Portions of some University employees’ salaries could be used to fill the budget gap, according to Gov. Bobby Jindal’s budget plan.
The governor’s budget proposal calls for state employees participating in LASERS — Louisiana State Employee Retirement System — to increase their contribution in the next fiscal year.
The governor presented his plans for bridging the $1.6 billion budget gap to the Legislature last week.
Jindal’s proposal would see state employees’ contribution to the retirement system increase by 3 percent in the next fiscal year.
The governor’s office claims the increase could free $24 million in general fund revenue that would have been used to cover increased costs to state employee retirement.
Legislation for the proposal has not yet been filed. It is unclear how the funding would be substituted in the budget if the bill were to fail. University administrators say it could possibly lead to cuts to higher education.
Most civil service employees and staff members at the University participate in LASERS, while teaching faculty have different plans. Hazardous duty employees in LASERS are exempt from the proposal.
Jindal’s proposal calls for keeping the employer’s contribution at “similar levels” to fiscal year 2011, but it is unclear if the University’s contribution to the LASERS retirement program would change.
“This is a pay cut that is designed to cover the cost of promises made by previous politicians,” said Faculty Senate President Kevin Cope.
Cope has been pushing for a solution to problems with retirement programs available to faculty and staff.
Cope’s contention lies in the growing number of retirement dollars going to the system’s unfunded accrued liability, while the amount reaching University employees is shrinking.
“This [proposal] does nothing to fix the fundamental problems with retirement,” Cope said.
 
—-
Contact Xerxes A. Wilson at [email protected]