Money matters

The Board of Regents announced six mandatory furlough days, or unpaid days off, for University System of Georgia employees who make more than $23,660 annually to cope with the $115 million cut. Of this $115 million, furloughs along with health care plan changes yield $43.5 million and a possible $150 student fee may be imposed in the spring to boot.

The student fee will only be implemented if the budget cuts continue another 2 percent from the current 6 percent.

An averaged tenured professor will be losing about 3 percent of their income, or about $2,000 this year. These furloughs alone will save GCSU $990,000, according to the reduction plan.

Complete details are here

The remainder of the funds will come from layoffs, new employee furloughs, internal reorganizations, energy conservation and the elimination of low-enrollment programs, according to the USG.

“We have to remember right now how important it is to nurture our community,” Leland said at in a speech held Thursday to faculty and staff. “We need to be bold. The same old things aren’t going to work.”

Employees’ annual contracts state that up to 10 furlough days may be utilized. Six of these days must be taken by June 31, 2010, and three of those before Jan. 1, 2010. The actual furlough dates are still undecided. Leland said suggested dates include days surrounding Thanksgiving, and winter and spring breaks.

Furloughs are seen as a temporary fix for what could be a long-term problem. President Leland says all budget cuts are permanent.

The USG has made it clear that employees cannot work on a declared furlough day. Professors are not allowed to hold class on furlough days nor are classes to be canceled due to a furlough, according to the USG. They may, however, distribute personal learning assignments in lieu of instruction.

Annual and sick leave cannot be substituted for furlough days.

Due to employment laws, upper administration will not be allowed to take more furlough days to compensate for lower salaried employees.

Budget Breakdown

There are four categories in which the USG apportions its funds. Money within these funds is nontransferable among one another.

Any money the school receives from the USG, tuition or student fees is specifically earmarked for one of the four budget categories. The education and general budget category is composed partially of dollars provided by USG and partially by student tuition. Salaries are one area that is funded by the education and general budget.

Since this money is so strictly divided, the cuts to employee salaries cannot be compensated by extra money from other categories, such as facility development and student activities.

Money Trickles Down

Each year state revenue funds USG, and in turn USG funds GCSU. The state revenue is generated from sales tax along with other income streams. Since the decline in state revenue due to the depressed economy, USG was granted less funding, which means GCSU was provided with less money than in years past.

The education and general budget, a category of GCSU’s budget comes from, which is generated from, and student tuition.

Due to the recent decline in state revenue of 9 percent since July 1, the portion of GCSU’s budget- the education and general budget- that pays salaries has been cut leading to additional furloughs, health care plan changes, and possible additional student fees.

The university system is now trying to find ways to cut corners and save.

Stimulus Money

The federal stimulus package, enacted July 1, facilitated GCSU with the means to make soft-money purchases. Stimulus money supplements nearly 5 percent of GCSU’s budget and is only guaranteed through fiscal year 2012 and can only be used on one-time expenditures such as building repair and technological improvements. Hires, permanent positions and salaries cannot be funded with this money.

Unanswered Questions:

Many of the details involving budget cuts are still left to be determined.

While, professors are required to take six furlough days before June 31, 2010, and three before Jan. 1, it is written in contracts that up to 10 furlough days may be utilized. Dates have not been decided and there is no public timeline for when the dates will be announced.

Leland has implemented a Strategic Resource Management Taskforce, which will review budget reduction plans and welcomes input from the GCSU community including students. To check up on the budget situation or to leave comments and ideas visit: http://info.gcsu.edu/intranet/president/budget/

Every University System school produced budget drafts with the possibility of a 4, 6 and 8 percent financial cut. Currently, GCSU is running its budget with a 6 percent cut. If it becomes necessary to increase to the 8 percent cut-reasons for this are undetermined- one of the ways the school will produce the extra dollars is by charging students a $150 student fee, starting in the Spring 2010 semester.

President Leland will hold another open speech Aug. 24 at 3 p.m. in Russell Auditorium to update the campus community on administrative decisions and to field questions.

Posted by Colonnade Archives on Aug 7 2009. Filed under News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry