Busy preparing for a possible hefty cut in higher education state funding next year, University system administrators are drafting budget scenarios and pouring over the fiscal details of its 11 institutions. Last week, the Governor’s Office told colleges to prepare for an up to 30 percent cut in funding next year. LSU System President John Lombardi said the Board of Regents office advised him to prepare for cuts between 14.7 percent and 26.6 percent, on top of the previously approved 4.6 percent mid-year reduction. Lombardi said the System is working with department leaders and faculty to compile two budget reduction plans — one if the budget is cut by about 20 percent and the other if the budget is cut by about 30 percent. The scenarios — highlighting how each department on all system campuses would deal with the cuts — should be completed next week and will be submitted to the Board of Regents. “What we don’t know [yet] is the actual budget challenge,” Lombardi said. The 2009-2010 fiscal year budget won’t be known until later this spring. Until then, all University officials can do is prepare for up to $175 million in cuts for the LSU System as a whole, including up to $71 million in cuts at LSU’s main campus, said System spokesman Charles Zewe. Lombardi said if the budget cuts are large enough, layoffs are possible. An article published in The Chronicle of Higher Education outlined how several governors in the U.S. are addressing cuts for colleges and universities. Gov. Bobby Jindal, whose administration ordered a $55 million mid-year reduction for higher education, told colleges to prepare for possible cuts between $212 million and $382 million next year. The Jindal administration is predicting a $2 billion shortfall for the 2009-2010 fiscal year beginning July 1. There was a $341 million shortfall during this fiscal year, prompting the mid-year cut back. Idaho Gov. C.L. “Butch” Otter has submitted a budget that cuts higher education by 10 percent, or about $9 million, according to The Chronicle. Gov. Jim Gibbons of Nevada proposed a 36 percent cut for higher education. Nearly 75 percent of the $633 million Gibbons is suggesting be cut from the state’s budget would come directly from the university system, The Chronicle reported.Other universities are finding ways to dodge higher education budget cuts. Going into the 2009-2010 fiscal year, Missouri Gov. Jay Nixon is planning to maintain the same level of state aid higher education received during the 2008-2009 fiscal year on the condition universities not increase tuition or student fees. Missouri had a budget deficit of about $342 million this year and is expecting a nearly $1 billion shortfall in 2010, according to The Chronicle. Maryland Gov. Martin O’Malley is also planning on maintaining the same level of state funds for higher education going into the 2009-2010 fiscal year, despite the state looking at a nearly $2 billion shortfall next year, The Chronicle reported.One governor is even planning to increase higher education funds by 20 percent next year. Vermont Gov. Jim Douglas also wants the University of Vermont and Vermont State Colleges to merge the two administrations of their systems for efficiency, according to The Chronicle. Lombardi said Louisiana’s state Constitution leaves higher education and health care the most likely to receive the majority of budget cuts because other areas of the budget are protected.Gov. Jindal told The Advocate on Tuesday that changes to the Constitution must be made this year. Jindal said it was “wrong” the Constitution leaves higher education and health care the most vulnerable to cuts. Lombardi said President Barack Obama’s $819 billion stimulus package, approved Wednesday by the House of Representatives, would reduce the pressure on higher education systems across the state. Louisiana would receive more than $5 billion in aid. The stimulus package is pending Senate approval.—-Contact Kyle Bove at [email protected]
Administrators drafting budget scenarios
January 30, 2009