Another round of state budget cuts compounded with declining enrollment will make it tougher for Georgia colleges to chop spending without harming students.
Gov. Nathan Deal recently ordered $108 million in proposed cuts from the University System of Georgia. This translates to a $54 million reduction for this fiscal year and an additional $54 million for next year.
The State Board of Regents received more bleak news Tuesday when told the system is experiencing a rare drop in enrollment. That means many colleges, particularly two-year schools, will immediately have less money because they'll receive less tuition revenue, said John Brown, vice chancellor for fiscal affairs.
As students have learned, reductions in state funding lead to tuition and fees hikes.
State funding used to cover about three-quarters the cost of teaching students while now it pays about half. Meanwhile tuition and fees at some colleges have increased by 75 percent since 2008.
Brown stressed the seriousness of the situation to the regents.
"I can't emphasize enough ... please listen to what I have to say," said Brown, former director of the House Budget Office. "I can be Chicken Little-like in my budget days gone by and sky is falling gloom and doom and all of that, but what I'm going to tell you is what I believe to be the case and how we need to respond going forward."
Deal may not include all the 3 percent cut recommendations in his budget proposal, but Brown wasn't optimistic.
"Institutions should fully expect to lose this 3 percent," he said and warned colleges to prepare for another 1 or 2 percent reduction. "This money is not going to be restored, in my opinion."
The system is working with colleges on what they will cut and decisions are expected in coming weeks. Colleges were told to minimize impact on students and avoid one-time reductions such as furloughs.
The regents will receive campus by campus cuts at the October meeting, Brown said.
Further exacerbating the situation is an enrollment slow down. Enrollment has only dropped twice since 1978, but preliminary figures show about two-thirds of the system's 35 colleges will see enrollment remain flat or decrease slightly, Brown said.
Many colleges have depended on the additional tuition revenue from higher enrollments to soften deep cuts in state funding during the recession.
Officials attributed an enrollment drop to changes in the state HOPE scholarship and federal Pell Grant program. Also new system-wide admissions rules reject students who need too much remedial help in English or math.
Chancellor Hank Huckaby said the current budget situation means colleges must spend in a different way and make some tough decisions.
The system previously received nearly $72.5 million in new state money this year. Colleges planned to hire additional faculty and make other changes they said would improve student success.
The required 3 percent cut eliminates much of that money, although Brown said colleges focus should direct cuts to areas outside teaching and academics.
This year's cut would equal about $9 million at University of Georgia. President Michael Adams expected only some of cuts would be handled at the administrative level.
"It will not be easy," Adams said.
University System of Georgia Budget Request
The State Board of Regents Tuesday approved a $1.93 billion budget request for the 2014 fiscal year, which starts July 1. The board also approved a separate $279.6 million request for facilities.
Here is some of the new money requested:
$65.6 million — For enrollment gains over past couple of years
$15.8 million — For increased health care costs
$2 million — To support graduate medical education and add residency slots
Source: University System of Georgia.
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