Budget crunch could mean university layoffs, fee hikes

Layoffs, furloughs and hikes in mandatory student fees could be on the table for public colleges and universities next year, if the state’s fiscal crisis continues.

Universities could have to cut up to 10 percent of their overall budgets. That means students could be forced to pick up fees of up to $100 per semester at research institutions like the University of Georgia, the Board of Regents were told at a Wednesday meeting.

Chancellor Erroll Davis said it’s too early to tell whether those kinds of drastic measures will be necessary. But he told the board that the 2009 budget and a planned 2010 budget will reflect “some very stark economic realities.”

The system is making a 6 percent cut for 2009, which adds up to $136 million. The Regents approved a plan for 2010 that could slice 6 percent ($136 million), 8 percent ($182 million) or 10 percent ($228 million) from the budget.

University of Georgia President Michael Adams said cuts beyond 6 percent will have long-range impacts. Universities are still feeling the pinch of losing tens of millions of dollars from the 2003 and 2004 budgets.

This go round, “will mean significant loss of non-tenured faculty,” he said.

If the cuts go deep enough, they could trigger a “multi purpose mandatory fee” for students. Students at state colleges are currently on a “fixed for four” guaranteed tuition program that locks them in at their incoming rate. It gives school officials no wiggle room to increase tuition when economic times get tough. The proposed fee would fall outside of HOPE scholarship funding and be passed directly to students.

“It’s an option of last resort,” said Usha Ramachandran, the system’s interim vice chancellor for student affairs.

Colleges and universities have already submitted plans for 5 percent budget cuts, which include everything from shorter hours in computer labs to bigger classroom sizes. The system will cut about $20 million from the budget by capping some health care premiums.

Gov. Sonny Perdue will make final budget decisions.

Georgia State University President Carl Patton said additional cuts could mean furloughs at the Atlanta institution. He said with 70 to 80 percent of the university’s cost in personnel, cutting the budget becomes a tricky endeavor. But he said colleges are not immune to the economy.

“What happens in the nation, happens in Georgia,” Patton said.