Tuesday, May 8, 2012

Adams expects tuition to increase, but no layoffs

By on September 5, 2008

University President Michael Adams said in a budget-related forum Friday that he expects tuition rates to increase, but he does not foresee layoffs or salary cuts.

He estimated it should take “six to 12 months to work through this situation.”

He spoke to about 200 people who were gathered in the Georgia center to hear his explanation of the recent budget cuts. About 95 percent of the attendees were nonstudents.

Adams began the discussion by defending the state’s role in the University’s financial situation.

“I don’t care what your politics are, but the governor and board of regents support us,” he said. “It is unfair to say they don’t.”

He referenced a slideshow that delineated where the state was making other cuts, including $164 million to the funds for K -12 education.

“This number speaks to the seriousness of what we’re dealing with,” he said.

He listed some of the places the University had decided to make cuts, which included $126,000 to the Student Learning Center by eliminating 24/5 operation, $100,000 to the Student Learning Centers computer and IT support, $1.06 million to the physical plant by cancelling certain projects, $50,000 to the police department by reducing overtime by 20 percent, and $560,000 to the library by cancelling 21 percent of subscriptions.

Adams also congratulated University students on eliminating water and electricity costs, noting that consumption has been reduced by 20 percent over the last 10 years.

However, the budget falls $13.7 million short on meeting energy costs for 2009, considering energy rates have more than doubled since 2003.

The University is also short $6.1 million in health care costs, a deficit that is expected to rise to $13.2 million by 2010.

“This is the Regent’s plan, not ours,” said Tim Burgess, senior vice president for finance and administration. “The benefits structure for this year will be roughly the same. And your premiums will go up with the rest of the country’s.”

When asked whether tuition rates would rise, Adams said, “I certainly hope so. For the quality we get here, I think we are underpriced.”

He explained that it is in the students’ best interests to cover the high costs of retaining quality faculty by applying fees and raising tuition.

“I can’t stand here today and tell you there won’t be pain getting through all this,” Adams said. “But we’ve been through worse.”

He referred to 2003, when the University was last hit with a budget deficit that necessitated layoffs. He seemed optimistic, however, that layoffs were not imminent.

Arnett Mace, senior vice president for academic affairs and provost, said the administration is going to “keep the faculty we have a large investment in already rather than offering new positions.”

That means there will be little effect on current faculty salaries, with limited recruitment over the next year. Retaining quality faculty was also one of the main issues discussed at the Board of Trustees meeting Friday morning, because without the money to make competitive offers, the University has a hard time holding on to faculty that are being recruited by other affluent schools.

Tom Jackson, vice president of public affairs, asked the board for help in funding professorships, so during this financial bind, the University does not risk losing its highly-sought-after faculty members.

Back to the budget forum, some faculty members voiced concern over whether their travel expenses would continue to be compromised, and Adams said he is allocating $200,000 of unrestricted grant money to faculty travel funds, citing its importance to student education.

Two concerned students asked whether the University was doing enough to cut back on energy costs. Adams said the administration has spent over $1 million on energy control and that sustainability is an important factor of every new building on campus.

He petitioned students for their suggestions on energy-saving tips that could have a large-scale effect on costs, asking them to forward their thoughts on to administrators. Adams concluded the forum by committing himself to open communication throughout the budget crisis.

“We have no secrets to keep on these matters,” he said. “When we try to keep secrets, you guys somehow find out about them anyway,” he added, jokingly.

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