Medical College of Georgia will weather budget cuts without layoffs and a hiring freeze and still expand across the state, President Daniel W. Rahn promised Thursday.
In his annual State of the University Address, Dr. Rahn said the school will make plans to cut up to $11 million to help the state meet a projected shortfall of $1.6 billion. Gov. Sonny Perdue has asked state agencies to prepare at least a 6 percent cut, but Dr. Rahn said MCG leaders are planning to cut 7 percent.
About a quarter of the school's funding comes from the state, and MCG might look to other funds, such as research grants, to make up the difference, he said. The school's part of the year-end margin generated by its health system -- which this year is a projected $7.6 million -- is normally reserved for strategic projects, but Dr. Rahn said he is considering using it this year to help fund some positions.
"Please know that we are working hard to plan our reductions in a way that doesn't put the brakes on our forward momentum, but we have to be realistic," he said.
Employees are being asked to cut down on state-paid travel, and Dr. Rahn said the school is taking a hard look at vacant positions.
"I would expect that some unfilled positions that would be nice to be able to fill will be eliminated," he said. "Others may be delayed."
But if the budget deficit remains as it has been projected so far, "we are not going to have layoffs," Dr. Rahn said.
Plans to expand the School of Medicine to a branch campus in Athens in conjunction with the University of Georgia and to clinical campuses in Albany and Savannah continue. And MCG is getting ready to take over neighboring Gilbert Manor housing with $10 million from the city. The project will come before the Augusta Commission Finance Committee on Monday and the full commission a week later, Mayor Deke Copenhaver said.
"I don't anticipate any problems," he said.
The $6.9 million of that money that will go to the Augusta Housing Authority for the property will result in new housing in the city as well, City Administrator Fred Russell said.
"We get that back as an investment in the community right off the bat," he said.
Reach Tom Corwin at (706) 823-3213 or tom.corwin@augustachronicle.com.
THE MONEY
Augusta officials are looking at an intricate financing plan for the $10 million that will be used to buy the Gilbert Manor public housing complex, raze the buildings and prepare the site for Medical College of Georgia. Officials will take $10 million from reserves and deposit it in five local banks, Augusta City Administrator Fred Russell said.
The money will be returned in the form of low-interest loans, and the reserves replenished with special purpose local option sales tax funds in the next two to three years, he said. The move would allow city officials to access the funds in case of an emergency, but it also gives the city a better deal on borrowing the money, Mr. Russell said.
Comments
Mr. Russell, how does this result in hew housing for the city? This is a political loan (extortion) to a group that is trying to expand elsewhere. How can Augusta be guranteed that it will ever be repaid? Will Rahn form another foundation, or real estate company to handle this? I doubt I will see that loan repaid in my taxpaying lifetime.
I hope the commission shows some integrity and denies any funds for this purchase. After all, the city-county gov't is having it's own budget problems.
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