Chancellor Details USG Budget Proposal

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In his final budget presentation for the University System of Georgia (USG), retiring Chancellor Erroll B. Davis Jr. elaborated on the reductions recommended for the USG by Governor Nathan Deal in his FY11 and FY12 budget proposals before the Joint Appropriations Committee on Tuesday, January 18th.  Though he committed to work with legislators with the resources available, Davis reiterated that challenges could wait ahead in future budget years.

In Deal’s proposed budget, which was released as a part of his State of the State address, cuts of $112 million and $185 million were recommended for the USG’s FY11 Amended and FY12 appropriations, respectively.  If enacted, these reductions would reflect a net state appropriations reduction of $550 million, or  24%, in the past three years. Enrollment at USG institutions increased by 37,000 during the same period.  Georgia Tech receives a portion of these allocations.

The University System’s formula funds, used for day to day operations, take the brunt of these cuts.  Though the amount of these funds allocated typically increases incrementally each year to compensate for enrollment growth, no increase is suggested for FY12.  The USG requested $177 million in new formula funds to offset the addition of almost 19,000 students in FY10.

Davis noted that though previous cuts have been managed through “increased efficiencies, innovation, and tuition and fee support from students,” the growing enrollment in Georgia’s public colleges and universities would require additional formula funding in coming years.

The USG bond package, used to fund capital improvements, is also greatly reduced in the lean budget proposal for FY12.  Governor Deal recommended $81 million in bond funds across the University System, less than half of the $177 million authorized in FY11.  Funding for  Tech’s Eco-Commons infrastructure project is included in the governor’s FY12 budget proposal.

In a message to the campus community, President G. P. “Bud” Peterson, who was present for the Chancellor’s presentation, explained  that “due to careful planning and prudent budget forecasting” impact to the Georgia Tech community will be minimal for FY11.  However, Peterson noted that FY12 would hold "significant challenges for everyone."

View President Peterson’s entire campus message at


  • Workflow Status:Published
  • Created By:George Ray
  • Created:01/31/2011
  • Modified By:Fletcher Moore
  • Modified:10/07/2016


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