The Louisiana Board of Regents approved the fiscal year 2013-2014 operating budget at their monthly meeting Thursday.
Board members were presented with the operating budgets of all higher education institutions by the finance committee, amounting to $2.628 billion for fiscal year 13-14.
The University’s operating budget is $451 million, and 29 percent comes from state appropriated funds, compared with last year’s 58 percent state funding.
$124 million has been cut from state appropriations in the last five years, and consequently, this money has been made up with increased tuition and fee revenues.
Additionally, the budget states that the University has eliminated 247 faculty and 199 staff in the last five years. While faculty and staff were reduced, enrollment numbers have increased by 4.8 percent from 2008 to 2012.
In a news release, Commissioner of Higher Education Jim Purcell said the Board is still prioritizing spending this money efficiently.
“The system presidents have been extremely thoughtful about their budgetary plans,” Purcell said. “However, adequate funding for higher education must be addressed if we want our universities to truly grow.”
The Granting Resource and Autonomy for Diplomas Act will potentially increase University tuition autonomy, resulting in more revenue.
The GRAD Act allows the University to be independent in certain areas like risk management and facilities control, and with this autonomy comes increased savings and revenue.
It also gives administrations the authority to increase tuition as a reward for performance based on metrics and requirements in the act, according to Purcell’s budget presentation.
During the budget presentations Wednesday, LSU President F. King Alexander said tuition flexibility is the No. 1 issue in higher education.
Purcell said 87.8 percent of Southern Regional Education Board accredited schools charge per credit hour, suggesting a trend in that direction.