Legislative budget cut impacts UNG
Article By: Staff
The Fiscal Year 2024 budget the Georgia General Assembly passed March 29 will result in a $66 million cut to the University System of Georgia's (USG) formula funding, which includes a projected $2.54 million decrease in state funding to the University of North Georgia (UNG).
"This is an incredibly disappointing outcome, given the work done over the years by our state leaders to elevate higher education and send Georgia on a path to ascension," USG Chancellor Sonny Perdue said in response to the legislature's action. "It will have a significant impact on institutions and the services that students and families depend on to advance their prosperity and help Georgia succeed."
When combined with the 10% state appropriations cut of $8.67 million in Fiscal Year 2021, which was not restored, UNG has experienced a state appropriations cut of more than $11 million in recent years. The state budget now goes to Gov. Brian Kemp for final approval or line-item vetoes, and the USG Board of Regents typically approves institutional allocations at its April meeting.
"This new and unexpected budget cut is concerning, as the university is already in the process of absorbing about $13 million in tuition revenue losses and state funding formula reductions related to credit hour declines occurring between Fiscal Year 2021 and Fiscal Year 2025," UNG President Bonita Jacobs said.
This is an incredibly disappointing outcome, given the work done over the years by our state leaders to elevate higher education and send Georgia on a path to ascension. It will have a significant impact on institutions and the services that students and families depend on to advance their prosperity and help Georgia succeed.
Dr. Sonny Perdue
University System of Georgia chancellor
The credit hour declines are attributed to a strong local labor market, the effects of the pandemic on student enrollment, and national decreases in the number of traditional college-age students. At UNG, those trends have been particularly evident in fewer students seeking associate degrees. At the same time, the university must cover increased operating costs related to the employer portion of the health insurance premiums and utility cost increases of more than $1 million.
In anticipation of the budget reductions related to credit hour declines and the funding formula, UNG has taken measures to reduce expenditures and has planned about $8 million in cuts to its operations, travel and personnel budgets for Fiscal Year 2024, which begins July 1, 2023.
As an example, in August, UNG notified three non-tenure-track faculty that their contracts would not be renewed for the 2023-24 academic year. Other personnel reductions to this point have been absorbed through vacant positions and strategic hiring evaluations.
The severity of the budget cut passed by the legislature this week will further impact teaching budgets, staffing and student services as the university seeks to reduce costs. To cover some of the cuts, the university may use its state-authorized carry-forward reserves, which are typically used to ensure continuity of services during fluctuations in enrollment, to cover unexpected operating cost increases, to invest in equipment and technology, and to fund emergency infrastructure repairs.
"I am grateful to our legislators for their continued support of our faculty and staff through the appropriation of $2,000 cost of living increases for eligible employees for Fiscal Year 2024, which begins July 1," Jacobs said. "That increase builds upon the $5,000 salary increases provided in the current year’s budget."
In addition, the legislature approved capital funding for two UNG facility projects: $2.3 million to fund furniture and equipment for the completion of the Cumming Campus academic building addition and $7 million in construction funds for the new Military Science Center at the Dahlonega Campus.
"I am grateful to all our legislators for their support of those important projects, and especially to Senators Steve Gooch and Greg Dolezal and Rep. Will Wade for their leadership and advocacy," Jacobs said. "It is important to remember that funds for capital facility projects come from a separate portion of the state budget and are often supplemented by significant private contributions, as in the case of our Military Leadership Center and the recently completed Cottrell Center for Business, Technology & Innovation."
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