Members of the Board of Regents received anticipated higher education budget cut figures for the 2009-10 fiscal year on Wednesday, under which the LSU System would see a reduction in state funding of $102,087,705. Gov. Bobby Jindal’s proposed state spending budget has higher education taking a $219 million reduction, on top of the now permanent $55 million mid-year cut, to help make up for slacking state revenue. In distributing the $219 million reduction between the state’s four university systems, Regents staff “phased in” the much-talked about performance-based funding formula in combinationwith each system’s funding base required by the executive budget. “As we have analyzed the various reduction allocations, it is also clear that use of the new performance-based funding formula and its performance funding emphasis must be implemented even in this time of budget challenges,” Commissioner of Higher Education Sally Clausen told system presidents in letters sent on Wednesday. “We will adopt the new funding formula approach and pursue its desired outcomes as we move through this budget reduction process.” During a March 13 news conference, Jindal said he wants to see the cuts distributed based on performance. The performance-based funding formula has been in the works for nearly two years. The formula used to fund fiscal year 2008-09 is based mainly on enrollment while the new performance-based formula is based on an institution’s level of research, graduation rates and workforce development. “While not designed to be a budget-cutting tool, the phased-in approach for using the new formula will guide systems in making imaginative, specific, targeted, strategic and performance-based decisions when crafting their campus plans,” Clausen said in March 25 news release. When the Legislature approves a final state budget during the session that begins April 27, the Board of Regents will have the responsibility of distributing funds to each system. From there, system leaders will distribute the funds among their campus entities and make budget recommendations. The Legislature will make final appropriations. According to LSU System estimates calculated earlier this month, a $101 million cut to the System would result in about $45 million in cuts for LSU A&M in Baton Rouge. How the cuts will be distributed among systems and campuses won’t be finalized until the legislative session. The cuts to state funding for higher education are $219 million — or 15 percent of current state funding — only after including nearly $219 million in federal “stimulus” money. Without the federal money, spending could’ve been cut by more than $400 million. But the funds are only good for about two years, meaning higher education’s budget situation may be significantly worse come 2012. “The issues we face may extend out at least two, if not three years,” Clausen said. “Unless the economic conditions change for the better, higher education in Louisiana will be required to respond to a $440 million shortfall by 2012.” Higher education budgets will be presented to the House Appropriations Committee on April 21.—-Contact Kyle Bove at [email protected]