No. 12, March 30, 2004

The Final Countdown
Tomorrow (Wednesday, March 31) is Day 38 of the 2004 session of the General Assembly. Lawmakers are expected to set the calendar for the final two days tomorrow. There is talk of taking a recess, which would extend the session well into April, rather than ending it this week.

Senate Acts on FY 2005 Budget

$5M Increase in MRR Funds; Minors Projects Added, Deleted

The Senate's version of the Fiscal Year 2005 Budget, adopted on March 25, contained several developments for the University System of Georgia.

There were some definite gains. For example, the Senate:

• restored the Governor's recommendation of $5 million for the Medical College of Georgia's research initiative (the House version reduced this amount to $3 million);
• added $5 million apiece for four minor capital projects (at the Gwinnett University Center, Georgia Southern University, South Georgia College and the State University of West Georgia);
• added back $10 million for the Animal Health Research Center at the University of Georgia, a capital project whose funding the House voted to eliminate;
• added $1 million for the Georgia Tech Regional Engineering Program (GTREP);
• added $250,000 for the Intellectual Capital Partnership Program (ICAPP®) Health Professionals Initiative; and
• substantially trimmed the funding reductions for several USG public service institutes.

Other actions included:

• the deletion of $6.6 million the House had added to the budget to preclude further reductions in instruction;
• the deletion of $2 million added by the House for Fort Valley State University 's land-grant mission;
• the deletion of $1.77 million in continuation funding for ICAPP® added by the House (the Senate allocated $200,000 for an ICAPP project at Macon State College, however);
• the deletion of more than $1 million added by the House for the design of a dining facility at the University System's Rock Eagle 4-H facility;
• the deletion of funding for five minor capital projects (at Columbus State University, Georgia State University, Macon State College, Middle Georgia College and Abraham Baldwin Agricultural College), three of which were recommended by the Governor;
• the deletion of $96,000 added by the House to support the information technology program at Georgia Southern University;
• the reduction from $560,000 to $300,000 of a House recommendation to fund a Water Policy Research Center operated jointly by Georgia State University, Georgia Southern University and Albany State University; and
• the restoration of the Governor's recommended funding reductions for the Center for Civic Renewal and Engagement (nearly $262,000) and the Institute for Community Business Development ($87,400).

In addition, the Senate:

• increased funds for major repairs and renovations (MRR) of the University System's aging facilities from the $50 million proposed by the House to $55 million, but declined to go with the Governor's recommendation of $60 million; and
• added funds for public library construction projects in East Coweta and Forsyth counties, but deleted funds the House had added for library projects in Wheeler, Bartow and South Bibb counties.

In yet another move, the Senate worked out a way to give University System employees a salary increase that represents a compromise between plans presented by the Governor and the House.

The Governor had recommended a 2 percent salary increase effective Fall Semester for faculty and Oct. 1, 2004, for staff. The House pared $12.5 million from this allocation by delaying the salary increases for all employees until Jan. 1, 2005. The Senate restored the Governor's effective dates, but shaved $4.25 million from the cost of his recommendation by calculating the available pool for salary increases using a different formula.

The differences in the House and Senate versions of the FY '05 Budget are being reconciled by a conference committee that worked through the weekend. The committee is expected to propose a compromise shortly.