Annual report of the University System of Georgia, fiscal year 2012 [2012]

BOARD OF REGE

NTS OF THE UNIV OF G EORGIA

ERSITY SYSTEM

Annual Report of the University System of Georgia Fiscal Year 2012

Table of Contents

Letter from the Chairman

5

Letter from the Chancellor

6

Year in Review

8

BOARD OF REGENTS

NEW LEADERSHIP

UNIVERSITY SYSTEM FOUNDATION

MICROCREDIT CONFERENCE

LEGISLATIVE AFFAIRS

FY12 BUDGET REVENUES AND EXPENDITURES

TUITION

ECONOMIC IMPACT

ENROLLMENT

GRADUATION

Major Initiatives

20

COMPLETE COLLEGE GEORGIA

CONSOLIDATION

SPACE UTILIZATION

FACILITIES

ONLINE EDUCATION

RISK MANAGEMENT

MILITARY EDUCATION

PARTNERSHIP WITH TECHNICAL COLLEGE SYSTEM

Acknowledgements

26

4

Letter from the Chairman
April 2013
It's not often that both the Board Chair and Chancellor have their first day on the job on the same day. But that is the boat in which both Chancellor Hank Huckaby and I found ourselves on July 1, 2011, as we began a voyage together.
Fortunately, we had companions in this boat with wisdom, energy and experience to help us row, steer and navigate to chart our course and help us weather the inevitable storms. We are blessed in Georgia with a strong University System comprised of an excellent Board of Regents, outstanding presidents and dedicated faculty and staff. We continue to be supported by elected leadership in both the Governor's Office and the General Assembly who understand the critical value of the University System to the State's future.
Above all, we are blessed to be able to help approximately 318,000 students realize their educational goals and contribute to Georgia's long-term vitality and economic growth.
Over the past year, under Chancellor Huckaby's leadership, we have truly charted a new course as we work to transform the University System in ways to meet new realities with different models. Whether it is our work in Complete College Georgia, the consolidation of institutions, or other areas, we are focused on ensuring the University System understands the needs and is responsive in ways that are both efficient and effective.
In this light, I hope you get a flavor of our work over the past year in the pages of this Annual Report. More importantly, I hope you see the faces and read the stories that underlie all of our efforts the students we serve every day, across this great state.
Benjamin Tarbutton III Chair Board of Regents

University System of Georgia Annual Report FY12

5

Letter from the Chancellor
April 2013 As I noted when I was appointed Chancellor, it's a job I never expected to hold in my career in the University System and in Georgia's state government. But I have studied higher education closely and I welcomed the rare and great opportunity to give back to this great University System and this state. In my first year, I gained an even deeper appreciation for the size and complexity of both the System and the challenges we face in serving as the key economic engine for the state. We have a big and important job to do. We must educate a larger number of people from broad and different backgrounds to ever higher levels if Georgia is going to have the talent it needs to compete on a world stage. We must do this in an era of tight resources and very high expectations. Now we are engaged in an ambitious effort to remake the System to serve students in new ways with new approaches to teaching and learning. We are committed to the honest, hard work necessary to ensure the University System works and works exceptionally well on behalf of student and state needs. At the outset of my chancellorship, I said our work would be defined by three broad themes: performance, partnerships and values. Everything we have initiated and accomplished to date has been grounded in these themes. More than anything else, I want us to remain focused, not on our processes and procedures, but on our results. And these results are found, not in our classrooms or walking through our campuses, but in offices, on farms, in K-12 schools, hospitals, businesses and organizations in every town and community in Georgia. These are the graduates of our institutions whose lives we have transformed and whose contributions will lead to the transformation of countless others. It's an exciting journey and one that promises great rewards for Georgia.
Hank Huckaby Chancellor University System of Georgia
6

7

FY12 Year in Review
An Annual Report on the USG
"The University System of Georgia will create a more educated Georgia, well prepared for a global, technological society, by providing first-rate undergraduate and graduate education, leading-edge research, and committed public service."
8

OVERVIEW
Performance, partnerships and values these three themes became the mantra for the University System of Georgia (USG) in 2011 as its new chancellor, Henry "Hank" Huckaby took the reins of leadership on July 1. Huckaby, an experienced veteran of both the USG and state of Georgia government, had been appointed the System's 12th chancellor by the Board of Regents in May. He came to the job with a self-admitted passion for higher education and a keen sense of direction for the state's 35 public colleges and universities.
This direction quickly became clear as Huckaby launched an aggressive tour of all the USG's institutions, where he met faculty and staff, listened to students and learned of the System's strengths and weaknesses.
During this tour, Huckaby repeated his intention, first outlined in his initial report to the regents, to develop programs and make decisions grounded in improving the performance of the System, strengthening partnerships with others in education, government and business, and stressing the great value of the System to the state, as well as the key values higher education provides to students.
Huckaby was joined in his efforts by new leadership on the regents, chair Benjamin J. Tarbutton III and Vice-Chair Dink NeSmith. Both regents worked closely with Huckaby over the ensuing months to put in place significant changes to how the System is configured and operates. "The board is here to help and support you. It is high time to look at some of these critical issues," said Tarbutton.
Over the course of the year, Huckaby brought in a new senior management team to assist him and the Board in the realization of these efforts, including Dr. Steve W. Wrigley as executive vice chancellor for Administration, John Brown as vice chancellor for Fiscal Affairs, and Dr. Houston Davis as executive vice chancellor and chief academic officer.
As the months of the Fiscal Year 2012 (FY12) unfolded, the board and Huckaby worked to launch a number of important initiatives designed to address the three themes and, in Huckaby's words, change the culture to one truly focused on working as a unified system of colleges and universities with a single-minded focus on serving students.

