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Friday, July 23, 2010 - 10:13am

State Agencies Slash 4 Percent

Governor Sonny Perdue has ordered state agencies cut 4 percent from their budgets in case an extension of Medicaid funds doesn’t pass Congress.

Georgia created its budget depending on $375 million of the money, but conservatives in the U.S. Senate won’t approve it if it raises the national debt.

The reductions affect all departments except K-12 public schools for now.

Every agency is also required to submit plans with 4, 6 and 8 percent reductions for the rest of the year, including the Department of Education—though its plan will reflect a 2 percent cut.

John Millsaps with the Board of Regents says they’ll know how the cuts will affect higher education next month.

"The board will meet August 10 and 11. At that point we’ll have some more definitive ideas about what we’ll be doing moving forward," says Millsaps.

In the past, the University System of Georgia has raised student fees and furloughed workers to make up for cuts.

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