Now that Georgia Perimeter College has slashed $25 million from its budget to cover a financial shortfall, attention has turned to the fall semester that starts next month.
The big unknown is whether students will return.
Applications are down about 5 percent, Interim President Rob Watts said during an exclusive interview this week with The Atlanta Journal-Constitution. Also a University System of Georgia policy change means at least 1,500 students who used to be allowed to attend the college will no longer meet admission requirements, he said.
Tuition makes up a large portion of a college's revenue. Should the school's 27,000-student enrollment from last year drop drastically, Watts said Georgia Perimeter will have to make additional cuts with furloughs — a "back-up plan if we've got no other way."
Watts already laid off nearly 9 percent of the college's staff last month as part of a massive cost-saving plan. No locations were closed and no tenure or tenure-track faculty were laid off.
"Nothing of this has touched what's going on in the classroom," Watts said. "Students have had good academic experiences here and they'll continue to have good academic experiences here."
Still, some students said they may transfer to Atlanta Metropolitan, Georgia Gwinnett or other colleges because of concerns about getting help when it comes to enrolling and financial aid.
"The class sizes are great and the professors are always willing to help you but I'm still thinking of transferring," said Lamar Jagne. "I have a lot of concerns about who will help with my financial aid and who will be around to answer any of my other questions."
Other students questioned if they would have access to tutors or if classes would get too big. Watts said classes on average will be two to three students larger, but would remain comparatively smaller than those at large universities.
Of the 282 staff layoffs, 92 were in student affairs. This division includes admissions, financial aid, student life and advising and counseling. These services are critical for students who work part-time or full-time and many are older and haven't been in school for a while.
Watts asked retirees to help with tutoring and called on faculty and staff to answer phones and assist students with the registration process. Students can do much of the work online.
"We made the needed cuts and we've turned the corner," Watts said. "I'm wearing suspenders today because my belt is cinched so much that I can't even get it around my waist anymore."
Briana Walker transferred to Georgia Perimeter almost a year ago, leaving another college going through budget cuts. She doesn't want to switch again.
"Of course a lot of us are worried about having all our classes but Georgia Perimeter is so well known and has so many transfer agreements with other colleges that it just makes more sense for me to stay here," Walker said. "I just have to be flexible and patient."
The cuts and layoffs occurred quickly considering the State Board of Regents appointed Watts May 9.
Chancellor Hank Huckaby and the regents have said little about how the college's financial problems became so dire, why it wasn't discovered sooner and what will be done to prevent it from happening again.
They said they're waiting until the system completes its audit on the college. The report should be done next month, officials said.
Georgia Perimeter has been overspending for the past four years, according to previous audits and other analyses The Atlanta Journal-Constitution reviewed. The college depended on its reserves in the past, but those funds are too depleted to help this time.
State auditors have started analyzing the college's books and the report is expected mid-October, Watts said.
The Attorney General's Office is also reviewing the situation because Anthony Tricoli, the former president, alleged "fraudulent behavior by key financial personnel."
Tricoli left the school May 7 and was later placed on administrative leave until his annual contract expired June 30. The regents didn't renew his contract. He has retained attorneys who requested the system "refrain from commenting further on the firing," according to a May 10 email Huckaby sent the regents.
The college end the 2012 fiscal year with a shortfall of nearly $16 million. The deficit worsened to $25 million when the new fiscal year started July 1 because the college closed the deficit and repaid what it borrowed from other schools to balance its books. The money came from Georgia State University and University of West Georgia and has been repaid, Watts said.
As part of the cost-saving efforts, Watts and other administrators plan to teach this academic year.
Staff members are reviewing Watts' transcripts to determine what he can teach. He has taught English and comparative religion. He also applied to take Italian classes to see what the student experience is like.
Meanwhile, the college is moving ahead with the two bachelor degrees the regents approved last year. And nursing faculty are working on a proposal for a nursing bachelor degree. Watts stressed it wouldn't be implemented this year.
"Even under financial constraints you still have to think about the future," Watts said.
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