Declining enrollment across University System of Georgia is going to lead to financial constraints, Chancellor Sonny Perdue said Wednesday before a joint budget committee.
The system is facing enrollment decline for the second year in a row, with 1.2% fewer prospective students across its 26 colleges in universities since fall of 2021.
The state government determines USG's funding according to the cost of educating students, with total credit hours from two years ago as its main input. Lower student enrollment results in fewer credit hours, meaning less money is available for operational costs.
"This demographic cliff we’re facing is serious,” Perdue said. “It’s not gonna get any better for the next couple of years either.”
Gov. Brian Kemp's proposed budget for 2024 would increase funding for the university system overall by $124 million, much of which will go towards raises for faculty and other system employees.