AUGUSTA — Georgia college students may see an unprecedented midyear tuition hike if a proposal by the governor to cut $68 million from the state University System budget is approved.
The state's three largest schools — which stand to lose the most money in the cut — say a January tuition hike could be unavoidable if they are to maintain their faculty and course offerings through the current fiscal year, which ends June 30.
"That's about the only way to get some relief," said Ron Henry, Georgia State University provost. Georgia State stands to lose $7.3 million if the full cut is realized. "My president [Carl Patton] is one of the ones strongly advocating it, and I am, too."
University of Georgia and Georgia Tech officials also said a midyear increase is among the options they have identified to make up for the lost money.
"That is an option I'm sure every institution of the 34 [state schools] has on its list," said UGA Provost Arnett Mace.
Any tuition increase would require the approval of the Board of Regents. Chancellor Thomas Meredith declined Tuesday to comment on the possibility. Meredith said he had asked the governor to review the budget reduction, which would require schools to lay off employees and limit course offerings to students.
"Until we hear the results of that review, it's premature to speculate," Meredith said.
Longtime University System administrators say they are not aware of Georgia's regents ever approving a midyear increase. Nationally, several schools have adjusted tuition rates in January to make up for midyear budget reductions. The University of California and California State University systems approved midyear tuition increases in December 2002.
Georgia universities were stunned almost two weeks ago by word that Gov. Sonny Perdue's office was looking at midyear budget cuts that could amount to as much as a $68 million reduction in the system's $4.5 billion budget.
Perdue's office said the cuts would be needed to balance the budget for the current year, which includes substantial increases in health care costs.
"All of us were realistic enough to realize there might be a potential reduction," Mace said. "The magnitude of it did surprise me."
Perdue spokesman Dan McLagan said higher education was a high priority for the governor and pointed out that the University System so far has been spared the major cuts that have affected other departments.
"We look forward to working with the regents to identify potential savings and options," McLagan said.
The state's $16.37 billion budget will be adjusted during the 2005 session of the General Assembly convening Jan. 10.
Regents learned of the possible budget cut just days after approving a $180,000 salary increase for Medical College of Georgia President Dan Rahn. The regents also approved a policy that would make the state responsible for paying a university president's full salary, including the bonus pay and deferred compensation that has been paid by university foundations. Regents are asking the foundations to voluntarily contribute money equal to the amount of the supplemental compensation to the general fund.
In June, the regents approved 2 percent salary increases for all 34 presidents and the chancellor. Salaries of the four research university presidents have increased by 65 percent to 100 percent since 2000.
In May the board authorized a 5 percent tuition increase for all schools. The increase — which costs students at research universities an additional $80 a semester — was substantially less than last year, when regents raised tuition at the research schools by 15 percent, at regional and state schools by 10 percent and at two-year colleges by 5 percent.
This year's increase, held low at Perdue's request, was well below the 10 percent both UGA and Georgia State had said they would need to maintain service to students.
With the current projected cut, Henry said Georgia State would be forced to eliminate some staff, forgo admitting new freshmen for the spring and summer sessions, and limit transfers to students already at schools within the University System. Georgia State cut $4.5 million in administrative costs last year, which included laying off 32 staffers and eliminating two degree programs.
"We will look very hard at other academic programs," Henry said.
Georgia Tech Provost Jean-Lou Chameau said the cuts would force Tech to lay off part-time and adjunct faculty members and staff, and offer fewer course sections, "which means it could take students longer to graduate."
The institute doesn't want to raise tuition, he said, but may have no other choice.
"I wouldn't be surprised if we have to go to a midyear increase," said Chameau, whose school would lose $7 million with the full cut. "I don't see any way we could avoid it."
— Staff writer Nancy Badertscher contributed to this article.