These new initiatives also had a goal of changing the perceptions of outsiders by demonstrating the System understands state needs, is a key player in the state's economic development and is responsive to calls for conservative fiscal management and bold new approaches to serving more students in different ways than the past.
As Huckaby noted, the System is dealing with two counter-forces hitting public higher education at the same time the need to increase college completion rates in a period of permanent declines to state funding of colleges and universities.
Over the course of the FY12 year, even as the System managed through an ongoing sluggish economic recovery and saw continued enrollment growth to a new high of 318,000 students, work began on a number of efforts all connected by the chancellor's three themes.
These included: A study of how the institutions utilize existing
space, with the goal of using this space more efficiently;
A change from a culture of silo-making decisions to one in which proposals are reviewed and decisions made on facilities needs, budgeting, fees and academic programs in an integrated approach that brings to the table different departments;
A change in how the System plans and constructs facilities, again, to a more integrated approach to the needs of the institution and the state;
A System-wide review of online learning to develop recommendations to strengthen the scope, reach and consistent quality across the System;
The consolidation of eight institutions into four new ones;
A new and broad articulation agreement with the Technical College System of Georgia, designed to broaden transfer options for students; and

The System's participation in Governor Nathan Deal's "Complete College Georgia" effort, designed to increase the numbers of Georgians completing some level of college by an additional 250,000 degree earners by 2020.
During FY12, the System also took a seat at the table as the Governor's Formula Funding Commission began its work to undertake the first review since the 1980's of the formula used to appropriate funds to the USG. This review includes an assessment of how to reward institutions not just for input enrollment but output increased graduation rates.
A key factor in increasing college completion rates is the costs students bear to attend. In April, the regents approved a very conservative tuition strategy of a 2.5 percent increase that was, at 32 USG institutions, the lowest percentage increase since fiscal year 2003 for the majority of in-state undergraduate students.
As Huckaby has noted, public higher education today operates in a "new normal" in which the good stewardship of state resources means fundamental changes in how the University System operates. "This is why I have stressed the need to focus on performance, partnerships and value to help us change and improve how well we use our resources to educate students and encourage faculty," Huckaby said to the Board when he announced plans to consolidate institutions.
All of the new initiatives were well underway as the System closed its books on FY12 and looked ahead to FY13. This annual report highlights these key initiatives as well as other key developments in the System over the course of the fiscal year.

University System of Georgia Annual Report FY12

9

FY12 Year in Review
An Annual Report on the USG
FISCAL YEAR 2012 MEMBERS OF THE BOARD OF REGENTS
Standing (L to R): W. Mansfield Jennings Jr., Larry Walker, C. Dean Alford, Kenneth Bernard Jr., Robert Hatcher, Neil Pruitt Jr., Kessell Setlling Jr., C. Thomas Hopkins Jr. M.D., Richard Tucker, Rutledge Griffin Jr., Philip Wilheit Sr., Doreen Poitevint. Seated (L to R): Larry Ellis, Donald Leebern Jr., Chairman Benjamin Tarbutton III, Chancellor Henry Huckaby, Vice Chairman William NeSmith Jr., James Jolly, Willis Potts Jr.
Gubernatorial Appointment During FY12, Gov. Nathan Deal appointed one new member to the Board of Regents. C. Dean Alford was appointed in January 2012 and serves the Fourth District.
10

NEW LEADERSHIP

(L to R): University of Georgia Chancellor Henry "Hank" Huckaby, Board of Regents Chairman Benjamin Tarbutton III, Georgia Governor Nathan Deal

Chancellor's Investiture
In Nov. 2011, Henry "Hank" Huckaby was formally invested as the University System of Georgia's 12th chancellor, pledging to dignitaries and guests to help effect a transformation to a more highly educated Georgia and thanking them for the opportunity to lead the System.
"There is much to be proud of in the University System of Georgia," Huckaby said. But he noted, "higher education today faces the challenge of becoming more than it has been in the past." To meet that challenge, he is focusing the System on three long-term strategies: performance, partnerships and value. "The goal is not merely to have more. It is also to be more," he said. "The University System will be the state's most powerful economic asset."
Huckaby's remarks concluded the investiture ceremony in the historic House of Representatives Chamber at the state capitol in Atlanta. Gov. Nathan Deal conducted the

formal investiture ceremony of the chancellor.
Deal said, "Chancellor Huckaby has proven time and again even early in his tenure that he's the right person to lead our University System through challenging times. Chancellor Huckaby has long enjoyed deep respect for his many years of excellent public service to the people of Georgia, and that admiration will expand as more see the extraordinary work he's performing at our University System. The chancellor has experience, the ability and the vision we need to build on the progress we have made in Georgia. He will lift our University System to the next level of excellence."

