Georgia Perimeter College President Anthony Tricoli has stepped down following the disclosure that the two-year college has a $16 million budget shortfall, Chancellor Hank Huckaby announced Monday.
Students will not pay higher tuition and fees to cover the shortfall, but the financial woes will be felt around campus into the next school year, Huckaby wrote in a letter to the college community obtained by The Atlanta Journal-Constitution.
"We do not know at this time precisely the impact in every budget area, but it will be significant and will likely impact personnel," Huckaby wrote. "These actions are necessary to address a shortfall of this magnitude."
Georgia Perimeter is the state's third largest public college, with nearly 27,000 students taking classes at sites in Alpharetta, Clarkston, Covington, Decatur and Dunwoody.
University System of Georgia officials refused to provide more information about the school's financial problems. State Board of Regents Chairman Ben Tarbutton said Huckaby's letter "speaks for itself." The letter provided no specifics regarding what caused the shortfall.
Tricoli, who has been president of the college since 2006, declined to comment when reached on his cell phone.
Tricoli stepped down because "of the need for a fresh approach," Huckaby wrote. He will move to the system central office to help with online learning and other programs.
Alan Jackson, vice president of academic affairs, will be acting president until Huckaby appoints an interim president. That appointment is expected in a few days.
The shortfall is for the 2012 fiscal year that ends June 30. Georgia Perimeter will receive about $50.2 million in state allocations for the year, according to system figures. That does not include money the college receives from tuition, fees, grants and other sources.
Though it's unclear when the shortfall was discovered, the college has already suspended contracts, cut travel, delayed hiring and implemented other steps to start closing the gap, Huckaby said in his letter. He wrote the system will reallocate internal funds to guarantee the college ends the fiscal year with a balanced budget.
Huckaby warned the shortfall will continue into the 2013 fiscal year, which starts July 1. College and system staff are preparing a plan to address that situation, he wrote.
Student John Posso wondered if the college will eliminate clubs or cut hours at a tutoring center. The 19-year-old is working toward a degree in computer science.
"I'm really worried," Posso said. "We're just a two-year school so we don't have a lot of stuff that they could just cut. This is a huge hit for our school."
The news surprised some students, partly because Tricoli just presided over Friday's commencement. Some shared the news over Twitter, with a few students wondering whether if they should transfer.
Meanwhile, faculty and staff have spent the past couple of weeks wondering if Tricoli might leave.
Tricoli has admirers who compliment his aspirations for the college and critics who have questioned his decision to open new centers at the college. Much of the recent talk stemmed from a memo the college’s Office of Financial and Administrative Affairs sent to employees last month. The letter, which the AJC obtained, said the college "must take action to reduce costs and bring expenditures in line with available funds."
The note, signed by Executive Vice President Ron Carruth, outlined steps to reduce and restrict spending for travel, hiring, purchases and the use of contracts or consultants. That memo made no mention of a $16 million shortfall.
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