The University System of Georgia Board of Regents approved a $3.87 billion fiscal 2027 operating budget request Tuesday.

The 2027 budget, which takes effect next July, represents a $267.5 million increase over this year’s spending plan, or 7.4%.

The Governor’s Office of Planning and Budget (OPB) instructed state agencies last month not to ask for more money, citing the potential loss of federal funds. But the university system is being allowed to request increases in spending that reflect enrollment growth, an increase in square footage across system campuses, and higher health-insurance costs, Tracey Cook, the system’s chief fiscal officer, told the regents before Tuesday’s unanimous vote.

Most of the proposed increase – $216.5 million – would go to cover enrollment growth. About $11.9 million would provide startup costs for a new medical school at the University of Georgia due to enroll its first cohort of students next fall.

The regents also approved a $197.7 million capital budget request. The largest chunk of the funding – $83.1 million – would go toward two building projects.

Of that amount, $48.6 million would pay for new student support, engagement, and wellness facilities at Savannah State University. Another $34.5 million would be used to fund the fourth phase of a multi-year modernization of the Science and Ag Hill area of the University of Georgia campus in Athens.

“These projects have been vetted … and determined to be of the highest priority,” Cook said.

The operating and capital budget requests will head next to the OPB. Gov. Brian Kemp will present his spending recommendations to the General Assembly in January.

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