If the Louisiana legislature passes two pieces of pending legislation, the price for University students to attend LSU may increase.
Last week, the House Education Committee voted to put a bill before the House that would let state colleges and universities add $60 per semester to student fees.
Also, the committee voted to approve a bill extending the universities’ authority to raise tuition 3 percent annually. Under current legislation, institutions are authorized to increase tuition 3 percent until July 1, 2005. In the current proposal, that cutoff would be extended to July 1, 2008.
State Commissioner of Higher Education Joseph Savoie said it is important to understand the distinction between the two increases.
“Student fees are aimed at specific improvement of academic services,” Savoie said.
He said these services include general campus improvement projects such as library acquisitions and new construction, and the proposed $60 student fee increase will not contribute to general operating expenses.
In contrast, the annual 3 percent increase in tuition is used to account for increased operating expenses and inflation.
As of now, higher education will receive a $40 million cut in the next fiscal year because of mandatory increases in salaries, retirement and health care benefits, Savoie said.
“Three percent tuition increases raises roughly $14 million,” Savoie said. “The 3 percent is not adequate if you have these kinds of shortfalls.”
He said next year’s higher education budget is a “standstill budget.”
“The money the state will appropriate to the colleges and universities will be the same as last year,” Savoie said.
As a result, inflation combined with the mandatory increases in operating expenses cause the expected $40 million worth of cuts.
“All of our universities are anticipating a budget shortfall this year,” said Kevin Hardy, communications director for the Board of Regents. “We’re hopeful that several things could happen that could alleviate that shortfall.”
Savoie said he hopes the legislature could move to increase appropriations for higher education sometime during the current legislative session — thus helping to alleviate the $40 million in anticipated cuts and possibly eliminating the need for the student fee increase.
In that case, the 3 percent increase could be used as it was intended — to combat the effects of inflation.
Savoie said the TOPS program would cover the 3 percent tuition increase but not the proposed $60 student fee increase.
Both pieces of legislation will need to pass both the Louisiana House of Representatives and Senate for the increases to take effect.
Savoie said a House vote on extending institutions’ ability to raise tuition 3 percent may come sometime next week. He said the student fee legislation may be delayed until the state decides whether higher education will receive additional appropriations.