State support for Tech is substantial but declining.

Georgia state Rep. Richard Royal told Georgia Tech Legislative Network members that the state's budget will get tighter this fiscal year and in 2005.

Royal, IE 62, who spoke at the network's annual meeting in November, said fiscal year 2004 has been "a tough year" for the state because of declining tax revenues and that the outlook is the same for 2005.

"Most of Georgia's revenues come from state taxes on income for corporations and individuals and from sales taxes," Royal said. "Although the economy appears to be doing slightly better as collections from taxes on individuals and sales taxes are up, corporate tax collections are down, indicating that profits are still depressed."

Georgia Gov. Sonny Perdue earlier announced that the current year's budget will be reduced by an additional 2.5 percent and that the budget for fiscal year 2005, which begins July 1, will be reduced by another 5 percent.

Royal, chairman of the House Ways and Means Committee, advised Legislative Network members to be vigilant and let their legislators know Tech needs their support to continue its economic development impetus.

The Legislative Network is a volunteer alumni group designed to educate and inform state legislators about Tech's programs and needs.

President Wayne Clough said state support for Tech is substantial, but is declining as a percentage of the Institute's financial picture.

"We're receiving today the same financial support we received in 1999, even though we have 1,800 more students and we're doing $100 million more in research," Clough said.

Tech is leveraging state funding through the Economic Development Institute, which aided more than 1,600 companies in 2002; the Advanced Technology Development Center, Tech's incubator for new technology companies with 44 in its program; and the newly dedicated Georgia Tech Regional Engineering Program in Savannah, attended by more than 400 students.

"We've minimized the impact of state budget reductions on the academic mission of Georgia Tech by directing most of the reductions to the administrative and support areas of Georgia Tech," Clough said, but so far Tech's funding reductions from the state exceed $28 million.

Clough said the state has done much to help Tech despite the difficult economy — citing the placement of the state's Nanotechnology Research Center at Tech and the $45 million in state support Perdue has pledged to match a $36 million gift to Tech from an anonymous donor.

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