University System of Georgia Annual Report FY12

11

FY12 Year in Review
An Annual Report on the USG
There were a number of changes in USG leadership as well as ten presidential/interim-presidential appointments in FY12.
In the University System Office
Dr. Steve W. Wrigley was named executive vice chancellor for administration for the University System of Georgia, effective July 1, 2011. Wrigley was the interim vice president for Public Service and Outreach as well as vice president for government relations for the University of Georgia (UGA) and a longtime UGA senior staff member. He is a veteran of state government under former Gov. Zell Miller.
John Brown was named vice chancellor for fiscal affairs for the University System of Georgia, effective July 1, 2011. Brown is responsible for overseeing the financial operations of the University System, including its annual budget. He was also named treasurer for the University System's governing body in August 2011. Brown has served the State of Georgia for more than 26 years with a focus on budget and finance. His most recent service was in the Georgia House of Representatives as director of the House Budget Office, from 2005 to 2011.
After a national search, Dr. Houston Davis was named as the University System of Georgia's new chief academic officer and executive vice chancellor on February 27, 2011. He began his new duties in the Georgia system on May 1, 2011. The executive vice chancellor/chief academic officer is responsible for meeting the academic needs of more than 300,000 students and approximately 13,000 University System faculty members. Davis was the former vice chancellor for Academic Affairs for the Oklahoma State Regents for Higher Education, a system consisting of 25 universities and colleges as well as constituent agencies.

At University System Institutions
Dr. Max Burns, former dean of the Mike Cottrell School of Business at North Georgia College & State University, was named president of Gordon College in October 2011, replacing Ms. Shelley Nickel who served as interim president since July 2010 after Dr. Lawrence Weill retired in June 2010.
Dr. Robert G. Boehmer, associate provost for academic planning at the University of Georgia, was named East Georgia College's interim president in November 2011, succeeding Dr. John Black, who led East Georgia College for the previous seven years.
Dr. Shirley Kenny, who served as president at two institutions Queens College, City University of New York and for the State University of New York at Stony Brook, was named Augusta State University's interim president in April 2012, succeeding Dr. William Bloodworth, who led Augusta State University for more than 18 years until his retirement.
Dr. Randy Pierce, who served as president of Georgia Highlands College for over 11 years until his retirement in December 2011, was named Gainesville State College's interim president in April 2012, succeeding Dr. Martha T. Nesbitt, who led Gainesville State College for more than 14 years.
Dr. William McKinney, who served as vice chancellor for Academic Affairs at Indiana University-Purdue University Fort Wayne, was named president of Valdosta State University in April 2012, replacing Dr. Louis Levy who served as interim president since July 2011 after Dr. Patrick Schloss retired in June 2011.

12

Dr. Renva Harmon Watterson, vice president for Academic and Student Affairs at Georgia Highlands College, was named Georgia Highlands' interim president in May 2012, succeeding Mr. Rob Watts, who served as interim president since January 2012 after Dr. Randy Pierce retired in December 2011.
Mr. Rob Watts, who served as interim president for Georgia Highlands College from Jan. 2012 to May 2012, was named interim president for Georgia Perimeter College in May 2012, succeeding Dr. Anthony Tricoli, who led Georgia Perimeter College for more than five years.
Dr. Cheryl Davenport Dozier, former associate provost for Institutional Diversity at the University of Georgia, was permanently appointed as president of Savannah State University in May 2012 after having served as interim president of the university since April 2011.
Dr. John Black, retired president of East Georgia State College, was named interim president of Macon State College in June 2012, succeeding Dr. Jeffery S. Albritten, who resigned in June 2012.
Dr. Steve Michael Dorman, dean and professor in the College of Health and Human Performance at the University of Florida in Gainesville, was named president of Georgia College & State University in June 2012, replacing Dr. Paul Jones who served as interim president since July 2012, and who replaced Dr. Stas Preczewski who served as interim president from July 2011 to June 2012.

