Sonny Perdue’s final exam: Overhauling USG funding formula before he retires
During his four decades in public service, Sonny Perdue has earned plenty of political clout. With just eight months left before the former governor and University of Georgia quarterback officially hangs up his cleats, he likely intends to use it.
On Wednesday, Perdue announced he’ll retire in January from his role as University System of Georgia chancellor. His decision will put an end to a storied career that included positions in local, state and federal government. The clock is now ticking, not just for his professional life but the significant power that came with it.
Prior to making his announcement, the chancellor signaled where he might focus his attention in the coming months: the formula used to calculate how much annual state funding the USG receives. The formula was first created decades ago, roughly the same time Perdue began his political journey by joining the Houston County Planning and Zoning Board.
Higher education has gone through significant changes since then. Some, including Perdue, argue the USG funding formula should, too.
“Folks, can you name anything that’s remained the same since the 1980s?” Perdue asked the Board of Regents Wednesday during their monthly meeting at Columbus State University. He eventually held up his iPhone, reminding his audience that the formula predates the internet. “Imagine trying to run your business with principles from the middle 1980s.”
“Education, while it’s a great moral effort,” Perdue continued, “it is a business as well. And we’ve got to pay the bills as we go forward.”
Those bills became more daunting last month when the state Senate attempted to cut the USG budget by $123 million. A proposal from Sen. Blake Tillery, R-Vidalia, would have changed the formula — which primarily uses enrollment to determine funding — so that the system wouldn’t receive as much money for online enrollment as it does for in-person courses.
Perdue flexed his political muscle to claw some of the funding back. By working with House Speaker Jon Burns, R-Newington, and Gov. Brian Kemp, he was able to get the cut reduced to $34 million.
“If the funding formula needs updating, that work deserves a comprehensive, thoughtful review, not an isolated adjustment that treats one mode of instruction differently without addressing the full picture,” Perdue wrote in a letter to the Senate.
Convincing the Legislature to overhaul the formula in the 2027 session could be the next and final test of his political capital.
There already appears to be momentum on his side. The Senate passed a resolution to launch a study committee that will examine the formula this year. It notes that the advent of new education technology, such as online learning, has led to big changes in higher ed since the formula’s creation. “Projected declining enrollment,” according to the resolution, “could result in insufficient funding in the future.”
So far, expert predictions of an “enrollment cliff” spurred by declining birthrates haven’t come to fruition in Georgia. The USG actually saw record enrollment this year, and Sen. Nan Orrock, D-Atlanta, credits the growth to Perdue’s chancellorship. Orrock believes it’s the right time to take a close look at the current funding structure and that Perdue “is likely to envision playing a significant role in the process between now and the time he takes his retirement.”
She noted Perdue and Kemp have a long history together. When Perdue was still governor, he appointed Kemp as secretary of state. Kemp’s term as governor will end in January.
“They will both be wrapping up their current roles as governor and chancellor right at the same time, so that partnership could play a significant role in what progress is made toward this,” Orrock told The Atlanta Journal-Constitution.
The chancellor didn’t specify Wednesday exactly how he’d like to see the formula changed. But in his letter to senators, he said the current model “has become more challenging.” As originally designed, the formula anticipated the state covering 75% of instructional costs with tuition making up the rest. Today, the state covers closer to 57%, leaving more of the burden on students and parents. The Georgia Board of Regents voted Tuesday to increase tuition and other costs for the upcoming school year.
As chair of the House higher education committee, Rep. Chuck Martin, R-Alpharetta, said he wants a formula that incentivizes schools to offer classes that are needed, not the ones that are most profitable. Additionally, how much money the USG gets for its maintenance and operational budget is determined by building square footage, said Martin. He’d like to see a different measurement used, considering historic buildings are typically more expensive to maintain than modern infrastructure.
Perdue’s input will be valuable because he has his finger on the pulse of Georgia higher ed, frequently communicating with the regents and university presidents, Martin said. Along with his understanding of state government and operations, Martin said the chancellor recognizes “the need for efficiency overall because it’s not our money. It’s the money we get from the taxpayers to provide positive and cost-effective outcomes.”
The United Campus Workers of Georgia says the current model has resulted in the state underfunding universities and leaving many workers behind. Jill Penn, co-president of the higher education union, said the Legislature went 32 years without providing a cost-of-living adjustment for USG employees. “Annual cost of living adjustments need to be a requirement in the updated USG funding formula,” said Penn, an associate professor at Georgia Gwinnett College.
Perdue said Wednesday he strongly supports the study committee, which must issue a final report by December. The Legislature cannot change the formula until next session, by which point Perdue will be out of office. Nonetheless, if he can properly leverage the political power he’s gained over the past four decades, he could reverse what Penn called “the last 25 years of austerity” and leave an even deeper imprint on Georgia’s universities for the decades to come.
“Chancellor Perdue’s final actions as USG Chancellor could enhance his legacy as a historic leader and leave behind a Georgia poised to succeed in the 21st century,” said Penn.
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