This case study synthesizes interview data with other sources to paint a descriptive picture of governance and related issues facing Georgia's system of higher education. It is based on documents gathered from public offices, higher education institutions and relevant publications. Interviews with state officials, education administrators, board members, faculty, and staff took place in June and November of 1995 and January of 1996.



State Context

Economic Situation
Political Context

 

With 7.1 million people, Georgia is the tenth most populous state in the country and the smallest of the seven states in this study of governance structures. Georgia has grown significantly over the last two decades. The Olympic games, accompanied by a strong economy and a substantial in-migration (particularly into the Atlanta metropolitan area), have made Georgia one of the most economically vibrant of the 50 states over the past several years.

As Table 1 indicates, Georgia has one of the lowest per capita incomes (at $21,300) of any of the seven states in this study, but it also has a lower-than-average percentage of its population in poverty. Georgians are about average relative to other study states in terms of the percentage of its population with a baccalaureate or professional degree, as well as the number of new high school graduates per 1,000 population.

Table 1
Contextual Variables for Georgia Compared to Selected States
(Numbers in Percentages Represent Rank Among the Seven Study States)
Contextual Variables
High
(1-2)
Average
(3-5)
Low
(6-7)
U.S. Average
Population (in Millions) (1995)
7.2 (7)
Per Capita Income (in Thousands) (1995)
$21.3 (6)
$22.8
Potential Tax Revenue (1995-96)**
97 (4)
100
New High School Graduates per 1,000 Population (1995-96)*
9.2 (4)
9.4
Role of Private Higher Education§
Limited
Role of Governor*
Moderate
% of Population with Associate Degree (1990)
5.0 (7)
6.2
% of Population with Baccalaureate Degree (1990)
12.9 (5)
13.1
% of Population with Graduate or Professional Degree (1990)
6.4 (5)
7.2
% of Population 24 Years Old or Younger (1995)
36.9 (3)
35.5
% of Population that is Anglo (1990)
71.0 (6)
80.3
% of Population Who Do Not Speak English in Home (1990)
4.8 (7)
13.8
% of Population in Poverty (1994)
14.0 (6)
14.5
High School Dropout Rate (1992 to 1994 Average)
10.0 (4)
9.0
* This figure is expressed as an Index: National Average = 100.

Sources: Unless otherwise noted, data are drawn from Chronicle of Higher Education Almanac 43, no. 1 (September 1996), pp. 51-52.
*
From K. Halstead, State Profiles for Higher Education 1978 to 1996: Trend Data (Washington, D.C.: Research Associates of Washington, 1996), pp. 21, 24.
§ From Task Force on State Policy and Independent Higher Education, The Preservation of Excellence in American Higher Education: The Essential Role of Private Colleges and Universities (Denver: Education Commission of the States, 1990), p. 35.
* From J. M. Burns, J. W. Peltason, and T. E. Cronin, State and Local Politics: Government by the People (Englewood Cliffs, NJ: Prentice-Hall, 1990), p. 113.


Throughout our interviews, "change" was the word used most often to describe the current environment in Georgia. According to individuals we interviewed, the state is "in transition," "changing rapidly," and "in a period of evolution." Some of this transformation is due to in-migration from across the country. Changes have also been occurring because of the spotlight that the 1996 summer Olympics brought to the state. The excitement generated by the Olympics, the World Series (Atlanta won the title in 1995) and the strong economy created a very upbeat environment for almost everyone we spoke with during our site visits.

State demographics are reflecting a population shift from rural to urban areas, due particularly to the growth of corporate headquarters in Atlanta, such as CNN, Delta Airlines, UPS, and Coca Cola. The population of Georgia is heavily concentrated in the northern part of the state, especially the Atlanta area. This is also the part of the state that is growing most rapidly. Georgia experienced growth rates of close to 20 percent in the 1980s, and is expected to continue to grow, adding an additional 900,000 residents in each of the next three decades. The southern part of the state is growing, but not nearly at the same rate as the north. The differences between regions of the state was characterized by one politician who said, "Take Atlanta out of Georgia and you would have Mississippi." There are many divisions in the state, including urban-rural, north-south, and sub-regional ones, that make any type of statewide coordination complex. The changing nature of the demographics transforms the expectations for higher education as well.

Almost everyone we spoke with agreed that in Georgia, education in general and higher education in particular have recently been the beneficiaries of a strong economy and a supportive Governor. A state that has historically not shown a great deal of support for higher education (over 80 percent of Georgia citizens do not complete any formal educational program beyond high school) Georgia is now shifting new resources into higher education and trying to raise aspirations and expectations of students to enter the state's colleges and universities.

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Economic Situation

"State finances in Georgia are in excellent shape," according to a recent national publication on state policy. Employment growth in the state during the early 1990s was more than 12 percent, compared to a national average increase of 3 percent for the same period. State revenues are drawn from a mix of income, sales, and property taxes. Most people we spoke with believe that the state's economy is strong and would continue its growth for several years, but there have been some predictions of an economic downturn. State officials noted that state revenue increases are projected to slow over the next four to five years. Just as these projections were being released, the state passed a tax reduction package that will essentially eliminate the sales tax on food over a three-year period, causing many to fear even further revenue declines.

To address potential revenue declines, the Governor called on all state agencies in the 1996 budget process to develop a proposal to redirect five percent of their budgets. All agencies were to find five percent of their previous year's budget that could be eliminated; then, they were to propose how they would reinvest that five percent in their highest priority areas. In their overall budget request, agencies were directed to ask for no more than a 6.5 percent increase (the estimated rate of economic growth) over their budget for the previous fiscal year; salaries and capital projects were not included as part of this limit. Depending on how the Governor and General Assembly assessed their redirection of funds, agencies could expect to receive from 95 to 106.5 percent of the previous year's budget.

