University Budget Update

Wow! Georgia Tech faculty getting their raises, but students have to pay an extra $100 in fees and 5% in health insurance for Spring term. Huh? Full communique from the university follows.

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Faculty, Staff, and Students of Georgia Tech:

The current global economic turmoil has altered virtually every ledger in every industry, and academia is no exception. I write to you today to give you a brief overview of how we are responding to the latest developments.

There is some good news. University System of Georgia Chancellor Erroll Davis recently sent word that funding for faculty and staff merit pay increases will not be removed from the budget and will be implemented as planned beginning January 1, 2009. I am pleased to report we will be able to reward the service and dedication you have demonstrated on behalf of this institution.

However, it is widely believed that current state revenue projections will require the University System to take an 8 percent reduction for the current fiscal year (July 2008-June 2009) rather than the present 6 percent operating assumption. At 8 percent, Georgia Tech’s share will be more than $23 million.

To help the University System offset this additional reduction, the Board of Regents convened a special meeting yesterday, approving two measures — a temporary student fee and a change to health insurance premiums — that will have an immediate impact on our community. The following linked documents from Chancellor Davis explain the actions taken in detail:

* Student academic fee
http://www.gatech.edu/announcements/studentletter.pdf

* Employee insurance premiums
http://www.gatech.edu/announcements/employeeletter.pdf

Faculty and staff will receive additional information from Human Resources regarding a special open enrollment for health insurance plans by the end of this week. Students are encouraged to investigate their options with the Office of Scholarships and Financial Aid regarding the student fee.

Georgia Tech’s resiliency is being tested, and we are all being asked to make sacrifices for the sake of this institution and its core mission. Institutional leadership is carefully reviewing our operations, and I believe Georgia Tech can grow stronger as a result of the opportunity to create efficiencies and reduce costs.

We will continue to keep you informed on these or any other key issues. As always, your comments and suggestions are welcome.

Sincerely,

Gary B. Schuster
Interim President
Provost and Executive Vice President for Academic Affairs

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