UNG president “concerned” about state budget cuts

University of North Georgia president Bonita Jacobs calls pending state budget cuts “concerning.” UNG stands to lose an estimated $2.5 million in state funding in the budget that awaits the signature of Governor Brian Kemp. It’s part of a budget package that will see $66 million in college and university cuts statewide, the result of declining enrollment in 20 of the 26 schools in the University System of Georgia.

From UNG president Bonita Jacobs...

Dear UNG Faculty and Staff:

The Georgia General Assembly completed its 2023 legislative session yesterday, and the Fiscal Year 2024 budget the General Assembly passed will result in a $66 million cut to the USG’s formula funding, which includes a projected $2.54 million decrease in state funding to UNG. When combined with the 10% state appropriations cut of $8.67 million in FY 2021, which was not restored, UNG has experienced a state appropriations cut of more than $11 million in recent years. The state budget now goes to Governor Kemp for final approval or line-item vetoes, and the Board of Regents typically approves institutional allocations at its April meeting.

This new and unexpected budget cut is concerning, as the university is already in the process of absorbing about $13 million in tuition revenue losses and state funding formula reductions related to credit hour declines occurring between FY 2021 and FY 2025. The credit hour declines are attributed to a strong local labor market, the effects of the pandemic on student enrollment, and national decreases in the number of traditional college-age students. At UNG, those trends have been particularly evident in losses of students seeking associate degrees. At the same time, the university must cover increased operating costs related to the employer portion of the health insurance premiums and utility cost increases of more than $1 million.

In anticipation of the budget reductions related to credit hour declines and the funding formula, we have been taking measures to reduce expenditures and have planned about $8 million in cuts to our operations, travel and personnel budgets for FY 2024. As an example, in August, we notified three non-tenure track faculty that their contracts would not be renewed for the 2023-2024 academic year. Other personnel reductions to this point have been absorbed through vacant positions and strategic hiring evaluations.

The severity of the budget cut passed by the legislature this week will further impact teaching budgets, staffing and student services as the university seeks to reduce costs. To cover some of the cuts, the university may use its state-authorized carry-forward reserves, which are typically used to ensure continuity of services during fluctuations in enrollment, to cover unexpected operating cost increases, to invest in equipment and technology, and to fund emergency infrastructure repairs.

On another note, I am grateful to our legislators for their continued support of our faculty and staff through the appropriation of $2,000 cost of living increases for eligible employees for Fiscal Year 2024, which begins July 1. That increase builds upon the $5,000 salary increases provided in the current year’s budget.

In addition, the legislature approved capital funding for two UNG facility projects - $2.3 million to fund furniture and equipment for the completion of our Cumming Campus academic building addition and $7 million in construction funds for our new Military Science Center at the Dahlonega Campus. I am grateful to all our legislators for their support of those important projects, and especially to Senators Steve Gooch and Greg Dolezal and Rep. Will Wade for their leadership and advocacy. It is important to remember that funds for capital facility projects come from a separate portion of the state budget and are often supplemented by significant private contributions, as in the case of our Military Leadership Center and the recently completed Cottrell Center for Business, Technology & Innovation.

I appreciate your support as we face these challenges together, and I will keep you informed as the budget progresses and we have a clearer picture of the impacts.

Sincerely,

Bonita

Bonita C. Jacobs, Ph.D.

President

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