Tuition increases probable for University System of Georgia

Two days after the University System of Georgia laid out a sweeping plan that would cut hundreds of jobs and millions of dollars from the colleges and universities, a General Assembly joint subcommittee today showed little appetite to eat a $300 million shortfall with cuts alone.

The possibility of steep tuition increases for the 300,000 public university students in Georgia was put on the table.

Sen. Seth Harp, a Columbus Republican who chairs the Senate Committee on Higher Education, said what would likely follow is a blend of tuition hikes and cuts.

“That’s what we have to do,” he said.

University System Chancellor Erroll Davis matter-of-factly addressed the subcommittee.

“If I may quote Sen. Harp, everything is on the table,” Davis said. “We were asked to put everything on the table.”

And the University System did.

After last Wednesday’s hearing, Davis went to the 35 presidents and challenged them to come up with $300 million in cuts — and he gave the schools 48 hours to do it. The University of Georgia came up with a plan that included more than $58 million in cuts, the elimination of more than 1,400 jobs and capping student enrollment, meaning 500 fewer freshmen and 1,000 fewer transfer students would be accepted.

Columbus State University recommended cutting 44 positions, including the possibility of firing some tenured faculty.

During the hearing, Davis presented the possibility of a 35 percent tuition increase.

At three of the research universities — University of Georgia, Georgia Tech and Georgia State — the increase would drive annual in-state tuition up more than $2,000 to $8,195. At the smaller schools like Columbus State University, the tuition would increase more than $1,300 a year to $5,230, according to information presented in the hearing.

That tuition hike would generate an estimated $175 million, more than half of the projected shortfall.

The Board of Regents would have to approve any tuition increase at the state’s 35 public University System schools.

“The board is acutely aware of the impact of increased tuition on the families of this state,” Davis said.

There is also another consideration — the lottery-funded HOPE Scholarship, which goes to students who maintain a grade point average of 3.0 or greater. Any significant tuition increase could begin to drain HOPE reserves and set in place triggers that would reduce the amount of money students are eligible for.

Of the 301,000 students in the University System, more than 194,000 meet the HOPE residency requirements, according to data provided by the University System. There are more than 76,000 students — or about 40 percent of those HOPE eligible — receiving the scholarship, which pays tuition and partial books and fees.

About 32 percent of Columbus State’s more than 8,100 students receive HOPE.

One suggestion from Harp, that was not embraced by the chancellor, was graduated pay cuts for all University System employees. Those making under $50,000 a year would take no cut, while those making in excess of $250,000 would take a 20 percent hit. Davis pointed out that 70 percent of the University System’s employees make less than $50,000 and 92 percent make less than $100,000.

“If you do that, you will get $55 million and $30 million of that would come from people making less than $100,000,” Davis said. Harp said he has received a positive response to the across-the-board graduated pay cut.

“It was well received by everybody, except the chancellor,” Harp said.

Davis made it a point to illustrate what the cut would be if the entire $300 million was reached solely through pay cuts. Each employee would have to take a 28-pecent decrease in pay.

One of the proposed cuts from the University of Georgia was to eliminate the statewide 4-H program and cut in half its county extension program. Rural lawmakers rallied to protect 4-H, a program that develops citizenship, leadership and life skills in young people.

The chancellor got the point.

“Over the last four days, I have learned a lot about 4-H,” he said. “It’s an important program, but we have a lot of important programs. We touch everybody’s life in this state. Something has got to give.”

Rep. Richard Smith, R-Columbus, said the University System’s exercise to identify where the cuts would be made has heightened the awareness of the budget crisis.

“Some of the cuts — not all of them — have created a public hysteria,” Smith said. “The cuts also show the attitudes some presidents have over certain programs within their own school. They don’t treat them all equal. And that’s a problem.”

Smith is retired county extension agent.

Davis said the cuts were as calculated as they could be, considering they were made in less than a week.

“I am aware of the risks of creating some public concerns,” he said. “Our presidents were instructed not to submit anything, if called upon, they were not prepared to do.”