Gov. Bobby Jindal announced a $141.5 million proposed increase in higher education funding from state general funds Tuesday, standing alongside state legislators and leaders in the state’s higher education institutions at the Business Education Complex Rotunda.
This 6.6 percent increase in total higher education funds comes in stark contrast to the trend of budget cuts to the University and the rest of Louisiana’s higher education systems. Tuesday’s announcement also comes on the heels of speculation that the University wouldn’t see a midyear budget cut for the current year.
Since 2008, LSU has seen midyear budget cuts totaling more than $40 million.
Past midyear cuts have stagnated improvements at the University and made higher education more expensive for students. The midyear budget cut in 2010 cut short plans to reduce class sizes, increase classroom support and provide more counseling for students, the Reveille reported at the time. The Reveille also reported the University had to offset 2012 budget cuts with increases in tuition and fees.
Although the official budget won’t be released until Friday and would still need to be approved by the state legislature, Jindal provided some statistics on how the newly announced funding increase will be distributed. He said $6 million would be used to deal with the “equity issue” where some schools, because of their substantial growth, aren’t getting enough money.
Most of Jindal’s speech introduced and explained a new initiative called the Workforce and Innovation for a Stronger Economy (WISE) Plan to align higher education in Louisiana with workforce needs.
University President F. King Alexander said that the WISE Plan was the result of months of meetings with system leaders, the Louisiana Workforce Commission, the Board of Regents and the Office of Louisiana Economic Development.
Alexander said he and the rest of the plan collaborators had a “floor” for the WISE Plan consisting of two major concerns from the leaders of higher education in Louisiana, who sent a letter to Jindal on Thursday propositioning the plan.
He said they wanted the trend of budget cuts to cease and to allow state universities to keep tuition revenue for reinvestment within the universities themselves. Previously, if a University received increased revenue from increasing tuition or an influx of students, the state took the extra money.
The WISE Plan allots $40 million to state research institutions that “produce nationally recognized commercial research” and “partner with private industry to produce graduates with high demand degrees,” Jindal said.
Jindal said that these funds will be available to state institutions that get private companies to match 20 percent of the cost of programs in funds or the equivalent in research materials.
The rapid growth of Louisiana’s economy, especially in industrial sectors, has made apparent the lack of workers necessary for these skill-intensive jobs, Jindal said. He added that “Louisiana has become a victim of its own success” in that regard.
The integration of workforce demands with higher education has already begun, Jindal said. He cited the University’s commitment to tripling the amount of computer science degrees awarded over the next five years because of IBM’s planned Services Center in downtown Baton Rouge.
Student Government President John Woodard said he’s pleased with the announcement, calling the funding increases “much needed.” Woodard said that he is happy to see “positive momentum” with the state’s relationship to the University.
Stephen Moret, Secretary of the Office of Louisiana Economic Development, said the collaboration that produced the WISE Plan was “refreshing” and he hopes that spirit of cooperation will continue throughout the rest of the legislative session and into the future.
“Louisiana has become a victim of its own success.”

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Charles Champagne

Gov. Bobby Jindal joins leaders from the state's higher education systems to make an announcementabout funding for higher education in Baton Rouge Tuesday, January 21, 2014 at The E. J. Ourso College of Business