Legislative update: a briefing for faculty and staff of the University System of Georgia, No. 14 (Apr. 13, 2004)

LEGISLATIVE UPDATE
A Briefing for Faculty & Staff of the University System of Georgia
"Creating A More Educated Georgia"
No. 14, April 13, 2004
Legislators Okay FY '05 Budget with Formula, MRR Funds, Money for ICAPP, PINES, Major/Minor Capital Projects
Georgia legislators approved a $16.4 billion state budget for Fiscal Year 2005 in the waning hours of the General Assembly's 2004 regular session on April 7.
"In all, we have done extremely well in the FY '05 Budget, making gains in several areas," Chancellor Thomas C. Meredith told members of the Board of Regents. "We have done extraordinarily well in the bond package and formula funding. We also have gained ground in our reductions for public service institutes and special funding initiatives. We are grateful to and appreciative of the Governor and the General Assembly for their strong support of the University System of Georgia."
Gov. Perdue has indicated he plans to call a special session of the legislature, as the budget passed is $57 million short of funding. As of today, he has not announced when the special session will be held.
The budget adopted last Wednesday supports the formula recommendations of Gov. Sonny Perdue in their entirety, including $108 million in enrollment funds, $8.2 million for the maintenance and operation of new square footage added to the University System's facilities, $4.8 million for health and life insurance for new System retirees, and $1.5 million to cover rate increases in the System's Optional Retirement Plan. It also includes $55 million of the $60 million the Governor recommended to cover major repairs and renovations (MRR) of the University System's aging facilities.
The General Assembly allotted $18.8 million in support of the Governor's recommendation for a salary increase for all faculty and staff, but the increase is not effective until Jan. 1, 2005.
Although the budget carries forward the 2.5 percent budget reduction from FY '04 and the additional 5 percent reduction for FY '05, these reductions were offset by funds added back for several of the University System's special funding initiatives, public service institutes and "B unit" budget items.
For example, during final negotiations, the following funds were added for these special funding initiatives:
z $560,000 for the Water Policy Research Center operated jointly by Georgia State University, Georgia Southern University and Albany State University;
z $188,000 for enhancing access to the University System through programs at the Liberty Center, a facility operated by Armstrong Atlantic State University, Georgia Southern University and Waycross College;
z $1.77 million in continuation funding for the Intellectual Capital Partnership Program (ICAPP); z $200,000 for an ICAPP project at Macon State College; and z $96,233 to support the information technology program at Georgia Southern University.
Funds added back for public service institutes, included: $316,388 for the Georgia Teacher Center at Kennesaw State University, $58,521 for the Center for Trade and Technology Transfer, and $12,014 for the Fiscal Research Center, both based at Georgia State University. In addition, the following funds were added for University of Georgia institutes: $238,295 for the Georgia Center for Communications, $105,464 for the University Press, $100,513 for the Carl Vinson Institute, $49,612 for the Small Business Development Center and $22,729 for the Institute of Higher Education.
Funds added back for "B Unit" budget items included: $122,789 for the Georgia Tech Research Institute (GTRI), $75,000 for the Agricultural Technology Research Program and $65,000 for the continuation of research on

Formosan termites at the University of Georgia's agricultural experiment stations.
The House and Senate also agreed on Wednesday to restore funding for the Medical College of Georgia's research initiative at the full $5 million recommended by the Governor and to allocate $1 million for the state match for Fort Valley State University's land-grant mission and $1 million for the Georgia Tech Regional Engineering Program (GTREP). They also allotted $3.5 million for Georgia Library Learning Online (GALILEO), In addition, they:
z provided $900,000 to the Georgia Public Library Service (GPLS) to fund Georgia Library PINES (Public Information Network for Electronic Services);
z added back $350,000 to the GPLS budget to fund grants for public libraries; z provided an additional $420,000 for the Cooperative Extension Service; and z restored funding in the amount of $236,889 for the Center for Civic Renewal and Engagement and $80,000
for the Institute of Community Business Development.
In the capital budget, the House and Senate ultimately endorsed the Governor's recommendations for five University System major capital priority projects, allotting:
z $26.5 million for a new social science building at Kennesaw State University; z $7.1 million for a student center at Georgia Perimeter College; and z $16.3 million for campus utilities at Middle Georgia College; z $35 million for a performing and visual arts center at the University of Georgia; and z $2 million to initiate the pre-design and design of an advanced-clean-room facility at Georgia Tech. z The Animal Health Research Center at UGA also received $10 million.
The legislature also allocated the following funds to minor capital priority projects recommended by the Governor:
z $5.4 million for a dormitory renovation at Middle Georgia College; z $5 million for improvements to campuswide facility infrastructure at Georgia State University; z $5 million for Phase III of the fine arts building at Georgia Southern University; z $5 million for infrastructure improvements to a gift of land at the State University of West Georgia; z $5 million to renovate the library/learning resource center at Macon State College; z $5 million for a new science building at South Georgia College; z $5 million for an academic instructional facility at the Gwinnett University Center; z $4.9 million to renovate Drew-Griffith Hall at Savannah State University; z $4.85 million to renovate and expand the student center at East Georgia College; z $4.8 million for an academic services building at Darton College; z $4.7 million for a nursing education building at Abraham Baldwin Agricultural College; z $4.7 million to renovate classroom space and the physical education building at Coastal Georgia
Community College; z $4.6 million to renovate Wheatley Hall at Georgia Southwestern State University; z $4.5 million for infrastructure improvements and the Student Success Leadership Center at Columbus State
University; z $4.4 million for storm- and sanitary sewer improvements at Augusta State University; z $4.2 million for the campus-wide replacement of heating and air-conditioning equipment at Gainesville
College; z $3.9 million for facility infrastructure improvements at Floyd College; z $3.8 million to upgrade the electrical system on the Clarkston campus of Georgia Perimeter College; z $3.6 million to renovate the administration building at Clayton College & State University; z $1 million for a classroom addition at Bainbridge College; z $1 million to design a dining facility and renovate the 4-H facility at Rock Eagle; and z $750,000 to renovate Hill Hall at Savannah State University.
In addition, legislators agreed to allot $277,000 in planning and design funds for a Success and Retention Center at Gordon College.
During final negotiations, the House and Senate also agreed to add funds to the budget for five public library projects:

