ASU and DSC Presidents Announce Fiscal Year 2017 Budget Decrease

Staff Report From Albany CEO

Tuesday, August 2nd, 2016

Art Dunning, president of Albany State University, and Richard Carvajal, interim president of Darton State College, announced plans to reduce operating expenses for the Fiscal Year 2017 budget in response to a significant decrease in enrollment since 2011.  As a direct result of these enrollment declines, revenue from state funding and tuition has decreased. Measures to right-size both institutions and create cost savings will include the reduction of faculty and staff positions, the restructuring of departments and elimination of low-producing academic programs.

“We are taking action now to right-size both of these institutions to make them stronger for the future, and ultimately for the long-term health and financial stability of the new university that will serve Albany, southwest Georgia and the state,” said Dunning. “ASU has one of the lowest student-staff ratios within the University System of Georgia of 8 to 1, while the average ratio in the University System of Georgia is 15 students to 1 staff.  A reduction in staffing is necessary in order to bring us closer to the appropriate staffing levels.

“We will continue to look for ways to increase efficiencies and effectiveness for the educational benefit of our students,” Dunning added. “We deeply regret that decisions had to be made that resulted in the reduction of faculty and staff.  We appreciate the commitment and service of the people impacted, and we are grateful for their service to our students, institutions and the Albany community.”  Dr. Dunning also said transition assistance will be available to employees impacted by the reduction.

Today, managers informed employees whose positions will no longer exist after September 30. ASU is reducing 80 positions, 48 of which are filled.  DSC is reducing 30 positions, none of which are filled.  Darton State had multiple reductions in force in 2015 that eliminated 20 filled positions and has maintained a hiring freeze which allowed only the most critical roles to be filled since early 2015.

To assist the affected individuals, transition support will be provided, including: a COBRA update regarding insurance, resume writing workshop and Employee Assistance Program. Albany State will be working with the local Department of Labor to provide employees with information resources, workshops and seminars on a variety of topics including financial planning and workforce readiness and preparedness.

From 2011 to 2015, ASU has experienced a 25 percent decline in enrollment, while DSC has experienced a 10 percent decline. The enrollment declines at ASU and DSC translate into a Fiscal Year 2017 state funds reduction of $980,202 for ASU and $851,962 for DSC. The loss of tuition income results in a further $1.5 million reduction at ASU and $2 million reduction at DSC.

“Although we anticipate another decline in enrollment this fall, we will be working across our campuses to identify, encourage and develop solutions to increase retention and enrollment,” said Carvajal. “We are focused on making the new ASU the best higher educational opportunity for our students and this region.”