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Committee advances bill to extend carryforward authority for Georgia public higher-education institutions
Summary
The Senate Finance Committee voted to advance a committee substitute (LC610395s) extending an existing carryforward authority that lets University System of Georgia and technical colleges carry limited percentages of certain institutional revenues forward for planning and emergencies.
President Pro Tem introduced committee substitute LC610395s, saying it would extend an existing carryforward policy first enacted in 2003 and repeatedly renewed. He told the committee the bill mainly corrects a scrivener's numbering error and extends sunset provisions for five years.
The measure would continue limits that cap University System of Georgia tuition reserves at 3% and technical colleges at 15%, and it codifies reporting: an annual October report detailing carryover funds and their sources. "This measure allows for better stewardship of state taxpayer money where you're not having to use it or lose it before the end of the fiscal year," the President Pro Tem said.
Chancellor Sonny Perdue, who testified in support, said rolling balances for the university system have been roughly $500 million over the last five years and that the carryforward authority helps institutions handle multi-year projects and unexpected facility failures. "It tells you where the money came from. It tells you where it's going, what it's being used for," Perdue said, noting the report provides oversight and accountability.
Committee members asked for detail on the size and makeup of the balances. Perdue and other witnesses reported $504,914,163 for University System of Georgia institutions and $76,647,174 for the Technical College System. Committee members and witnesses stressed that most of those balances are non‑state-appropriated revenues — tuition, technology fees and indirect cost recoveries — and that tuition reserves have an explicit 3% limit.
Senator Cowher clarified: "These are tuition fees, different technology fees, and income received by the universities, not from our taxpayers." Commissioner Dozier added that the technical colleges rely on the 15% reserve for cash‑flow needs tied to academic-year timing and lagging funding formulas.
Senator Kauser moved that the committee give the committee substitute a "due pass" recommendation; Senator Steele seconded. The committee voted in favor; the motion carried and the bill will proceed to the rules committee.
Next steps: the committee advancment sends LC610395s to rules for further consideration.
