Improving Your Life Through Research and Extension

FY 2005 Budget Information and Request for Georgia Agricultural Experiment Stations and Cooperative Extension Service

College of Agricultural and Environmental Sciences,
College of Family and Consumer Sciences
and the Daniel B. Warnell School of Forest Resources
The University of Georgia

Budget Request

Agriculture, forestry, environmental sciences, and family and consumer sciences are important in Georgia. Keeping agriculture and forestry strong and environmental quality high is a mandate that is taken seriously by the University of Georgia's College of Agricultural and Environmental Sciences (CAES) and one that requires a sizable and sustained commitment of state resources. Recent budget cuts in the Agricultural Experiment Stations (AES) and the Cooperative Extension Service (CES) have compromised the CAES' ability to fulfill its land-grant mission. The CAES is constantly redirecting budget resources from lower priority to higher priority programs. To maintain mission-critical activities, we request funding for the following initiatives:

Cooperative Extension Service Retiree Benefits

The CES is the only budgetary unit in the university that has to pay the employer health and life insurance costs of its retirees from its own budget. We request that the current funding and costs for these retiree benefits be transferred to the university so that the CES will be treated the same as all other university budgetary units. These costs currently total $3.3 million, which amounts to 9 percent of the CES net state budget.

Maintenance & Operations (M&O)

$1,582,715 to fund existing M&O costs, $859,842 for the AES and $722,873 for the CES, as recommended by GA Legislative Joint Study Committee, HR 462 (1997). Included in the CES request is $493,203 for the new addition to the Rural Development Center.

Annualize Salaries

$1,371,663 for annualizing salary increases, ORP, and increases in health insurance includes $514,345 for AES and $857,318 for CES. We were not allowed to request these items in out Prioritized Program Budget (PPB) but were informed that the Board of Regents included the increased health insurance needs in its FY'05 budget request.

Capital Projects

One-time funding (two projects): $5 million for construction/renovation of teaching, research, and extension animal facilities on the Athens campus and $8.6 million for a dining hall at the Rock Eagle 4-H facility.

CAES Programs & Subprograms

The University of Georgia is a land-grant institution and has a
state-mandated responsibility to provide research and extension programs that support agriculture and forestry and foster environmental stewardship. This mandated mission is achieved by the College of Agricultural and Environmental Sciences, the College of Family and Consumer Sciences and the Daniel B. Warnell School of Forest Resources.

The CAES' programs include research, teaching and extension. We provide education for students, farmers, homeowners, and others. Continued and significant state funding of the 'B' Budget, for the Agricultural Experiment Stations and the Cooperative Extension Service, is essential in maintaining program effectiveness and insuring the vitality
of Georgia's agribusiness.

Budgetary responsibility for two of the College's three programs, research and extension, lies within the Agricultural Experiment Stations (AES) and the Cooperative Extension Service (CES), respectively. Within each of the two programs are three (3) subprograms:

Program - Cooperative Extension Service

Subprograms

• Agricultural & Natural Resources (ANR)
• 4-H
• Family & Consumer Sciences

Program - Agricultural and Environmental Research

Subprograms

• Plant systems
• Animal systems
• Environmental systems

Several sub-subprograms are maintained within each of the subprograms in the Cooperative Extension Service and the Agricultural Experiment Stations.

Cooperative Extension Service (Extension Programs)

• Agriculture & Natural Resources (ANR) - 65 percent of CES Budget
  • Plant Production & Protection
  • Animal Production & Protection
  • Urban Agriculture
  • Waste Management
  • Water Quality & Quantity
  • Food Safety, Quality, and Production
  • Natural Resources and Forestry
  • Agrosecurity
• 4-H/Youth Development - 27 percent of CES Budget
  • Leadership
  • Youth, Agricultural and Environmental Education
  • Youth Wellness and Consumer Education
  • Life Skills Development
• Family & Consumer Sciences - 8 percent of CES Budget
  • Nutrition and Health
  • Child, Youth, and Family Development
  • Consumer Economics and Financial Management
  • Food Safety
  • Housing and the Environment

Subprogram Infrastructure: County operations, 4-H Camps, Research & Education Centers, Analytical Services, County Support.

Agricultural Experiment Stations (Research Programs)

• Plants - 62 percent of AES Budget
  • Agriculture and Silviculture - Production Systems
  • Pest Management/Plant Protection
  • Genetics and Breeding
  • Water Management
  • Food Quality, Safety, and Processing
  • Marketing/Finance/Policy/Economic Development
  • Plant Nutrition/Soil Fertility
  • Basic Science
• Animals - 24 percent of AES Budget
  • Production Systems
  • Food Quality, Safety, and Processing
  • Genetics and Breeding
  • Basic Science
  • Marketing/Finance/Policy/Economic Development
  • Waste Management
  • Human Nutrition
• Environment - 14 percent of AES Budget
  • Natural Resources and Forestry
  • Basic Sciences
  • Renewable Energy

Subprogram Infrastructure: Research & Education Centers, Support Units and Administration.

