Chancellor Thomas C. Meredith
FY04 Amended Budget Presentation
Date: January 7, 2004, 1:30 PM
Place: Room 341 State Capitol
- Remarks -
Thank you. I understand your schedule and I will be respectful of your time today.
First, let me thank you for your continued collaboration and support as we work together to "Create a More Educated Georgia." Georgia has undergone serious budget issues in line with many other states. But the level of cooperation and partnership here in Georgia stands as a model for how everyone should be conducting the people's business.
As a result, today Georgia stands in a much better position than others to move forward. We have not fallen into the trap of other states where revenue shortfall has resulted in an adversarial atmosphere and a lack of civility instead of partnering to find solutions. That's a testament to good leadership.
In the FY04 Amended recommendations, there are three items I will cover today. First, the additional 2.5 percent cut to the FY04 budget; Second, the recommendation from the Governor regarding the Optional Retirement Program and third, the Governor's recommendation for the Public Libraries. Then I'll be available to answer your questions.
Please turn to page 43, items 1 to 4 of your tracking document. These reflect the Governor's request to all state agencies for an additional 2.5 percent cut in the current fiscal year budget. These cuts to our 34 institutions, special funding initiatives, public service institutes, research consortium, and line item units total $36.6 million for the University System.
That is on top of the six prior cuts we have sustained since November 2001 - bringing the total of the cuts to almost $253 million, when you add in our B unit reductions of $4.68 million. Let me put these cuts in a different perspective. That $253 million total in cuts is the equivalent of all state funds of 21 of our institutions, that is more than half of our institutions.
Mr. Chair, I want to publicly acknowledge the masterful job our 34 presidents have done in managing this painful and difficult process. But just because we've managed to date, doesn't mean these cuts haven't had a deep and negative impact on our institutions and our students. Just because our campuses have continued to stress a quality academic environment for the record number of students in the System doesn't mean these cuts haven't hurt.
There has been an impact.
There have been consequences.
And these cuts have hurt deeply.
This additional 2.5 percent or $41 million cut will have an impact and consequences. I understand the situation in which you and the Governor are operating. We will continue to do our part. But I would remiss in my responsibilities if I did not point out the consequences of these continued budget cuts on the University System and our students.
Regarding item 3, Mr. Mike Cassidy from the Georgia Research Alliance is here to answer any questions. I must say that the research consortium programs have provided enormous long term economic benefit to the University System of Georgia.
Items 5 and 6 are two programs: the Center for Civic Renewal and Engagement, and Institute of Community Business Development, both of which are based at Georgia State University. These are additional reductions for the fiscal year.
Item 7 transfers funds from the Board of Regents budget to the Department of Public Safety for the maintenance of the Tift College property.
Now let me turn to the two recommendations for additions from the Governor.
Item 1 under the Additions is $1.5 million for the Optional Retirement Plan rate increase. You may remember the General Assembly created the Optional Retirement Plan to give our faculty members a greater choice of retirement systems. The actuary for the optional retirement plan has raised the employer's contribution rate to keep the plan actuarially sound. This rate increase means a total increase in the employer's contribution of $1.56 million.
Item 2 under the Additions is a transfer of $906,381 from the Professional Standards Commission to the Board of Regents budget for the Leadership Institute. The Board of Regents has taken on this responsibility for the state and this transfer simply aligns the budget with the responsibility. This is not new money. It is a continuing program that is being transferred to our budget.
Items 1 and 2 under the tobacco funds will be handled by Mr. Bill Todd, who you will hear from later this afternoon. We all wish Bill well in his new role as head of the Cancer Coalition.
Please turn to page 44, items 1A to O on your tracking sheet. These are the budget cuts of $4.68 million for the B units.
Item p is the cut for the Georgia Military College, and you have already heard from Gen. Peter Boylan regarding this item on Monday.
Item 2 transfers funds for the maintenance of the Tift College property in the amount of $34,700.
On item 3, either Executive Director Jim Lyle or Ms. Nancy Hall will be your contact to answer any questions regarding their 2.5 percent reduction for GPTV. We make use of their services regularly and they do extraordinary work.
The final addition I will mention is Item 1 under Additions on page 44. This is the Governor's recommendation of $1.25 million for Georgia Library PINES, an initiative of the Georgia Public Library Service. PINES stands for Public Information Network for Electronic Services.
This recommendation will provide the critical operational continuation funding for this automation system and lending network used in the operation of 44 of Georgia's 58 public library systems that serve 50 percent of Georgia's citizens. Through the power of technology, PINES creates a statewide "borderless" library that provides equal access to books and information to any citizen, regardless of geographic location. Any Georgia resident is eligible for a PINES library card. Currently, more than 1 million Georgians have a PINES card.
Georgians with a PINES library card have access to materials beyond what is available on their local shelves. PINES cardholders have access to a shared collection of 7.7 million books and materials located at 249 libraries in 123 counties.
For example, a resident of Crawfordville needs information on resumes and employment. His local library has 25 relevant items. Because he has a PINES card, he can search the online PINES catalog for books related to resumes and employment and find 720 relevant items. The book he selects may physically be located in a library in Quitman. He can have that book delivered to his home library in Crawfordville with no charge to him.
PINES is a national model for resource sharing and interlibrary cooperation, and results in significant cost savings to Georgia taxpayers while improving library services. The Governor's $1.25 million recommendation will help keep PINES operating and serving Georgians.
Item 2 is simply a transfer of funds between personal services and operating expenses. Dr. Lamar Veatch is here from the Public Libraries if you have any questions.
Mr. Chair, that concludes the Governor's recommendations for the FY04 Amended and my comments. Again, I thank you and the members of the General Assembly for your partnership and your support. It is deeply appreciated. And I'm ready to answer any questions you may have.
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