“We squeezed our way through with no program closures,” said Interim System President Chancellor and William “Bill” Jenkins.
The legislature dropped its funding for the University by 13.1 percent for the 2011-12 year. Coupled with other yearly reductions, the University faced a $33.5 million budget shortfall, according to the Office of Budget and Planning.
To compensate for the hole, the University announced in July a 10 percent tuition increase for in-state residents and a 15 percent increase for out-of-state residents. The University has the authority to raise tuition at these levels because of its graduation rates and other academic performance standards it has met through the LA Grad Act.
These increases — along with an estimated enrollment of 200 more students than last year are expected to generate $10.9 million. Official enrollment numbers will not be ready until September 12, so administrators are hedging their bets on using increased tuition money to fill budget holes.
LSU Athletics donated $5.5 million to the academic side of the University in July— $4 million of which was intended to protect the University’s academic core and a $1.5 million permanent contribution to fund the Cox Academic Center for Student Athletes. This support, combined with other one-time adjustments, makes up for $9.6 million of the University’s total $19.9 million budget cut.
The Office of Budget and Planning pinned the University at a $13 million budget shortfall and $1.7 million will be cut from the academic core, manifesting itself mostly in the LSU School of Veterinary Medicine.
An additional $11.3 million will be cut from Facility Services, tuition and fee exemption programs and student-athlete support. Student-athlete support will fall under LSU Athletics.
No layoffs are expected from any of the cuts.
Jenkins said he still had worries, despite dodging any serious cuts, because University faculty members have not received raises in four years.
“My biggest concern is getting the faculty raises,” he said. “Research universities are known by success of students, alumni and faculty. We have to look after them.”
Executive Vice Chancellor and Provost Stuart Bell agreed with Jenkins’ concerns, saying the lack of faculty raises “is an issue we must address.”
Jenkins added that tuition increases cannot continue because “parents today are finding it difficult to afford education.”
Since 2008, the state has cut 43.6 percent from the University’s appropriations. In order to offset the cuts, the University has increased self-generated funds by $103.15 million, or more than 54 percent.
If the University had raised this much money without decreases in state funding, it would be flourishing rather than struggling to maintain its basic necessities, Jenkins said.
The University’s funding model has flip-flopped since 2008 when 58.1 percent of the budget came from state funds and 41.9 percent came from tuition and fees. Now, 66 percent of the University’s funding is derived from tuition and fees and 34 percent of it comes from the state, according to Jenkins.
