Dr. Steve Wrigley, Chancellor of the University System of Georgia, told state lawmakers Monday that while the state’s colleges and universities anticipate taking a big hit financially because of the COVID-19 outbreak, they will not raise tuition in the upcoming Fall.
“We will definitely feel a huge impact because of COVID-19 and proposed budget cuts,” Wrigley told members of the Senate Appropriations Higher Education Subcommittee Monday. “But we have made the decision not to raise tuition. That’s just the right thing for us to do right now. We also refunded a couple of hundred million to students for housing and dining, and we also felt that was the right thing to do.”
According to Wrigley, the University System of Georgia is expecting a loss of $350 million in revenues. USG received about $157 million in federal funds as part of the CARES Act to help offset the $350 million loss, leaving a gap of about $180 million to $200 million. A 14 percent in the budget would amount to about $361 million.
Senate budget subcommittees have been meeting for the past few weeks to prepare for the resumption of the 2020 Legislative Session. The top priority of lawmakers will be the passage of the FY21 budget. Gov. Brian Kemp initially directed state agencies and departments to prepare for a 14 percent cut in the budget. He has since said that the state revenues are down by 11 percent. Instead of the $3.3 billion in cuts that Kemp called for when he expected a 14 percent decline, the shortfall will be about $2.6 billion.
“We are in very unchartered waters in terms of where we are, and we are uncertain about what the future holds,” said Sen. Lindsey Tippins (R-Marietta) Chairman of the Senate Higher Education Subcommittee. “But the reality is that we have to pass a balanced budget by July 1, and we have to go on the best information we have in front of us.
“My desire is that the programs that survive will be the programs that are most beneficial to our state. It’s important that the major emphasis be in the areas of education that have the most return on investment for the economy and the state of Georgia.”
Wrigley said he was proud of the way the university system responded to the COVID crisis, and the flexibility shown in switching from in-person learning to online learning in a few days. He added that he was ready for the return to in-person learning in the Fall.
“While we have already been using online learning, the challenge comes with the interaction among students that are all part of the college experience,” Wrigley said. “The intangible aspects of college life that you clearly don’t get with online learning.”
According to the Chancellor, the USG plans to cut over $243 million through personnel, including tiered furloughs. Nearly $100 million in cuts will come from operations and another $18 million in travel expenses. Wrigley said the furloughs will not impact student instruction time.
Greg Dozier, Commissioner of the Technical College System of Georgia, outlined plans for cuts in the upcoming budget — including furloughs, software and travel. He reported that while the TCSG had anticipated a 10 percent reduction in enrollment over the summer, “we have been blessed so far and it appears we will have a 6 percent reduction statewide.”
Dozier reported that while eight technical colleges experienced a double-digit decline in enrollment, another eight experienced a slight increase over the summer.
