, Mary Squires of Norcross and Robert Lamutt of Marietta (ex officio).
The leadership of the House Higher Education Committee also has remained stable: Louise McBee of Athens, chair; Pat

Gardner of Atlanta, vice chair; and Lee Howell of Griffin, secretary.
There are two new members on the House committee: Gail Buckner of Jonesboro and Bob Smith of Watkinsville. They join representatives Ron Borders of Valdosta, Tom Buck of Columbus, Barbara Mobley of

Decatur, Quincy Murphy of Augusta, DuBose Porter of Dublin, Calvin Smyre of Columbus, Sharon Cooper of Marietta, Bill Hembree of Douglasville, Calvin Hill of Woodstock, Chuck Martin of Alpharetta, Ed Rynders of Albany and Len Walker of Loganville.