Higher education in Louisiana will be cut around $66 million from last year’s budget, despite a legislative resolution allowing the use of $204.7 million in “rainy day” funds to cover gaps in the state’s $25.6 billion budget.
Of that $66 million, about $28 million affects the LSU System, with slightly less than $19 million specifically cut from the University.
That reduction is offset by $24 million in self-generated funds – nearly 9 percent more than last year – bringing the total operating budget of the University to $446.4 million, up from last year’s by about $5 million.
But that isn’t cause for celebration.
The University uses a number called Direct Student Impact (DSI) to show, in dollars, the effect of budget actions on a student’s experience.
While the operating budget has increased, the DSI for fiscal year 2013 – beginning July 1 – is down $34.1 million.
Eric Monday, Vice Chancellor and CFO, said this decrease is due to non-recurring funds used in last year’s budget and other expenditures.
“None of that is good,” Interim LSU System President William Jenkins said. “As these budget reductions occur, they’re harder and harder to deal with because the state’s economy has been in a slump for a while, state general fund availability has been reduced and there are only certain areas of the state budget that can be cut.”
In addition to the forecasted cuts for FY 2013, there is still a $10.6 million cut to the LSU System that must be settled by June 30.
Faculty Senate President Kevin Cope said these cuts don’t only affect the University.
“It’s estimated for every dollar that flows through the University, that’s about $10 in the local economy,” Cope said. “So say they end up yanking $10 million out of the budget, maybe $100 million will go out of the economy in this area. That’s going to put a lot of people out of business, which means fewer taxes paid, and the situation will only get worse – the classic downward spiral.”
Cope also criticized Governor Bobby Jindal’s insistence on no new taxes and said a half-of-a-cent tax on natural gas would “probably wipe out the deficit and the lack of money in higher education.”
“If [Jindal] did that, he would do a great service for his people at absolutely minimal cost to people in Louisiana,” Cope said. “But he’s running for national office, so he’s willing to take the people hostage.”
Another issue that makes reducing cuts difficult are the mid-year cuts issued in recent years. Associate Vice Chancellor Bob Kuhn said it’s difficult to plan for the year when funding promised at the beginning of the fiscal year is cut.
One way to combat these cuts is increasing tuition, which the University has done. But according to Jenkins, that reaches a level of diminishing returns, at which point students can no longer afford to attend college.
Provost Jack Hamilton said increasing tuition should improve education, not “replace general appropriations money.” Jenkins acknowledged he’s concerned for the future of the University.
“I think we’ve now reached the brink of being able to deal with this,” Jenkins said. “Another series of cuts like this would have very serious consequences.”
But there are ways students can combat these cuts. Jenkins suggested students begin talking about their financial situation.
“When classes resume in the fall, start having some seminars with students and go over these financial predicaments,” he said. “There’s no secret in the numbers.”
Hamilton said calls to legislators can be very meaningful and urged students to contact them.
“I am surprised students are paying more but not complaining,” he said.
 
____ Contact Taylor Balkom at [email protected]