Students to pay more in spring due to budget cuts
To keep you informed, I have provided a snapshot summary of this information.
State Revenue
October state revenue collections were down only 1/10th of a percent compared to October of last year. While that is encouraging, there is concern that the state’s November 2008 revenues will not come close to matching those of a year ago. As a result, all state agencies have been told to prepare immediately for further budget reductions.
8 % Budget Reduction
Specifically, we have been asked to prepare immediately to sustain an additional 2% budget reduction, which will bring our total reduction to 8% for the current fiscal year. We are currently reviewing our options for sustaining this reduction in ways that cause the least harm to our academic programs and services. There is still a very real possibility that the budget reduction could go as high as 10%. Therefore, we must keep our emergency approval processes in effect for hiring, purchasing and travel. This will require departments and divisions to make hiring, purchasing and travel decisions that are consistent with the budget reduction plans submitted earlier in the semester.
Temporary Student Fee
To help offset the 8% budget reduction, the University System of Georgia intends to implement a temporary, one-semester student fee to help support the basic operations of USG institutions. The anticipated amount for Georgia College students will be $100. We are currently exploring the feasibility of developing a payment plan for students who may be unable to pay this fee in full at the beginning of the spring semester.
Employee Health Insurance Premium Increase
To further compensate for this budget decrease, the University System of Georgia also intends to reduce the employer contribution rate for the PPO and HMO health insurance plans from 75% to 70%. This action will increase the employee cost for these plans. However, employees will have the option of moving to a lower cost, higher-deductible health insurance plan if they wish. As soon as it is available, our Human Resources department will provide information about the opportunity for employees to reconsider their health insurance coverage choices.
January Merit Raises
There is also some good news. The University System of Georgia has authorized its institutions to proceed with merit salary increases on January 1, 2008. This has been an important institutional priority at Georgia College, and faculty and staff who were awarded merit increases can now count on seeing those increases in their January paychecks. This should be welcome news to faculty and staff who now face an increase in their health insurance premiums or deductible costs.
A Closing Word
Please know that I appreciate the sacrifices that our faculty, staff and students are making during these very difficult economic times. Now more than ever, we need to nourish the bonds of our community and maintain our commitment to sustaining excellence in the programs and services that make our university so very special.
Thank you for what you do for Georgia College.
Dorothy Leland
President
Posted by Colonnade Archives
on Dec 5 2008. Filed under News.
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