Category | News

Good news, bad news for future KSU budget

Published on August 19, 2008 by The Sentinel

    A decrease in state tax revenue casts a looming shadow on the
University System of Georgia and threatens to shrink future funding at
KSU.

    In a recent memo addressed to faculty and staff, President Papp explained that on June 16 the Office of Planning and Budget directed all states agencies, including the University System of Georgia, to submit a plan for a 3.5 percent reduction in state funding for fiscal year 2009 and an additional 0.5 percent cut in 2010.

    With a total of 4 percent over a 2-year period, Papp said the Office of Planning and Budget instructed colleges to plan for strategic cuts in specific departments, not an equal reduction in all departments.

    “The key point for everybody is that it is a planning exercise just in case the state of Georgia’s tax revenues have not grown as rapidly as needed to meet the projected state budget,” Papp said.

    According to Arlethia Perry-Johnson, Special Assistant to the President for External Affairs, a report issued on August 11 by the state of Georgia said that tax revenue was down 6.6 percent in July.

    “The reduction in tax revenues announced by state officials on Monday paints a bleaker picture,” Perry-Johnson said.  “We are going to be on standby to receive more direction from the Board of Regents about potential additional proposed cuts based on the current outlook with regard to state revenues.”

    Perry-Johnson said Chancellor Davis of the Board of Regents, requested that Georgia colleges and universities submit a plan for additional cuts up to 5 percent in case the lull in state revenues continues.

    Papp said these are just projected budget cuts for funding increases that have already been approved for KSU.  Papp said that even if the 5 percent budget cut occurs, it will still be the third largest budget increase, and if reductions stop at 3.5 percent, it will be the second largest increase in state funds.

    KSU’s had a $12.2 million budget increase for the 08/09 fiscal year, bringing the total budget to $92.2 million.  If the 5 percent budget cuts were applied to the 08/09 budget, it would mean a reduction of $4.6 million.

    Current plans for the 5 percent budget cut will result in 1.1 percent reduction in the Office of Student Success, 2.1 percent in Academic Affairs and a 5.5 percent cut in all other operating units.  Divisions subjected to the 5.5 percent cuts will be University Operations, University Advancement, External Affairs, Legal Affairs and Diversity.

    According to Papp, the key in the projected budget reductions is reducing the students to faculty ratio and he said that even if the 5 percent budgets cuts are enacted, KSU will still be able to add 40 new faculty members.

    The projected cuts are just for the operating budget of the university and reductions are only planned in areas that are funded by the state.  According to Papp, the reductions would not result in an increase in student fees or tuition.

    Funding for faculty and staff development and money for travel expenses will be protected from any funding cuts.  Papp said that there is so little funding for both and expressed a need to keep both areas on the cutting edge in their professions.