Challenges rise as Georgia Perimeter faculty, staff return to work

Troubles at Georgia Perimeter College continue, as the school faces additional financial pressures and possible scrutiny from an accreditation agency, the interim president said Monday.

Although the college already cut $25 million to cover a budget shortfall discovered last spring, the school learned this month it must trim another $1.6 million to meet an unexpected round of state budget cuts. Interim President Rob Watts told faculty and staff it's too soon to say what will be cut, adding that administrators will go through the budget line by line.

Also, the metro Atlanta college could lose 2,500 students — just under 10 percent of its nearly 27,000 students — because new system-wide admissions rules reject applicants who need too much remedial help in English or math. Watts remained hopeful that numbers won't drop much more than that as the college continues registering students. But with tuition and fees making up nearly half a college's revenue, the decline could further dent the budget.

Watts warned the college could face sanctions, warnings or additional monitoring because of its financial problems when an accreditation agency conducts its regular renewal. The Southern Association of Colleges and Schools Commission on Colleges is scheduled to announce a decision in June.

Watts spoke to faculty and staff during the college's private convocation, which The Atlanta Journal-Constitution was invited to attend. The newspaper was the first to report the college's history of overspending and has led coverage of measures to adjust.

For many faculty and staff it was their first time back on campus since the college's financial problems were disclosed in early May.

Since then the president and high-ranking financial officers were removed. Watts was appointed interim president and implemented numerous cuts. He laid off 282 people, nearly 9 percent of the staff. No campuses were closed and no tenure or tenure track faculty lost their jobs.

"We have been through what seems like an endless summer," Watts said. "The future of the college and its campuses is not in doubt."

Still unknown is how Georgia Perimeter got into such financial straits. University System of Georgia auditors are scheduled to release their report later this month. State auditors and the Attorney General's Office are also reviewing the situation.

State records show the college has been overspending for years. Ron Stark, the new vice president for fiscal affairs, said new budget controls have been put in place and guaranteed "another shortfall will not happen."

The audience applauded Stark's promise, but he warned difficult times remain.

"This is going to be a tough year," Stark said, adding finances should improve over the next two years.

Watts acknowledged the layoffs have caused some to describe the college as a "colder and emptier place."

Watts said it is his "profound hope to avoid furloughs and any further personnel actions" as the college absorbs the latest state budget cuts. He joking offered to sell his signature bow tie collection on eBay to raise money.

Both statements received applause and cheers.

The mood Monday differed from when Watts spoke before a smaller group in mid-May. During that event people sat with their arms crossed. Few smiled and some shook their heads in disgust as Watts explained the dire situation.

This time people smiled and many said they look forward to the fall semester that starts Aug. 20.