Recent Budget History

The budgetary challenges that we face today result from:

• Steady erosion in buying power since 1991,
• Growing personal services costs with fixed operating budgets, and
• Inadequately funded Maintenance and Operations (M&O) and unfunded benefits.

About our People

People are the College's greatest asset and represent a very large part of the budget. Hence, budget losses are mirrored in lost positions:

Personnel Category	Fiscal Year			Positions Lost Since FY'02
	'91	'02	'04
AES
Faculty	222	202	174	28	(14%)
Staff	739	680	598	82	(12%)
Total	961	882	772	110	(12%)
CES
County Agents	504	391	312	79	(20%)
Specialist	226	146	111	35	(24%)
Total	730	537	423	114	(21%)

Coming after more than 10 years of fixed programmatic operating funding, rising operating costs, rising M&O costs, and unfunded benefits, recent budget cuts have been paid by returning vacant positions. Now, with few remaining vacant positions, mid-FY'04 and FY'05 budget cuts will result in large reductions in CES and AES personnel.

Since FY'02 the CAES has reduced resources, including personnel, devoted to lower priority programs in favor of maintaining high priority research and extension programs. Several research and extension programs have already been eliminated: swine & aquaculture research -Tifton: dairy research - Athens; research at the Bamboo Farm and Coastal Gardens; research & extension operations at the Southeast Georgia Research and Education Center - Midville; research at the Blueberry & Vegetable Processing Lab in Alma; canola breeding - Griffin.

More About the Request

Cooperative Extension Service Retiree Benefits

The Cooperative Extension Service is the only organization in the University of Georgia that has to pay the employer costs for its retiree benefits from its budget. This is historical and dates back to when the CES was a separate agency. However, the CES is part of the university now and should be treated the same. In recent years, the number of retirees has grown and the benefit costs have substantially increased. In FY'91 the benefit costs for retirees was $681,335 ($628,170 for health insurance and $53,165 for life insurance) or 1.97 percent of our net state appropriations. In FY'03 the benefit costs totaled $3,327,977, which represents 8.98 percent of our net state appropriations. This includes a cost of $2,966,205 for health insurance and $361,772 for life insurance. We request to be treated the same as other organizations in the university and request that the retiree benefit funding and costs be assumed by the university. Freeing up this liability from our budget will prevent continued and future adverse impacts on our programs.

Maintenance and Operating (M&O)

Inadequate M&O funding has been a serious issue for the AES and CES for many years. In fact, no M&O funding occurred until FY'97. During 1997, via a Joint Study Committee of the General Assembly, funding was recommended for both AES and CES. The total M&O requirement for the College, in today's dollars, is $11.3 million, of which 58 percent has not been funded. In FY'05 an additional $859,842 for AES and $722,873 for CES is desperately needed to maintain and operate more than 3 million square feet (approximately 20% of the UGA inventory).

Annualization of FY'03 Salary Increases/ORP and Health Insurance - $514,345 for AES and $857,318 for CES

These funds were obligated during FY'03 for the FY'04 budget but were not funded. These funds are needed to fund recurring salary, retirement, and health insurance costs for employees. Without funding further reductions in personnel will be required.

Capital Projects

Funding ($5 million) is requested to construct/renovate facilities to support animal research, teaching and extension programs in Athens. Swine, equine, dairy, and beef cattle facilities are antiquated and failing. Funding is also requested ($8.6 million) to build a main dining hall at the Rock Eagle 4-H facility, which serves more than 70,000 people each year. Serving more than 350,000 meals each year in a substandard facility with electrical, plumbing, and life safety deficiencies is seriously compromising the function and safety of the facility.

The Georgia Agricultural Experiment Stations and the Cooperative Extension Service support the agricultural economy of Georgia, enhance the natural environment and promote the health and household well-being of Georgia's residents. Through research, service and education, the University of Georgia's College of Agricultural and Environmental Sciences, College of Family and Consumer Sciences and Daniel B. Warnell School of Forest Resources improve the quality of life.

Critical Needs and Budgetary Requests FY'05

1. Adjustments to Base

• Annualization of FY'03 Salary Adjustments, Optional Retirement Plan and increases in health insurance costs (committed but not funded): $514,345 for AES and $857,318 for CES. We were not allowed to request these items in our Prioritized Program Budget (PPB) but were informed that the Board of Regents included the increased health insurance needs in its FY'05 budget request.

2. 2% Enhancement

• Increase funding for Maintenance and Operations to bring AES and CES in line with "A" budget appropriations: $859,842 for AES and $722,873 for CES. CES funding includes $493,203 for the new expansion of the Rural Development Center in Tifton, which will come "online" in FY'05.

3. Special Requests

• Extension Service Retiree Benefit Costs - The Extension Service is required to pay for its retirees' benefit costs from its own budget. No other organization in the University of Georgia is required to pay these costs from their operating budget. $3.3M (9 percent of net state appropriations) is currently devoted to retiree benefits. To achieve equity with all other budgetary units in the University, we request that the retiree benefit costs be transferred to the University.
• A one-time request for special funding of $5M to build and renovate mission-critical facilities for teaching, research and extension in Animal and Dairy Science programs in Athens. The beef and swine facilities are beyond repair. Dairy facilities for teaching need major renovation or replacement. Additional land near the current dairy has been purchased and will allow the relocation of swine from both the Athens main campus and Tifton. The teaching dairy and swine for teaching and research will be consolidated at one facility.
• $8.6M to replace the Dining Hall at Rock Eagle 4-H Camp. The dining hall does not comply with current safety codes and is critically needed to support Georgia's flagship 4-H camp.

