Chancellor Thomas C. Meredith Delivers Remarks on Proposed Fiscal Year 2005 Budget Request
September 9, 2003
Thank you, Mr. Chairman. In some ways, these are the best of times and the worst of times! Students are flocking to our institutions in larger numbers than ever before. When the fall numbers are in, we expect to see close to 250,000 students. This is a fantastic development for our state, and for us as a University System in our effort to Create a More Educated Georgia. However, this is happening in very challenging times - while we have more students, we have less money.
The state continues to have a weak economy. Revenues were down 5.4% in July, however, with an increase of 4.1% in August, we are optimistic that things will change for the better. The state's Fiscal Year 2004 budget was based on a 6.4% increase in revenues, and it may now require as much as a 7.5% increase to offset the shortfall from FY 2003. The state recently announced probable cuts of 2.5% for FY 2004 and possible cuts of 5% for FY 2005 - all this at a time when our student numbers are increasing. The gap between the increase in the number of students and the decrease in funding is getting wider. That is the reality with which we have to deal as we go forward.
Last month, I shared with you a brief history of the University System. This Board was born in times of great economic distress during the depression. Yet look at where we are today! We will not be defeated by these economic times. We will be stronger, even as we reinvent ourselves and the way we do business.
So, we have built the best budget possible under the circumstances. As we have said since shortly after I arrived, we must do whatever is necessary to keep from destroying our hard earned and much envied quality. Although it will mean a reduction of needed services and in some cases access, we have worked hard to preserve our classroom and laboratory activities.
The budget we put forward today follows the guidelines from OPB. The figures are realistic and not inflated. When funded by our funding partners, this budget will enable us to make targeted advances.
As with most of our recommendations, we have tried to be as collaborative as possible. Our institutions have been heavily involved. Our staff, under the leadership of Vice Chancellor Bill Bowes, has done an extraordinary job as usual. Bill, before you begin your presentation, will you introduce your staff and have them stand?