Provost Chameau outlines state budget picture

Bob Harty
Institute Communications and Public Affairs

As the State Legislature convenes for its 147th session, the dominant topic of conversation is the state budget. With revenue still well below what Georgia needs to meet its $16 billion budget, state agencies had to cut an additional 2.5 percent from their 2004 fiscal year budgets.

This is the third consecutive year of reductions in state appropriations to the University System. With almost $40 million in cuts from the state allocation for Georgia Tech over the last three years, many are wondering what the future holds.

Provost Jean-Lou Chameau is meeting with the academic units to discuss the Georgia Tech budget picture. Last week, Chameau met with faculty in the School of Electrical and Computer Engineering to outline the budget situation and answer questions.

His message was one of cautious optimism, noting that the state accounts for only 24 percent of Tech’s total budget (see chart, below).

“The state gets a very good value for 24 cents on the dollar, in terms of our graduates and economic development impact,” he said.

While the percentage of state support has decreased, tuition revenue has increased, now accounting for almost 13 percent of total revenue. However, Tech’s top funding source is research and other external department revenues, at more than 44 percent of the overall budget.

“It has been quite phenomenal,” said Chameau. “It keeps fueling the growth engine, but I’m worried about it. It’s very difficult for any organization to maintain double-digit growth over multiple years. Having said that, research awards are currently almost 20 percent ahead of last year.”

“Yes, we have had budget cuts over the last three years, but we have managed our resources well, we’ve received our fair share of state support for higher education, we’ve done an incredible job in research and we’ve increased our tuition in a responsible manner.”

Despite the cuts, Chameau pointed out that many unit budgets had actually increased and the number of faculty remained very strong. “Keep those two things in mind coming out of a very difficult budget situation. You won’t find too many other universities that can make that claim.”

Chameau also pointed out that despite a number of promising signs, some programs are being cut and positions are being eliminated. “I like approving the hiring of people,” he noted. “Yet, cuts are notable and people are losing their jobs. It is not fun.”

As for the next fiscal year, Chameau is cautiously optimistic. “I anticipate that we will receive additional cuts from our state allocation. What that will be is difficult to know at this point,” he said. Those cuts may be somewhat offset by another record year in research, additional state revenues from workload funding and further increases in tuition.

“There is a backlash nationwide about tuition, but we are really one of the good guys considering our tuition levels,” he said.

Chameau anticipates additional targeted cuts, perhaps some additional layoffs, and a diligent approach to new initiatives. Still, he’s confident in the future. Ending his presentation with a collage of campus flowers in full bloom, he said “It is still springtime on the Georgia Tech campus.”

GT Revenue Sources, FY 04