Teammates,
I extend my heartfelt gratitude to each and every one of you for your unwavering dedication and commitment throughout this remarkable academic year. Your collective efforts have culminated in a Spring Commencement ceremony that stands as a testament to our shared goals, as we joyously celebrated 1,710 new graduates, proudly representing all five of our campuses, leaving us to walk toward their purpose. Personally, Jessica and I are honored by the way all of you have embraced and welcomed us. Thank you!
As we transition into the summer months and begin to contemplate well-deserved moments of rest and rejuvenation, I wanted to take a moment to provide you with an important update regarding the Fiscal Year (FY) 2024-2025 budgets and share some insights into our new FY25 budget. Some of these budget actions were anticipated and shared at the recent virtual town hall meeting on April 24. A recording of that meeting can be found on my website.
At their April 16 meeting, the University System of Georgia (USG) Board of Regents approved budget allocations to all 26 USG institutions. At this meeting, the board also approved several other budget-related items such as tuition and fees. The approved tuition increases are the first in five years, and the approved mandatory student fees represent a significant revision to 91ÁÔÆæ’s fee structure and create consistency for all students regardless of their campus of instruction.
The approval of campus budget allocations follows the Georgia General Assembly’s completion of the 2024 legislative session, which included passing the USG’s budget. The FY25 budget includes several positive updates and priorities for the University of North Georgia. The budget was signed by Governor Kemp last week, approved by the Board of Regents this week, and I’m excited to share a few positive updates from the USG’s FY24 and FY25 budgets.
I’m pleased to share that 91ÁÔÆæ’s portion of the FY24 state budget reduction of over $1 million, taken at the beginning of this fiscal year, was partially restored in the FY24 amended budget and is fully restored in the FY25 budget. This restoration will allow 91ÁÔÆæ to continue the positive momentum we are experiencing.
91ÁÔÆæ also received design funding for the new STEM Center of Excellence facility on the Dahlonega Campus. This capital priority support follows funding for other 91ÁÔÆæ buildings over the last several years, including new academic buildings currently under construction on the Blue Ridge and Cumming campuses, and the new Military Science Center for the Dahlonega Campus currently in design. Combined, these projects represent over $40 million of state funding over the last four years. I highlight this progress to show that the work we are doing is resonating with leaders across our state. This is a tribute to your hard work, and I again say thank you.
As was shared with you late last week from the 91ÁÔÆæ Office of Human Resources, the budget includes a cost-of-living adjustment, or COLA, to recognize the dedication of you, our faculty and staff members, who tirelessly serve our students and our entire community. This most recent 4% COLA, capped at $3,000, brings the total state’s COLA investment over the past three years for full-time, benefits-eligible faculty and staff members up to as much as $10,000. This COLA is in addition to the one-time supplement received in December 2023 that was provided as part of the FY24 amended budget. These state-driven adjustments are welcome news, as faculty and staff compensation has been and will continue to be one of my top priorities.
On a related note, I’d like to share that 91ÁÔÆæ will be officially establishing a minimum hiring rate for full-time staff. For the first time, 91ÁÔÆæ will ensure that no full-time staff member earns less than $31,200 annually, or $15 per hour. Impacted employees should have received additional information about this pay adjustment directly from the Office of Human Resources. The ability to provide this to many front-line employees follows a continuing concern expressed to me and our senior leadership team since my arrival last year. More work needs to be done to provide competitive compensation for faculty and staff, and some initial investments are outlined below, which will serve as a foundation for future salary enhancements.
The FY25 budget allocation includes an expected reduction due to declining enrollment over the past several years based on the funding formula. Here at 91ÁÔÆæ, we have spent a great deal of time ensuring that we implement this reduction in a manner that minimizes the impact on our students. Our shared value of "Students First. Always" is being realized with increasing momentum and positive outlooks for enrollment heading into the summer and fall semesters. Our numbers are up, but we have MUCH more work to do. While driven by our leadership team, enrollment strategy is a shared responsibility, and we all need to work together to recruit and retain students to prepare tomorrow’s leaders and the workforce for Georgia and the nation. We will not let this reduction deter us from becoming the university I know we can be.
As we absorb this reduction, we have also redirected funding and planned for modest tuition revenue increases to make some strategic investments to our instructional mission, strategic initiatives, and as mentioned, our most critical asset, our people. We made a strong commitment upon my arrival to invest in our faculty, both in terms of market-based compensation and professional development. Additionally, we made a commitment to invest in our staff who tirelessly serve our students and make our campuses run. I am pleased to update you on our progress relative to these commitments. Here is a summary of our thoughtful FY25 investments:
- Stabilize limited faculty lines to permanent funds: $1.3 million
- Launch new faculty lines in high-demand areas to support enrollment growth: $1.1 million
- Faculty market-competitive salary issues initial investment: $0.25 million
- Redirection of research indirect revenue to faculty professional development/travel: $0.25 million Salary adjustments to create a new full-time minimum wage and address high-turnover, high-risk staff retention: $0.7 million
- Facilities investments to align with our strategy
Of special note, the provost and I appreciate the work performed this year by the Faculty Senate Compensation Committee. In the fall, we will be working with them to develop a plan to strategically target limited available funds for addressing faculty market-competitive salary issues. I am also thankful to the Staff Council and numerous leaders across all five campuses for helping us build strategy toward our staff investments.
As we move to operationalize the above investments, we will continue to update you on any significant developments related to our overall financial picture. Our number one focus for stabilizing our budget and creating the flexibility we need to take of our people and execute our Bold Forward strategic investments is to measurably improve our enrollment from both a recruiting and retention perspective. To do this, we have thoughtfully reset our organization and have launched numerous efforts to execute this work. The great news is we are already seeing the fruit. Thank you to everyone who has helped us and is continuing to work on these strategic efforts over the summer – much work has been done and there is much to do.
I know this was a long note. I hope it sheds some light on where we are and where we are investing. There is much work to do over the summer. I look forward to sharing with you how our vision sets the conditions for our future. You may have heard me say that at 91ÁÔÆæ, we are creating a university that's never existed. Is that a bold proposition? Absolutely. But our country, communities and industries are calling us to dare boldly enough to make a difference. As a university with a rich history of producing agile-minded leaders, we are uniquely equipped and prepared to lead from the front. Please mark your calendars for 10 a.m. Thursday, Aug. 8, when we will present, "Reveille: Charting a Path for the Future of Higher Education." It will be an incredible day! Stay tuned for more information.
Thank you for the leadership, effort and commitment you show every day to our students. Your work is valued and appreciated. The work you do with our students is an investment in their journey toward purpose. It is missional work and I appreciate all you do. Please don’t hesitate to let me know if I can be helpful. Should you have questions regarding the FY25 budget, please contact me at president@ung.edu.
Bold Forward!
Mike