1. UGA Budget Update April 23, 2009

2. University of Georgia Budget is affected by the following: National Economy Georgia Economy and State Budget Georgia Economy and State Budget Regents’ Budget

3. National Economic Indicators Dow Jones Industrial Average 12,800 6626 7837 11,500 8451

4. National Unemployment Rate National Unemployment Rate National Housing Sales National Housing Sales NATIONAL ECONOMIC INDICATORS

5. National Inflation Rate NATIONAL ECONOMIC INDICATORS

6. Georgia Unemployment Rate GEORGIA ECONOMIC INDICATORS

7. % change from month/2008 to month/2009 % change from month/2008 to month/2009 GEORGIA ECONOMIC INDICATORS Denotes change in collection procedure Georgia Revenue Collections

8. GEORGIA ECONOMIC INDICATORS Agriculture - 6 % Community Affairs - 49 % Corrections - 5 % GBI - 7 % Natural Resources - 19 % - 19 % Public Safety - 14 % Cuts to other state agencies

9. REGENTS BUDGET CUTS FY 10 Budget cut $275 million State appropriations per student for System

10. CUTS AT PEER/ASPIRATIONAL INSTITUTIONS CUTS AT PEER/ASPIRATIONAL INSTITUTIONS 11.7 %11 %10 % 12 %15 to 25 %17.7 %

11. UNIVERSITY OF GEORGIA CHALLENGES Over 400 vacant positions shift work burdens to others Travel funds are restricted Staff/Administrative support is reduced Governor and Legislative leadership are aware of our difficulties and UGA requires long-term state support Over 400 vacant positions shift work burdens to others Travel funds are restricted Staff/Administrative support is reduced Governor and Legislative leadership are aware of our difficulties and UGA requires long-term state support Cut to UGA’s “A” Budget (Resident Instruction): $47.7 million Cut to UGA’s “A” Budget (Resident Instruction): $47.7 million

12. UNIVERSITY OF GEORGIA CHALLENGES UGA’s “B” Budget units and special initiatives cut $12 million No FY 10 merit increase Some student impact Utility shortfall of $13.7 million has been reduced to $8.7 million by management/conservation $6 million gap in insurance cost has been cut in half UGA’s “B” Budget units and special initiatives cut $12 million No FY 10 merit increase Some student impact Utility shortfall of $13.7 million has been reduced to $8.7 million by management/conservation $6 million gap in insurance cost has been cut in half What do we know?

13. UNIVERSITY OF GEORGIA CHALLENGES Board of Regents has discontinued “Fixed for Four” UGA / Georgia Tech now operate under separate tuition structure than other BOR institutions Incoming freshmen will pay 25% higher tuition than this year’s freshman class--$3,035 Tuition increase means $14 million for UGA Extension of $100 fee means $7 million Tuition for incoming students is set at a flat rate of 15 hours Board of Regents has discontinued “Fixed for Four” UGA / Georgia Tech now operate under separate tuition structure than other BOR institutions Incoming freshmen will pay 25% higher tuition than this year’s freshman class--$3,035 Tuition increase means $14 million for UGA Extension of $100 fee means $7 million Tuition for incoming students is set at a flat rate of 15 hours Tuition and formula allocation

14. UNIVERSITY OF GEORGIA CHALLENGES At UGA and Georgia Tech, almost 6,000 of the 6,758 freshmen took 13 hours or more Intent is to increase credit-hour production and speed graduation timeline Fifth-year seniors will pay the freshman rate - a 40% increase over this year At UGA and Georgia Tech, almost 6,000 of the 6,758 freshmen took 13 hours or more Intent is to increase credit-hour production and speed graduation timeline Fifth-year seniors will pay the freshman rate - a 40% increase over this year Tuition and formula allocation

15. UNIVERSITY OF GEORGIA CHALLENGES Capital funding of $5.9 million for Northwest Precinct utility plant and $26.6 million for Special Collections Library $7.7 million in new funding for the MCG/UGA Medical Partnership Special thanks to Senator Bill Cowsert and Representative Bob Smith Capital funding of $5.9 million for Northwest Precinct utility plant and $26.6 million for Special Collections Library $7.7 million in new funding for the MCG/UGA Medical Partnership Special thanks to Senator Bill Cowsert and Representative Bob Smith Much-needed funding from Legislature

16. UNIVERSITY OF GEORGIA CHALLENGES Administration has tried to allow units as much flexibility as possible in deciding how to manage the cuts Deans, directors and department heads are best equipped to manage their own budgets Administration has tried to allow units as much flexibility as possible in deciding how to manage the cuts Deans, directors and department heads are best equipped to manage their own budgets Institutional versus unit-based decision making

17. UNIVERSITY OF GEORGIA CHALLENGES Special Session Additional Cuts Layoffs/Furloughs Travel Funds Special Session Additional Cuts Layoffs/Furloughs Travel Funds What we don’t know

18. UNIVERSITY OF GEORGIA CHALLENGES

19. Important for UGA Important for Georgia Important for future (economic development) Maintaining quality will require increased state and private support Important for UGA Important for Georgia Important for future (economic development) Maintaining quality will require increased state and private support UGA is worth the investment !

20. UGA Budget Update April 23, 2009