z $2 million for a public library in South Bibb County; z $2 million for the Forsyth County Public Library; z $2 million for the East Coweta County Public Library; z $840,000 for library construction in Bartow County; and z $500,000 for library expansion in Wheeler County.
HOPE Scholarship Reform Bill Passes Legislature
On the final day of its 2004 regular session, the Georgia General Assembly passed legislation designed to maintain the financial health of the HOPE Scholarship program.
"The plan passed today will maintain HOPE through at least 2010," said Gov. Sonny Perdue in a statement he released commending the Legislature for having made "great strides toward preserving the HOPE Scholarship for future generations."
"I am pleased that the members of the General Assembly have reached agreement on this important issue," said Shelley Nickel, executive director of the Georgia Student Finance Commission (GSFC), the state agency that administers HOPE. "This is a good bill, and it reflects the legislators' strong commitment to preserving HOPE for years to come."
A study commissioned by the legislature last year found that future revenue from the state lottery soon will fall short of the growing cost of providing HOPE to eligible Georgia students, unless changes are made to the popular scholarship program.
The legislation that passed the House and Senate last Wednesday would tighten HOPE academic eligibility requirements, tie future payments for books and student fees to revenue levels, implement more frequent checking of students' academic progress and establish an oversight committee to monitor all lottery-funded programs. If signed into law by the Governor, House Bill 1325 will result in the following changes to the HOPE program:
z Academic eligibility requirements. Beginning with the 2007 graduating class, high-school graduates must have a grade-point average (GPA) of at least 3.0 to be eligible for HOPE. This represents a tougher standard than the 80-or-higher numerical average currently used, and is expected to reduce HOPE expenses by $41 million in Fiscal Year 2008;
z Book allowance. HOPE scholars will continue to receive up to $300 per academic year to cover book purchases, until the lottery program's year-end balance drops below that of the previous year. If and when that happens, the book allowance will be reduced to $150 per year, an impact of $22 million. If the year-end balance drops a second time, the book allowance will be eliminated (another $22 million). These measures will not affect students eligible for Pell grants;
z Student fees. Beginning this fall, HOPE payments to cover student fees will be capped at the level paid on Jan. 1, 2004. HOPE scholars will be responsible for paying the difference between the current fees and future increases. If the lottery's year-end balance drops a third time, payments for student fees will be eliminated. This will reduce expenditures by $77 million;
z Academic progress. Effective July 2004, the academic progress of HOPE scholars will be checked more frequently. Currently, students' grades are checked at the end of 30, 60 and 90 semester hours to determine if they have maintained eligibility for the scholarship. Those checks will continue, but an additional check will be made each spring for full-time students. The grades of part-time students will be checked after they have received HOPE for three terms. It is not known what kind of impact this measure will have on costs;
z Hour cap. Effective this summer, students receiving HOPE Grants (for those enrolled in certificate and diploma programs at public technical colleges) will only be able to use the grant for 63 semester or 95 quarter hours, with an overall HOPE credit-hour cap of 127 semester hours or 190 quarter hours (combined grant and scholarship hours). This is expected to reduce the cost of providing HOPE by $2.2 million in FY '05;
z HOPE Joint Enrollment. Effective Fall 2004, the lottery will pay for students taking college courses while earning college and high-school credit. All hours associated with those courses will count towards the HOPE hour caps of 127 semester hours or 190 quarter hours; and
z Oversight. The bill establishes a joint legislative committee to monitor HOPE, Pre-kindergarten and other programs that receive state lottery funds.
"Only time - and lottery revenues - will tell if further changes are needed down the road," said Nickel. "In any case, the legislation is a good foundation, and I am confident that the Governor, the legislature, and the new oversight committee will take whatever action is necessary to preserve the fiscal integrity of the program. HOPE will continue to reward academic excellence and make a college education more affordable for future generations of Georgia students

Legislative Update will resume publication when Gov. Sonny Perdue calls legislators back for a special session. Last modified: April 14, 2004 [ Top ] [ Legislative Update ]
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