Wednesday, May 9, 2012

Budget cut could mean student fee hikes, revoked tuition rates

By on August 21, 2008

An expected rise in Georgia’s budget deficit forced the University to plan for 6 percent, 8 percent and 10 percent budget cuts to take place within the next two years, possibly resulting in increased tuition and student fees.

The Board of Regents approved the University’s budget cut plans Wednesday, as well as all academic proposals and building name changes.

For students, the budget cuts mean larger classes, fewer busses and a possible $75 fee per semester. For employees, cuts mean layoffs, lack of resources and encroachments in health benefit programs.

“It’s a matter of prioritizing,” Tom Jackson, vice president for public affairs, said of the effort to reduce the University’s expenses equitably. “We can’t cut everything by the same amount, and no one expense can be simply eliminated.”

Although the board has considered revoking guaranteed tuition rates, the budget plan will go to Gov. Sonny Perdue to make final recommendations to state lawmakers.

John Millsaps, spokesperson for the Regents, said the “student and academic experience” is the board’s number one priority.

“You want to protect student instruction as much as you can,” he said.

The University has begun making adjustments for the 6 percent cut – about $24 million – by placing a cap on one of its insurance programs and cutting back on energy costs, Millsaps said.

Jackson said his office has been feeling the repercussions as well. He said they have been forced to cut back on publications that are vital to the University’s public relations.

“If you go to 8 percent,” Millsaps said, “you would go to what’s called ‘deferred maintenance’ in operations and buildings … If you have a car, you should change the oil every 3000 miles but you change it once a year to save money.”

Also at the 8 percent level, Millsaps said, “We will reduce the employer share of health benefit programs from 75 percent to 70 percent, asking employees to pick up the other 5 percent. That’s $23 to $80 or $90 dollars per employee per month.”

For the 10 percent budget cuts, the board approved a concept that would look at various options.

“One, go back to the institutions and get 2 percent cuts in operations and personnel,” Millsaps said. “Two, institute a temporary mandatory fee for students from $75 per student per semester.”

On how imminent a 10 percent budget cut is, Millsaps said, “No one wants to make that kind of projection.”

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