University System of Georgia Annual Report FY12

13

FY12 Year in Review
An Annual Report on the USG
UNIVERSITY SYSTEM FOUNDATION REGENTS' SALUTE TO EDUCATION

(L to R): Faculty Award Recipients: Donald M. Leebern III, Presenting Sponsor, Georgia Crown Distributing Company; Dr. Thomas Pusateri, Kennesaw State University; Dr. Mulatu Lemma, Savannah State University; Dr. Jessica Damian, Georgia Gwinnett College; Dr. Sybilla Beckmann, University of Georgia; Dr. Michael Metzler, Georgia State University; Kenneth R. Bernard Jr., Chairman, University System of Georgia Foundation

The University System of Georgia Foundation Board of Trustees hosted the 2012 Regents' Salute to Education at the Atlanta Marriott Marquis on March 31, with more than 900 guests, including representatives from colleges and universities, institutional foundations, distinguished faculty and administrators, and state and federal elected officials.

individual contributors, culminated in nearly $1 million in contributions in FY12.
The former president of Kennesaw State University, Dr. Betty Siegel, was presented with the Elridge McMillan Award for her lifetime work in supporting higher education.

This annual fundraiser raises funds for scholarships and outstanding faculty recognition awards, and to advance the work of the University System as a whole. Additionally, the event recognizes University System alumni who exemplify outstanding leadership and support of higher education in Georgia. This event, along with funds received from private foundation grants and

Also, the USG Foundation presented Gov. Deal with a $50,000 check to help fund the Governor's "Realizing Educational Achievement Can Happen" (REACH) scholarship program. All 35 USG institutions are participating in the REACH program, a needs-based scholarship funded by private dollars.

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MICROCREDIT CONFERENCE USG competition lets students solve social issues
Approximately 1,200 USG students were held spellbound by Nobel Prize recipient Dr. Muhammad Yunus during an October 2011 "Social Business and Microcredit" economic development conference hosted by the University System. "This is your age, this is your time," Yunus said. "You are the most powerful generation in the entire history of mankind."
Students responded positively to the message Yunus brought, but were equally receptive to his concept of microcredit, the extension of very small loans (microloans) to those in poverty designed to spur entrepreneurial activity, which Yunus pioneered and for which he was awarded the Nobel Prize.
The unique conference was part of a competition that required student teams to identify a social problem in the community, conduct a market analysis, develop a strategy to address the problem and prepare a social business plan based on the principles developed by Yunus.

In all, 38 teams made up of students from 35 USG institutions and three private colleges participated in the competition. The teams presented their proposals to judges in sessions during the Oct. 17 conference, held in Atlanta at Georgia Tech's Ferst Center.
Judges drawn from the private sector and higher education looked at the strength of each plan's business model, its financial requirements, its sustainability and the degree to which it meets the problem and generates social benefits in the community.
The winning entry, "Restoration Trust," by a team from Southern Polytechnic State University, envisions the creation of a company with a mission to improve the lives of victims of domestic violence.
Second place was Abraham Baldwin Agricultural College (Tifton), "Health Clinic." Third place was Georgia Gwinnett College (Lawrenceville), "Read4Life!" Fourth place was Valdosta State University, "Clean Sweep." Fifth place was Fort Valley State University, "Peach." Sixth place was Gainesville State College, "Sew Company."

(L to R):USG Chancellor Hank Huckaby and Dr. Muhammad Yunus at the Social Business and Microcredit Conference

University System of Georgia Annual Report FY12

15

FY12 Year in Review
An Annual Report on the USG
GOVERNMENT RELATIONS When he was appointed chancellor of the University System, Hank Huckaby held a job that no other previous chancellor could claim: as an elected member of the state legislature. Huckaby won a seat in the Georgia House of Representatives during the Nov. 2010 election cycle and had just finished his first legislative session when the Board of Regents elected him chancellor in May 2011.
This background, along with his extensive experience in state government and knowledge of the people and issues, created an opportunity to forge a new relationship with the Georgia General Assembly. Huckaby's outreach efforts to the state House and Senate were rewarded with one of the strongest legislative sessions in history for the University System.
State Funding For FY13, the General Assembly approved state funding of $1.83 billion, a net increase of $89.7 million (5.2 percent) over the FY12 funding base of $1.74 billion. This marks the first budget in a number of years in which all of the System's formula increase requests were funded.
"This was an excellent legislative session for the University System, and we deeply appreciate the investment that the General Assembly and the governor have made in public higher education with this budget," said Huckaby.
Included was: Net new formula funding of $77.9 million; $76.4 million for enrollment growth/maintenance
and operations; $16.7 million for health insurance and benefits; $14.6 million for retirement; and $830,680 for payback projects. $5 million to provide funds for cancer research
to the Georgia Health Sciences University Cancer Center; $2.4 million for the Health Profession Initiative to address a shortage in nursing educators with graduate degrees; and $1.2 million for the Health Professions Initiative to address graduate medical education in an effort to increase residency-training opportunities in Georgia (An additional $830,000 for the Georgia Board of Physician Workforce to develop residency programs was also in the budget).