After the decline in state appropriations in the early 1990s, the University System of Georgia enjoyed increases in state appropriations of 6, 13 and 20 percent for fiscal years 1993, 1994 and 1995, respectively. Table 2 shows the amount and percentage of the state budget for the University System of Georgia for selected years.

Table 2
State Appropriations and Percent of State Budget For the University System of Georgia
(Selected Years Only)
1985
1990
1994
1995
State Appropriations (In Millions) $634.6 $913.3 $1,061.3 $1,274.6
Percent of State Budget 14.5% 11.9% 11.5% 12.5%
Source: University System of Georgia, Information Digest 1994-95 (Atlanta: 1996), p. 71.

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Political Context

Governor

In Georgia the Governor has moderate influence constitutionally. The Governor's greatest influence comes from the line item veto (which is exercised regularly) and appointment powers. Since the current Governor, Democrat Zell Miller, is in his second term, he is unable to succeed himself in 1998. Prior to his election he served 16 years as Lieutenant Governor. The key component of his first gubernatorial campaign called for the establishment of a lottery whose proceeds would support education. This was a tough sell to some in Georgia who saw gambling as conflicting with their religious beliefs, but he was elected nonetheless. Miller was reelected in 1994 by a very slim margin and most believe that his education initiatives were what carried him to reelection. Miller is described as "middle of the road," "pragmatic," and able to work successfully with legislators from both political parties.

Several observers noted that Miller has been able to take political issues away from his opponents. One example is privatization, an issue that has been widely portrayed as backed by Republicans, but one that Miller has taken into his own hands. Miller formed a commission to examine privatization in early 1995. Under the Miller administration, parks, computer services, medical facilities, and prisons are all candidates for privatization. Privatization talk has spread to higher education as well, according to several respondents, and there have been some discussions of privatizing the state's student aid agency.

A second example of Miller's taking "Republican" issues as his own is the recently enacted tax cut; the General Assembly in 1995 passed a tax cut proposal at the very last hour only to have it vetoed by the Governor on the grounds that it was unconstitutional. However, it was clear at that time that the tax cut issue would be back in 1996, this time as the Governor's initiative. The Governor did propose a tax reduction package in January 1996 that was swiftly passed by the Assembly.

While the Governor's office in Georgia is said to have only moderate power constitutionally, the Governor can have a great deal of influence over higher education, according to most individuals we spoke with. Specifically, the Governor appoints the members of the Board of Regents, the statewide governing board for the University System of Georgia. In addition, the Governor has significant influence over the amount of money that higher education receives during the budget process. Governor Miller and others have been referred to as "education Governors" who have made a real difference for higher education. A long-time university administrator said that when Georgia has had a Governor that understood higher education, things have happened. Many attributed Miller's experience as a college professor before entering politics as one reason that he has been so supportive of higher education. His second inaugural speech focused exclusively on education issues. One legislator said, "He has a commitment to education that is not just political rhetoric." This commitment is most evident in his designation of lottery funds to education, and specifically through his creation of the HOPE scholarship program, which has now become a model for a national scholarship effort.

General Assembly

The General Assembly (the formal name for the Georgia Legislature) consists of 236 legislators, including 56 senators and 180 representatives. All seats are up for reelection every two years. In 1995-96, both houses had a Democratic majority (35 to 21 in the Senate and 114 to 66 in the House), though the Republicans gained significant numbers of seats in the 1994 elections. The General Assembly is in session 40 days every year.

According to one respondent, the high turnover of legislators over the last four to six years has left no towering figures for higher education in the General Assembly. In general, however, the Assembly was described as supportive of higher education. The key positions in the General Assembly for higher education, according to one legislative staff member, include the Speaker of the House, the Lieutenant Governor, the chairs of the Appropriations Committees, and the chairs of the Higher Education Committees. According to one University System representative, the Governor and General Assembly have a significant influence on higher education because they "are responsible for funding the system and for setting the expectations of the public."

At the time of our visit there was a good relationship between the University System of Georgia and the General Assembly, and reportedly good communication between the chancellor of the University System and the key legislators. Essentially, the University System is responsible for lobbying; although institutional presidents talk to their own representatives, they typically do so in the name of the system.

The Appropriations Committees in both houses have the most direct impact on higher education because this is where the budget deals are made. The Higher Education Committee in each chamber (in the House this is called the University System of Georgia Committee) technically has responsibility for policy issues, although in practice the Appropriations Committees, through their budget powers, also exert influence over policy matters. Each Appropriations Committee is divided into subcommittees for various areas of the budget, and typically the chair of the Higher Education Committee in each chamber chairs the Appropriations Subcommittee for the University System. This gives the chair of the Higher Education Committee more influence over higher education than similar positions have in most other states, where Higher Education Committees are disconnected from the appropriations process.

In general, however, the Assembly does not have that much influence in higher education, largely due to the constitutional status of the University System of Georgia. Because the system has constitutional autonomy, the only real levers are in cases of new money or new initiatives. According to one legislator, "The Higher Education Committee does not handle much legislation."

Because of constitutional autonomy, legislators and university administrators tend to agree that the Assembly has "kept its meddling in higher education to a minimum" and that it respects the authority and responsibilities of the Board of Regents. One legislator said, however, that the Assembly needs to do a better job of holding institutions accountable for the money they spend, even though the institutions have constitutional autonomy. "We don't have the oversight we should have from a policy perspective," he said. "We could be stronger within our existing system." Another legislator suggested that while there has not been much scrutiny of the money that was spent in previous years in higher education, those kinds of questions will soon be asked by legislators who want to see results. The chancellor has tried to anticipate these expectations by presenting a voluntary annual accountability report.

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