AMERICUS — Monday, March 1 was the start of the second week of Recess. As I mentioned last week, the break was to allow the Appropriations Committee an opportunity to write a balanced Budget for FY 2011. Not a small task any year, but especially difficult this year with declining revenues. A lot of work has been done. The folks at the House and Senate Budget offices have been burning the midnight oil writing and re-writing the different parts of the Budget. The thing to remember is that if you adjust a department or program, it has a domino effect on the entire Budget, so great care has to be taken, not to adversely affect other areas. We also don’t what to make cuts that will jeopardize federally matched funds or grants. These funds we get from the federal government that matches state funds for programs in education, healthcare and transportation, to name a few. The bottom line is that the Governor’s proposed Budget was too optimistic. It projected a 4 percent growth in revenue and actual revenues are down. Now the challenge is to adjust for the anticipated $1.1 billion shortfall. One of the proposals in the Governor’s Budget was to sell part of an Environmental Loan Fund to investors. The Georgia Fund, which is administered by the Georgia Environmental Facilities Authority (GEFA) was created to provide low-interest loans for water and sewer projects to local governments that do not have the financial capability to borrow the monies themselves. The Georgia Fund currently has assets valued at $642 million. The Governor’s proposal to sell $500 million to investors would greatly reduce the funds available to local governments. This, in turn, would force local governments to postpone or cancel local water and sewer projects. Those governments able to find financing in the private sector would end up paying more interest and in turn, charging more to the consumers. Another problem is the fact that Georgia would only get $288 million from the sale of these loans. I personally don’t think that is enough; besides these monies were used by the City of West Point to help land the Kia Motor Corporation plant, a major economic windfall for the State of Georgia. This is just one example of how the State Budget not only affects current programs, but a misstep would add more costs to our local governments and restrict our ability to attract new industry. Monday afternoon, several of the members of the Joint Appropriations-Higher Education committee met with Chancellor Erroll Davis, his staff and members of the Board of Regents. The Chancellor had been asked to provide a document showing the effects of additional cuts to the University System of Georgia. This scenario was neither approved nor reviewed by the Board of Regents. It was simply informational in nature. This was a very sobering document. The effects of the cuts were draconian. If implemented, these would have lasting effects on the quality of higher education in Georgia. Some of the items that University of Georgia (UGA) President, Michael Adams (who draws an annual salary of $661,000 from Georgia taxpayers), put on the chopping block are:

• Eliminate the 4-H program

• Close half of the County Extension Offices

• Eliminate the Archway Partnership

• Close the State Botanical Gardens

• Reduce support for the Veterinary Teaching Hospital

• Close WUGA radio station

• Reduce enrollment by 1,500 students

System-wide 4,039 positions would be eliminated. This would cap admissions and drastically reduce the course and degree programs offered. Chancellor Davis very accurately said “such a reduction would dramatically and negatively alter a University System in which the people of this State have invested so much; a reduction of this size is not in the best interest of Georgia and its future economic development.” After reading the document, I immediately realized that such drastic cuts were unnecessary and only serve to cause alarm.

At Tuesday’s work session, in the Appropriations Capitol conference room, we discussed these proposals and continued the process of trying to reach a figure that would match revenue and provide the University System with the most funds possible. I spoke with Department of Revenue Commissioner Bart Graham later that afternoon. He said February numbers were still coming in and as soon as they were final, he would give that information to the Governor. He did say that e-filing of State income tax returns was up from last year and may have a downward effect on February’s revenue. Wednesday, Chancellor Davis appeared before the Joint Appropriations-Higher Education committee in room 341 of the Capitol. For two hours, he was questioned on all aspects of the proposed additional cuts to the University System. He said that the University System had approximately 40,000 employees with 10,000 of those being faculty. He also said system-wide, we receive $1.1 billion in tuition and that 30 percent of the students were on the HOPE Scholarship. He added that 10 percent of the student body was from out-of-state. Chancellor Davis presented his case very well and did an excellent job demonstrating to the committee that further reductions would undermine the very core of the University System. He felt that all funds appropriated to the University System of Georgia are an investment into the future success of our State. Our most precious resource is our youth. The State of Georgia has one of the most successful and revered higher education systems in the country and our mission is to keep it that way. Next came Commissioner Ron Jackson, Technical College System of Georgia (TCSG). He shared his proposed cuts and described their effect on student growth. He said that 67 percent of the instructors are adjunct and this figure would go up with further cuts. He stated that a $5 per credit hour increase in tuition is possible. His major concern was the potential loss of the Perkins Career and Technical Education Grant. If this happened, there would be an additional loss of $20 million to TCSG. The Perkins Grant is a $40 million federal match grant split evenly between the Department of Education and TCSG. In the technical colleges, these funds are used to hire instructors, counselors, tutors and ADA-mandated interpreters. By law, these funds must be used for credit career technical education. To receive this money, State funding for TCSG must remain at certain levels. This would only multiply the effects of budget cuts. Commissioner Jackson added that TCSG enrollment has been growing and stands at over 190,000 students. That afternoon was when the flood of e-mails started, thousands from all over the State. Everyone was concerned about the impact of the budget cuts to the University System, especially the list of proposed cuts by UGA President Michael Adams. They came so quickly and in such large volumes, it caught everyone off guard. It was obvious by the questions that the press had anticipated either a reduction in budget cuts or a proposal for a new source in revenue. They got neither. It was emphasized that the proposals had come from UGA President Michael Adams and that no final decision on their funding had been made. The budgeting process would be continuing and we were painfully waiting for an improvement in State revenue. Later than afternoon, the Marion County Middle/High School 8th-grade class made their annual trip to the Capitol. After their tour, I had the opportunity to address these bright young men and women on the floor of the House of Representatives. I explained the process of lawmaking and was inspired by their questions and proud of their interest. They were accompanied by 8th-grade teachers Cassandra Porter, Judson Peacock, Linda Rogers, Bethany Howard, and Melanie Mitchell. George Porter, principal (grades 6-8) and bus drivers Sherry Grier and Jennifer Anthony also made the trip.