The General Assembly also approved $326.8 million in new bond funding for projects throughout the System.
USG-relevant Legislation House Bill 863 Signed into law by the Governor This bill relates to state purchasing, "so as to change certain provisions relating to purchases without competitive bidding, central bid registry, procurement cards, rules and regulations, applicability to emergency purchases, and the Purchasing Advisory Council; to change a short title; to change certain provisions relating to definitions relative to small business assistance; to repeal conflicting laws; and for other purposes."
Senate Bill 37 Signed into law by the Governor This bill would allow the State Properties Commission and the USG to enter into multiyear lease agreements.
Senate Bill 302 Signed into law by the Governor The bill will increase the amount of bonding authority for the Georgia Higher Education Facilities Authority (GHEFA) from $300 million to $500 million. Through GHEFA, the USG is able to bond revenue-generating projects such as parking decks, bookstores and dorms.
Senate Bill 396 Signed into law by the Governor The legislation transfers the Herty Advanced Materials Development Center to the Board of Regents. Georgia Southern University will be responsible for the governance of the Center.
Several proposed bills that would have allowed individuals to carry concealed weapons into certain locations not previously allowed that are not under federal regulation including colleges, airports, churches and the state capitol and to prohibit attendance at all public colleges and universities by undocumented individuals did not pass. The University System opposed the adoption of these bills.

16

FY12 BUDGET REVENUES AND EXPENDITURES

All Others

FY2012 Revenue (in millions)
$579 $801

Restricted

$2,024 $2,161

Tui1on & Fees

$1,944 $1,999

Actual Final

State Appropria1ons

$1,705 $1,705

$0

$500

$1,000

$1,500

$2,000

$2,500

FY 2012 Expenditures by Program

$32,214,999 $174,685,052 $276,105,762 $25,773,250 $36,801,681 $11,791,808 $6,293,244
$5,688,436,418

Teaching Public Service/Special Funding InJaitves Research ConsorJum Public Libraries UGA "B" Units GA Tech "B" Units GHSU "B" Units Other (RCO, Skidaway, Pass--throughs)

University System of Georgia Annual Report FY12

17

FY12 Year in Review
An Annual Report on the USG
TUITION Concerned about the rising cost of college, the regents approved in April 2012 the smallest tuition increase seen in the University System in a decade a 2.5 percent increase at 32 of the 35 institutions.
"The board and I are very sensitive to the present economic realities facing our students and parents," said Chancellor Huckaby.
The Board also adopted a resolution that continues the special institutional fee, first enacted in 2009 to help offset lower state support due to the economic recession, at its current levels with some exceptions. The board will continue to review and evaluate the fee annually as part of the tuition and budget process.

responsible for 132,000 full- and part-time jobs more than 3 percent of all the jobs in the state.
ENROLLMENT Fall 2011 USG enrollment reached an all-time high of 318,027 students, an increase of 2.1 percent, or 6,585 students, from fall 2010 to fall 2011.
While up overall, enrollment growth was not even across the System. Enrollment increased at 23 institutions and decreased at 12, dropping primarily at the state and twoyear colleges.

Enrollment

Fall 2011 vs Fall 2010 Enrollment
Fall 2011 Fall 2010

350,000

300,000

250,000

200,000

150,000 100,000
50,000 --

14,581

16,650

851

883

84,106 20,235 89,454

20,595

442

Hispanic/La2no (of any race) American Indian or Alaska Na2ve

Asian

436

Black or African American

Na2ve Hawaiian or Other Pacific Islander

171,991 172,879

White

6,162 7,170

13,042 9,992

Two or More Races

Race Unknown or Undeclared

Race/Ethnicity

311,442 318,027
Total Current Enrollment

ECONOMIC IMPACT OF SYSTEM IS $13.2 BILLION An updated economic impact report released in July 2012 confirmed that while still in the midst of an economic downturn the USG continued to be one of the state's key economic engines.
Together, the 35 institutions of the system had a $13.2 billion economic impact on the state's economy during FY11, up from $12.6 billion in FY10.
In addition to the dollars generated, the USG was

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GRADUATION

Totals

Graduate Degrees

Degrees and Awards Conferred Fiscal Year 2012

Total Awards Total Graduate Awards Total Undergraduate Awards First Professional Degree
Doctorate Educa2on Specialist
Master Advance Cer2ficate
Bachelor Degree Career Associate Degree
Associate Degree 1 Year Cer2ficate Under 1 Year Cer2ficate

14,304
883 1,445 865
10,925 186
2,128 5,907
603 216

0

10,000

20,000

42,541

33,687

30,000

40,000

Number of Degrees

56,845

50,000

60,000

Undergraduate Degrees

University System of Georgia Annual Report FY12

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Major Initiatives
FY12 Year in Review
THE "NEW NORMAL" In a "new normal" of increased expectations for higher education but tighter state funding, a different approach is required in order to educate more students to higher levels.
As Chancellor Huckaby noted to the Board in September 2011, "Change is what drives us forward. Failure arises because organizations become victims of change that is, they don't adapt to the changing climate or a new environment. They cling tenaciously to the status quo. ...We in higher education need to embrace change and work to be its active agents and not its victim."
Over the course of FY12, Huckaby launched, and the Board of Regents endorsed, a series of changes designed to approach the University System's mission in a new way that reflects new realities.
These included the consolidation of institutions, space

utilization, the design and building of facilities, the integration of decision-making for academic programs, facilities and budgets, online education, and risk management.
Complete College Georgia The most ambitious, coordinated effort yet in Georgia to create a more highly educated workforce.
A 2011 Georgetown University study of national workforce needs found the nation including Georgia isn't producing enough individuals with some level of college completion. The study along with other reports galvanized a leading group of private organizations to launch a national "Complete College America" effort.
It is particularly important in Georgia, with its goal to move from the current 42 percent of Georgians with a oneyear certificate, associate's degree, or bachelor's degree to 60 percent by 2020. As the Georgetown study noted,

20

this is needed to be economically competitive nationally and globally, and it means an additional 250,000 individuals with some college degree over and above the current rate.

FOUR NEW INSTITUTIONS DEBUT JANUARY 2013
University of North Georgia

Plans were submitted to the Governor's office in September and national Complete College America officials are lauding Georgia for its fast and focused response.

Georgia, through the leadership of Governor Nathan Deal, was one

Middle Georgia State College

The campus plans include doing things differently new uses of

of the first states to sign on and,

technology, K-12's commitment

has emerged as one of the national South Georgia State College

for students entering "college

leaders and stars in efforts to focus

ready," a hard and honest look

on increasing college completion rates.

Georgia Regents University

at remediation, clarity about expectations and the goal of four-

The University System is a key partner in this ambitious effort,

For more on consolidation, visit: http://www.usg.edu/consolidation.

vs. six-year degree completion. One major market the USG seeks

along with the Technical College

to serve are the 1.3 million people

System of Georgia, independent

statewide who have some college

colleges and the Georgia Department of Education.

but never earned a degree. Many of these individuals

are first generation college, military, underrepresented

Launched in August 2011, the Georgia effort Complete

groups, or working parents. The USG campuses are

College Georgia (CCG) has been on the fast track and

exploring new models to restructure how higher

Huckaby has made it clear increasing college completion

education is delivered to attract and serve this huge pool

rates will be a top priority during his service as chancellor.

of potential degree earners.

"Because the gap is so wide, we have to think bigger; we have to use multiple strategies to attract, retain and graduate significantly more Georgians from among both traditional and non-traditional populations," said Huckaby.
In November 2011, the Board approved a broad plan of action. The plan calls for cooperation and lays the groundwork in three areas: (1) create new forms of collaboration and accountability among organizations responsible for or reliant on higher education, (2) continue to work with the Georgia Department of Education to increase the number of college-ready students graduating from high school, and (3) reevaluate and envision anew the performance of completion-related aspects of higher education.
In February 2012, Gov. Deal convened an unprecedented meeting of the presidents of institutions from both systems to hear from national leaders, including the Lumina Foundation, and to give them their charge and responsibilities to meet the ambitious goal.
The nuts and bolts started in March 2012 with a summit of campus staff from both systems, who met over two days in Athens to begin the work of identifying exactly how campuses would meet the CCG goals.

Consolidation The Board acts to restructure the System to better serve students; the consolidation of eight institutions into four is unprecedented in higher education.
In the fall of 2011, as Chancellor Hank Huckaby and the board analyzed the structure of the University System, they dealt with a reality outlined by Huckaby: "Our goal is a more educated Georgia, with a network of institutions that offer a range of needed degrees for 21st century demands. We are going to fulfill our mission within the limited resources available."
This reality led to the board's approval in November 2011 of six principles for consolidation as the Chancellor and his staff began to analyze all 35 USG institutions to determine which, if any, would be good candidates for consolidation.
In January 2012, Huckaby announced and the Board approved eight institutions for consolidation: Gainesville State College and North Georgia College & State University (Dahlonega); Middle Georgia College (Cochran) and Macon State College; Waycross College and South Georgia College (Douglas); and Augusta State University and Georgia Health Sciences University.