Impacts of Programs

The scientists and the county agents and their support staffs have made significant contributions to agriculture, forestry, families and youth and the total economy of the state. Here are just a few examples:

• UGA scientists continue to provide superior germplasm to maintain the $38.7 billion agricultural industry in Georgia. Valuable varieties of peanuts, wheat, soybean, turf, forages and blueberries have been released.
• Development of controlled atmospheric storage has allowed the Vidalia Onion industry to grow from a $9M per year crop to a crop valued at over $80M per year.
• Ventilation systems developed by UGA have been directly responsible for the expansion of the poultry industry in to south Georgia.
• The Center for Food Safety works with most of the major food processing companies in Georgia and throughout the nation to improve procedures for detecting and eliminating food-borne pathogens.
• The Stripling Irrigation Research Park is now in its second year of operation, evaluating alternative irrigation management systems designed to enhance water efficiency.
• Pioneering internationally recognized research in animal cloning and genetic engineering is being conducted. Associated stem cell research has important implications in the development of cures or treatments for Parkinson's and Alzheimer's diseases.
• The Center for Argibusiness and Economic Development and the Center for Forest Business critically assess potential of new enterprises for Georgia.
• The Cooperative Extension Service has recently trained all poultry growers on the development of nutrient management plans and poultry house ventilation systems.
• Foresters work with county agents, private landowners, industrial forest managers, and local, state and federal agencies to develop land-use and forest management options.
• Independent research-based soil, water and plant tissue analyses have been provided.
• The cotton team of research and extension specialists continues to play a vital role in increasing the efficiency of cotton production.
• The educational leadership program, through 4-H, guides 170,000 Georgia youth annually into adult leadership roles.
• Basic information on diabetes and obesity, with emphasis on prevention, has been provided to families throughout the state.
• Educational programs addressing nutrition-related diseases of diabetes and cardiovascular health improved diet and fitness activities among Georgia residents.
• Family and Consumer Sciences Extension provided more than 47,900 hours of research-based child development education to more than 16,400 child-care providers to strengthen this $1 billion industry.
• County agents are training county and city government workers in leadership, food safety, pesticide safety and waste management.
• During the last decade, grants and contracts have increased from $14M to $26M, now comprising one-third of the total Agricultural Experiment Stations' budget.

Strategic Program Adjustments

Through strategic planning, the Agricultural Experiment Stations and the Cooperative Extension Service have initiated several programmatic adjustments to better utilize available resources and improve efficiency.

• The aquaculture research program in Tifton has been terminated.
• Research and extension programs at the Southeast Research and Education Center in Midville are being phased out.
• The swine research program in Tifton has been eliminated and consolidated in Athens.
• Operation of the research dairy has ceased in Athens and has been consolidated in Tifton.
• Activities at the Blueberry and Vegetable Processing Facility in Alma have been terminated.
• The canola breeding program in Griffin has been eliminated.
• One Extension District Office was eliminated to reduce administrative costs.
• Other unit and program closures and program reductions are currently being evaluated.

Budget Facts and Figures 2002-2004

1. Experiment Station budget decreased by $5,650,985 (11.7 percent). Reduced or eliminated were:

• Animal programs including poultry, dairy, beef, swine and aquaculture (9 faculty, 20 staff).
• Plant programs in cotton, small grains, greenhouse production, and plant protection (11 faculty, 25 staff).
• Environmental programs in pesticide chemistry, irrigation engineering, environmental soil science and waste management (4 faculty and 3 staff).

2. Extension Service budget decreased by $4,981,099 (12.3 percent). Reduced or eliminated were:

• Seventy-nine county agents were lost: 37 agriculture, 23 4-H, and 19 family and consumer sciences.
• Animal programs in poultry, dairy, beef, and swine (7 faculty and 7 staff).
• Plant programs in cotton, peanuts, ornamentals, turf, apples, grapes and plant protection (9 faculty and 9 staff).
• Environmental programs in fire ant control, irrigation engineering, environmental soil science and water quality management (4 faculty and 3 staff).
• One staff in Forestry - Aquaculture and Fisheries.
• One faculty in Family and Consumer Sciences - Program Coordinator.

FY'05 Budget Request

Agricultural Experiment Stations:
Adjustments to Base	$514,345
2% Enhancement	$859,842
Special Requests:
Animal Facilities	$5,000,000
Total Requests:	$6,374,187
Cooperative Extension Service:
Adjustments to Base	$857,318
2% Enhancement	$722,873
Special Requests:
Dining Hall Renovation	$8,600,000
Transfer Retiree Benefit Costs to University	$0
Total Requests:	$10,180,191