Representatives from state universities presented next year’s proposed budget for higher education Tuesday at the House Appropriations Committee meeting.
State representatives and education leaders discussed the effects of cuts that were made the state budgets in November in the wake of hurricanes Katrina and Rita, increases of University fees and tuition and the possibility of a 5 percent pay increase for state faculty.
The budget is part of a proposed fiscal plan presented by Gov. Kathleen Blanco that would increase funding for higher education by $17 million.
Included in the increase is $31 million for a 5 percent faculty pay increase.
At the meeting LSU System President William Jenkins told representatives that the 5 percent pay increase is a high priority at all LSU System campuses.
Bill Silvia, LSU System senior executive vice president for administration and finance, said each university listed pay raises as a top priority when formulating suggestions for the budget.
Most of the budget increases at the various campuses are to fund annual necessary costs which include group insurance and merit increases.
There were no other additions to the state funding for LSU System institutions.
Rep. Don Cazayoux, D-New Roads, asked Jenkins if the budget was at a “standstill” and what effect the budget would have on the Flagship Agenda.
“[The budget] is a source of immediate relief,” Jenkins said. “We’re still very fragile.”
Silvia added that not moving forward and funding the Flagship Agenda could keep the University from achieving its goals.
“Even if we stand still in the executive budget, our competitors keep moving,” Silvia added.
In addition to adjusting budgets at various institutions in response to the effects of hurricanes Katrina and Rita, the proposed budget allocates $10 million to be distributed by the Board of Regents.
The $10 million would be used if an institution has a higher enrollment then projected when the budget was created.
The budgets for the University of New Orleans and Southern University New Orleans are lower than this past year because enrollment is expected to be lower.
If enrollment is higher then projected, the institutions would qualify for the money.
Several members of the Appropriations Committee asked about other proposed legislation that would increase attendance prices at the Flagship campus.
Jenkins responded that there has been a proposed operation fee and another proposal to create a system that would increase tuition at LSU over an extended period of time.
O’Keefe said the proposed $150-per-semester operation fee would cover cuts made to the budget last year.
O’Keefe said the fee would generate about $5.5 million annually.
During the meeting Rep. Charles McDonald, D-Bastrop, expressed concern about creating additional fees.
“With the condition the state’s in, we ought be very cautious,” McDonald said.
O’Keefe said he did not expect members to be happy about the proposed increases.
“I would not have expected, nor did we anticipate enthusiasm,” O’Keefe said. “[Increases] are what it will take. It’s one thing to maintain a flagship institution; that’s going to cost us.”
O’Keefe also said because utility prices were not as high as expected, some of utility fee levied in January will be credited to students by the end of the semester.
Rep. Tom McVea, R-Jackson, expressed concern about the amount of money designated for the LSU AgCenter.
The AgCenter is budgeted to receive $1.5 million less than last year, a 2.09 percent decrease.
McVea told representatives from the LSU System he had seen cuts in the AgCenter’s budget for the past few years and is concerned money is unfairly being taken from an entity he called important to rural Louisiana.
“The LSU AgCenter always winds up at the bottom,” McVea said. “Is it not as important as other aspects of LSU?”
Jenkins said the AgCenter does not collect tuition and relies mainly on state and federal funds.
AgCenter Chancellor Bill Richardson said the center is working to reorganize and accommodate agriculture across the state on a limited budget.
 
Contact Ginger Gibson at [email protected]