North Georgia prepares for budget cuts, furloughs
Contact: Kate Maine, University Relations
706-864-1950, kmaine@ngcsu.edu
Dahlonega, Ga. (July 29, 2009) - As departments across the North Georgia College & State University campus prepare for the fall semester, they are also bracing for a new round of state budget cuts and the likelihood of furloughs.
In a message to all employees on July 28, President David Potter told faculty and staff that all institutions in the University System of Georgia (USG) had been asked to develop new budget reduction plans reflecting cuts of 4, 6 and 8 percent. The plans translate into cuts ranging from $1,026,258 to $2,052,516.
In Fiscal Year 2009, North Georgia's state budget was cut by 11 percent. The cuts included broad reductions in travel budgets and operating supplies and the ability to fill needed faculty and staff positions. At the beginning of FY2010, North Georgia, and all USG institutions, received a cut of 3 percent in state funds.
"We all recognize the impact these reductions have had on scholarly work, operations and employee morale," Potter said. "We are grateful for your collaborative efforts and your support of each other to help us maintain good financial management and a positive sense of community in this challenging time."
The new budget reduction plans include campus-wide cuts of 20 percent to supply budgets and 10 percent cuts to travel budgets. Additionally, some individual departments identified deeper reductions in those areas and decided to delay hiring for some vacant positions. Federal stimulus funds and this year's increase in our state educational and general budget allocation helped to offset the severity of these reductions; however, these are temporary measures, and our long-term plans must take into account that the federal stimulus funds will cease in 2011.
"The likelihood of further budget reductions will require a comprehensive examination and prioritization of program elements," Potter said. "The university's leadership is operating out of what we hope is a worst-case scenario to examine structural changes and forestall deeper cuts in critical services and programs."
Furloughs, mandated recently for all state employees by Gov. Sonny Perdue, are included as part of the budget reduction plans. The governor's initial announcement called for three furlough days to be taken by the end of the calendar year. The university system and individual institutions are working to identify issues, questions and needed steps related to furlough implementation, which outline the possibility of six furlough days.
President Potter noted that while the latest budget news is distressing, the university will be able to continue planned capital projects that are funded through separate funding sources that are not available for personnel or operational budgets.
"Our new residence halls, dining hall and parking deck represent about $80 million in capital improvement projects that will be funded through privately financed tax-exempt municipal bonds," he said. "Additionally, we will soon begin about $16 million in renovations to academic and office spaces and campus wide technology improvements that are made possible through state bonded funds. Collectively, these projects should help invigorate the local economy and provide vital enhancements to our campus."
