Meeting With President

Budget Update from the President:

• Some budget cuts were offset by stimulus money (which must fund permanent and ongoing operations). However, stimulus money is temporary money, so funds from tuition revenue and formula funding were set-aside to replace stimulus funding when it rolls out of the budget at the end of this fiscal year.  Expenditure of funds set-aside to replace stimulus funds were thus limited to “one-time” (temporary) “move-the-needle” funding priorities.
  • Most funds went to fill temporary faculty positions in areas of “demonstrated backlogs”
  • Some funds went to provide matching funds for a grant to establish a Georgia Public Broadcasting station at GCSU
    • Will begin broadcasting in March
• Some funds provided Emergency Management System with sirens
• Some funds provided upgrades and systematization for use of donor database at the Foundation
• Some funds will be used for a stoplight and turn lane at West Campus
• Anticipate new money for FY 12 – entering into the process for requests of new money, should follow the same procedure as before, some one time funds may also be available
  • Process should have begun already at departmental level for initial prioritization
  • November 17 & 18 from 11AM – 1PM will be open forums for the VP’s to present requests and for the faculty and staff to ask questions and review the requests
  • Dr. Leland will meet with RPIPC at December 3 meeting for feedback regarding her prioritization before sending final requests to Atlanta by December 15
  • RPIPC needs to be actively participating in budget process and encourage others from the departments and divisions to be engaged
  • Federal stimulus money paid salaries at the beginning of the fiscal year; after that, state funds are being used to pay salaries
    • GCSU is not facing a stimulus cliff, though other schools and the state as a whole are, which may impact GCSU
    • 6% budget cuts mandated by the state for FY11 stem from assumption that feds would extend stimulus funding
    • Dr. Leland has requested departments to generate plans for generating 2% more revenue or identify the way 2% can be cut from the budget
      • Reserve has been depleted to dangerous levels and needs rebuilding
        • Georgia expected to take 5 years to recover
        • Reserves are especially important for health insurance premiums,  unexpected increases in the costs of gasoline/fuel, and unexpected (unbudgeted) emergency repairs/replacements
        • Focus of cuts on least harm to instruction and saving the most jobs
• Dr. Leland suggested that the “wits end/resources end” argument is not effective, the better focus is on how limited resources take students off track for completing a degree in a timely fashion.
• Rolling off Fixed-For-Four tuition will help the institution.
  • Will provide additional tuition funding, which will help offset lose of temporary emergency mandatory student fee revenue
  • HOPE will not be addressed by legislature until after elections, but is on the agenda, with at least two possible scenarios among the scenarios to be debated:
    • Decouple from tuition (flat rate or percentage rate of tuition cost)
    • Sliding scale based on ability to cover educational expenses
    • Anticipate completing faculty salary study
    • Hope temporary faculty positions can become permanent
    • Hope to replace some staff positions which were lost during the budget cuts
    • Hope to revisit old challenges (i.e. academic advising)
    • Plan to replenish reserves, which were used to offset budget cuts and left in a dangerously low position.

Additional Update

• Voluntary Retirement option suggested by Strategic Management Task Force
  • If approved, the program will be effective this year
  • Applications will be accepted from 11/15/10 – 2/15/11 with an effective retirement date of 5/31/11
  • Retirees will receive all benefits plus a lump sum payment at a graduated level based on years of service and age
  • One time funds will pay for this program
  • The program is PURELY VOLUNTARY
  • Program is likely a one-time only event and will likely not occur in future years
  • Seeking support of BOR Legal Services to ensure accuracy and legality