University System of Georgia Annual Report FY12

21

Major Initiatives
FY12 Year in Review
"Georgia needs more of its citizens completing some level of postsecondary education. But we have to achieve this goal by considering some different approaches approaches that put the needs of our students and the imperative to reach this goal first and foremost," Huckaby said. "These proposed consolidations are the right approach for us to take at the right time in the System and the State's history."
As the System works on the Complete College Georgia goals, creating new avenues for more students to enroll and complete college will be critical, and the consolidation will support this effort in the regions served by the new institutions.
In May, the Board approved mission statements for all four consolidations and new names for two of the consolidations.
The board approved the name University of North Georgia for the new institution created through the consolidation of North Georgia College & State University in Dahlonega and Gainesville State College. The consolidation of Middle Georgia College in Cochran and Macon State College resulted in the board's approval of an action plan that addresses the eventual move of the new institution from college to university status. As the first step of that plan, the regents approved the name Middle Georgia State College.
The final two names were approved by the Board in its August 2012 meeting: South Georgia State College for the consolidated institutions of South Georgia College (Douglas) and Waycross College (Waycross) and Georgia Regents University for the consolidation in Augusta of Augusta State University and Georgia Health Sciences University.
The news and subsequent consolidation work has captured national attention as other states and systems view Georgia's efforts. "We are viewed as a national leader in this effort," said Shelley Nickel, associate vice chancellor for Planning and Implementation, who is leading the consolidation work.
As implementation teams on the consolidated campuses have worked on the details, all eyes have been focused on ensuring that students will see an increase of educational offerings, through

traditional classroom delivery and the increased use of distance learning.
The recommended consolidations also will create opportunities for new research and service efforts to strengthen the educational experience of both students and faculty.
Other benefits of consolidation are increased administrative efficiencies and greater economies of scale through the creation of larger institutions better able to serve students. While a reduction in administrative costs and functions is a goal, savings realized will be reinvested into the instructional mission to serve students.
The new names became effective upon the new institutions receiving approval by the Southern Association of Colleges and Schools (SACS) and the Board of Regents in January 2013.
Space Utilization As the demands for classrooms, labs and other space increases, University System officials are mindful of the state's limits in terms of funding new construction. To better understand how the space is used in existing buildings, the System launched in the fall of 2011 a space utilization study.
Phase one of the space utilization study assessed the use of space at Southern Polytechnic State University, Abraham Baldwin Agricultural College, Clayton State University, Columbus State University, Savannah State

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University and Georgia Perimeter College.
Key observations from the study include: the need for campuslevel leadership to promote a new culture of institutional ownership, and for investments in existing buildings that focus on enhancing utilization and enabling space to be used more effectively, and reducing operating costs. The study shows that more consistent metrics are needed to compare and reveal utilization opportunities.
Executive Vice Chancellor Steve Wrigley said that in the future space utilization will play a role in strategic decisions for capital planning and prioritization, and will inform budgeting decisions. "We have to change our culture from one that looks at space as someone's property into one that rewards efficiency and considers space as a resource," said Wrigley.
Facilities During FY12, the University System changed how institution needs for new or renovated facilities are evaluated, and how facilities are planned and designed. Collectively these changes help balance the level and diversity of available funding sources, and ensure the timely delivery of quality, affordable and flexible buildings that directly support academic and student support needs.
Consistent with Chancellor Huckaby's theme to approach decisions from a more holistic perspective, the University System implemented an evaluation process for proposed facilities projects that involves collaborative review of facilities, financial, and academic needs. Projects subject to this review include new construction, renovations of existing facilities, property leases or rentals, and purchase of real property. Projects proposing revenue financing are scrutinized to ensure revenues are sufficient to support the projects and to minimize proposed increases in student fees.

Chancellor Huckaby also reached out to institutions and the architects, engineers and contractors that design and construct our facilities to deliver a message about "responsible" design. During project kickoff meetings with institutions and external stakeholders, the importance of delivering facilities that are costeffective, efficient and flexible were emphasized. This commitment to affordability and efficiency of space is further underscored by the inclusion of eleven small capital projects in the FY14 capital budget request approved by the Regents. These projects, which total just over $33M, range from $1M to $5M each and focus on increasing the functionality and yield of existing space to meet critical academic program needs.
Online Education One of the challenges in educating more Georgians and seeing more Georgians complete college is how to broaden access and the delivery of academic programs in an era of tight resources.
Technology offers a possible solution, particularly through the use of distance, or online education. However, to be effective, online education must not only work well from a technology standpoint, but it must meet the changing needs of students and offer consistent, high academic quality.
In February 2012, Chancellor Huckaby announced a new group charged with reviewing how the System's colleges and universities currently use the technology of distance education and make recommendations on how to better serve students.
"The economic future of Georgia depends upon more Georgians completing some level of college education," said Huckaby. "We have to make better use of our distance education resources and ramp up our efforts to help us meet state workforce needs."
Southern Polytechnic State University President Lisa Rossbacher was named to head the new Distance Education Task Force comprised of nine members from the USG.

