Town Hall Forum Institute Budget and Furlough Program

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Town Hall Forum Institute Budget and Furlough
Program

• G. P. Bud Peterson, President
• August 24, 2009

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Current Revenue Budget FY 2010

• Restricted funds gifts, grants contracts,
  other sponsored operations
• Auxiliaries housing, bookstore, campus dining,
  parking and other self-funded campus units
• Largest category sponsored operations.

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Revenue Summary 1999 - 2009
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Current Status

• Governor requested that agencies develop budget
  reduction proposals for 4, 6 and 8
• Governor directed that agencies take three
  furlough days before December 31, 2009
• Chancellor requested similar FY2010 and FY 2011
  proposals from USG institutions however,
  directed that six furlough days would be taken
  FY2010
• Furlough saving to be the initial budget savings
  action for all institutions

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Impact of Regents Actions

• Reductions absorbed in FY 2009 and 2010 budgets
• Loss of 34 million, or 11.8, of the original
  FY09 state appropriation
• Budget reduction scenarios imply additional
  losses of state appropriated funds
• 4 10.2M 6 15.3M 8 20.3M
• Total two-year reductions from original FY2009
  state appropriation
• Total reduction 44.2M, 49.3M or 54.3M
• Represents 15.3, 17.0 or 18.8 reduction

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USG Budget Reduction Strategy
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General Budget Reduction Strategy

• Program Goals
• Minimize impact on undergraduate and graduate
  instruction
• Maintain sponsored research activities in order
  to
• Meet sponsors contractual requirements
• Address recent growth research volume, including
  Federal stimulus program supported research
  awards.
• Exempt critical health and life-safety positions
  and activities
• Financial Goals
• Save State funds and meet reduction targets
• Avoid unintended consequences of reduction
• Limit the shifting of the funding fringe
  benefits, administrative overhead, and
  facility/infrastructure costs from sponsored to
  general operation budget sources

Given the economic situation in the country,
there is an amazing amount of capital
construction underway at Georgia Tech
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General Budget Reduction Strategy

• Implement mandatory furlough program achieves
  roughly the first 2.5 of the reductions needed
• Maintain moratorium on hiring exception mission
  critical positions
• Evaluating across the Institute
• Business processes operating efficiencies
• Procurement improvements strategic sourcing
• Possible re-alignment and consolidation of
  functions and services
• Assessing impacts from institutional reductions
  expenditure policies vacant positions reduction
  in force etc.

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Georgia Tech Furlough Program

• Exemptions Presidential Discretion
• Employees critical to health and life safety
• Employees earning less than 23,660 a sliding
  scale will assure no full-time employee earns
  less than 23,660
• Graduate Research Assistants and Teaching
  Assistants
• All employees of the Georgia Tech Research
  Institute
• Employees whose salary is a combination of state
  and sponsored funds furlough days to be prorated
  based upon the percentage of state funding
• All non-resident alien employees working under an
  H-1B visa for which furlough days will jeopardize
  visa status

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How it will Work

• Working to minimize financial impact on employees
  in a single month
• HR developing furlough savings plan to help
  employees plan for furlough days
• To find out more
• Furlough Web site www.gatech.edu/budgetupdate
• Campus communications
• E-mail updates
• Whistle
• hr.ask_at_ohr.gatech.edu

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Revenue Trends 1999 to 2009 Beyond
Inc. Trends Outlook

• Inflation Indices
• Consumer Price Index
• 1999 167.6
• 2009 222.0 (32)
• Higher Education Price Index (HEPI)
• 1999 189.1
• 2009 279.4 (48)

• State
• Tuition
• Indirect Cost
• Sponsored Operations
• Auxiliary

54 189 118 103 93
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Questions??
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Looking forward on a positive note
Nationally Ranked 4th in start-up companies
8th in patents filed 11th in technology
transfer

• Record number of students both undergraduate and
  graduate
• Academic quality and reputation remains high and
  increasing
• Research awards in FY 2009 at record level gt0.5
  billion
• One of the Great Colleges to Work For according
  to The Chronicle
• Initiated the Strategic Planning process

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Georgia Tech

• Thank You