Inflation undercuts added funds for Georgia colleges

ATLANTA --- Despite an increasing flow of money to the state's network of 35 colleges and universities, funding for higher education in Georgia has actually declined when adjusted for inflation, according to a recent report.

The 2008 "progress report" on education goals, issued by the Southern Regional Education Board, doesn't include the budget cuts lawmakers will consider for the current fiscal year, which ends June 30, and the coming fiscal year.

The board, an interstate education compact between Georgia and 15 other states, keeps up with the goals as part of its "Challenge to Lead" reports.

According to the report, Georgia's funding for four-year colleges -- including state spending, tuition and fees -- increased by $501 million between 2001 and 2007, a boost of 31 percent and an increase of 27 percent for each student. But when inflation is factored in, the funding actually fell by 19 percent, or $2,837.

"Georgia's funding increases for four-year institutions lost ground to enrollment growth and inflation from 2001 to 2007," the report stated.

The same was true in two-year schools. In that case, the state's 34 percent increase was offset by 42 percent enrollment growth. When inflation was factored in, funding slumped by 26 percent, or about $2,248.

The drop-offs in funding for Georgia were steeper than those for other states in the region. Adjusted for inflation, the region's four-year funding dropped by 2 percent and two-year funding by 4 percent.

The University System of Georgia has already submitted proposed budget reductions for the current fiscal year because of instructions issued by Gov. Sonny Perdue. He did authorize the system to include $114.7 million in new funding for the coming fiscal year that is provided by the formula used to determine how much the system should get each year. But the cuts would be counted before the new funds are added in.

System officials have said they don't expect to have the cuts replaced in the future, but Chancellor Erroll Davis said after the regents approved a trimmed-down budget that quality would not suffer.

Reach Brandon Larrabee at (678) 977-3709 or brandon.larrabee@morris.com.