University System of Georgia Annual Report FY12

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Major Initiatives
FY12 Year in Review
Task force members are working with Jon Sizemore, who was appointed in October 2011 as interim assistant vice chancellor for Distance Education, and others in the system with expertise in the areas of distance education, academic programming and delivery and information technology.
Currently, 3,525 course sections through the System's 35 institutions are taught online, in more than 210 online degree programs. The System's online Learning Management System, which supports classroom instruction and hybrid courses, as well as fully online courses, is utilized by more than 318,000 students.
Risk Management Managing key risks and adhering to the University System's core values of integrity, excellence, accountability, and respect is an integral part of Chancellor Huckaby's focus on performance. Over the past year, Southern Polytechnic State University President Dr. Lisa Rossbacher has led a Presidential Task Force on Risk Management. This task force has made considerable progress in implementing the Board Policy on risk management at each of our USG institutions. Every institution has identified those responsible for risk management and many institutions have progressed to the point of identifying key risks and actively implementing measures to reduce the potential downsides associated with those risks.
A commitment to transparency and accountability is evident throughout this program. The Board of Regents has been regularly updated on the USG's progress in implementing the Risk Management program. Additionally, the board has been updated on the successes and ongoing efforts to meet the challenges in managing selected key risks. For example, the Board heard plans to achieve Complete College Georgia

objectives and to address those risks that might prevent progress in this area.
The board also adopted a comprehensive Compliance Policy. The Compliance Policy brings together efforts around ethics training and certification, the ethics and compliance hotline, and efforts to ensure compliance with federal, state, and local laws. Full implementation of the compliance policy will ensure a continued highlevel focus on compliance and will also ensure that the USG is fully aware of and actively managing the many
compliance requirements inherent to the USG's teaching, research and service mission.
Military Education The University System is committed to serving the educational needs of Georgia's military service members, spouses, families, National Guard members, reservists and veterans. With 111,000 personnel stationed in the state and 780,000 veterans, Georgia is home to the fifth largest active duty population in the nation.
As a strategy of the Complete College Georgia plan, USG schools are working to expand on-campus, onbase, and online programs to better serve military students. A USG/TCSG Joint Military Education Task Force, with leadership from North Georgia College Vice President for Executive Affairs Col. Billy Wells (Ret.), has been meeting to develop specific courses of action for Georgia's public colleges and universities to collaborate on military education initiatives. One outcome has been a revision of Board policy to lower out-of-pocket expenses for active duty service-members who depend on military tuition assistance to pay for college. To inform these efforts USG is progressing on the collection of military status data at the time of admission, and on development of the Georgia Transfer Articulation Cooperative Services (GATRACS) transfer articulation tool to help military

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students receive appropriate college credit for military training.
University System representatives met with Education Service Officers at Ft. Stewart and Ft. Benning, participated in the inaugural Georgia Warrior Alliance Summit and provided an information booth at the triennial Department of Defense Worldwide symposium. Twenty-two USG institutions provide military outreach centers on their campuses and 12 institutions participate in USG Soldiers to Scholars program to help those in military service make the transition to civilian life by means of a college degree. Twenty-six USG institutions are participating in the Department of Defense Voluntary Education Partnerships, and 26 institutions have committed to the Department of Veterans Affairs Principles of Excellence Program. The USG Adult Learning Consortium has sponsored extensive training to campuses on using recommendations from the American Council on Education to provide college credit for learning gained through the military.
Georgia's adult and military outreach efforts are funded through the College Access Challenge Grant from the U.S. Department of Education.
Partnership with Technical College System In the fall of 2011, the Board of Regents approved a historic new articulation agreement with the TCSG, one designed to help students transfer between the two systems and remove obstacles to college completion.
The new agreement took effect in January 2012 and the regents quickly followed up in March 2012 by approving an additional 17 general education courses in the Technical College System of Georgia as transferable to the USG for credit in the core curriculum, the basic courses all students must take to earn a degree.
With the approval of these 17 additional courses, there are now 27 courses transferable to USG institutions from TCSG institutions accredited by the Southern Association of Colleges and Schools Commission on Colleges. The increased number of courses enhances how TCSG students are able to pursue baccalaureate degree opportunities at USG institutions.
The new relationship between the two systems not only helps students, but also supports the state's work to increase college completion rates through the Complete College Georgia initiative (see story on page 20).

University System of Georgia Annual Report FY12

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Acknowledgements
FY12 Annual Report

Published by:



Office of Media & Publications

John Millsaps



Associate Vice Chancellor

Writer

Sonja Roberts



Marketing & Communications Coordinator



Editor and Design & Layout

Photography:

Courtesy of University System



of Georgia Institutions

The University System of Georgia is committed to equal opportunity for all persons in its educational programs, activities and employment practices. Inquiries concerning the Board of Regents' policies in these areas may be directed to:
Office of Legal Affairs Board of Regents of the University System of Georgia 270 Washington Street, SW Atlanta, GA 30334-9007 Phone: (404) 656-2221

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University System of Georgia Annual Report FY12

27

BOARD OF REGE

ERSITY SYSTEM

NTS OF THE UNIV
OF G EORGIA
"Creating a More Educated Georgia" www.usg.edu
Published by the University System of Georgia Office of Media and Publications 270 Washington Street, SW Atlanta, Georgia 30334 (404) 656-2250