The Office of Budget and Planning has just completed theoperating budget request for the 2005-2006 academic year, whichwill be submitted to the Board of Supervisors for its firstapproval.
The Louisiana government controls 54.8 percent of theUniversity’s 2004-05 budget of $345 million, which is anunrestricted operating budget, said Tommy Smith, associate directorof the Office of Budget and Planning.
Of the $345 million, 39.7 percent came from tuition and fees and5.5 percent came from other sources, such as alumni donations andfundraisers.
“The state has a great deal of impact on our budget,” saidProvost Risa Palm. “We follow state guidelines and we need thestate’s permission to make expenditures.”
Through House bill No. 1, the state appropriates two types offunds for the University.
Some of these funds come out of general state funds and othersare self-generated from tuition and fees from students, said BobKuhn, associate vice chancellor of the Office of Budget andPlanning.
“The legislature establishes spending limits and the Universitymust spend that amount,” Kuhn said. “The University has never goneover its appropriated spending limit.”
Palm said her office works with the Board of Supervisors and theBoard of Regents when examining and approving the budget.
“We do not have autonomy,” Palm said.
The unrestricted operating budget does not include restrictedfunds, grants or contracts.
The remaining funds in the University’s budget areself-generated from the University’s tuition, fees and interestincome.
“The operating budget is appropriated from the legislature tous,” Smith said.
The Louisiana Legislature must grant the University the budgetauthority to bring funds into the University, Smith said.
If there is an increase in the University’s expenditures duringthe academic year, the budget changes must be submitted to thelegislature for approval, but only if the University will exceedthe limit of funds first appropriated, Kuhn said.
Unless the state grants the University the budget authority todo otherwise, the University must send extra funds not spent backto the state, Smith said.
Most of the University’s funds are in a large pot, not separatedor put in categories, Smith said. However, there are someexceptions.
“For example, the state could give us funds for desegregationcases, or the lab school or the fireman training program,” Smithsaid. “But most of the money is all together.”
The University is responsible for reporting to the legislaturehow much money they spent and for what.
The object of the University’s current operating budget requestis to tell the state how much money will be required to continue atthe current level of progress, Smith said.
If the Board of Supervisors and the Board of Regents approve thebudget request, which is due Nov. 1, it is submitted to thelegislature with a request for 100 percent of formula funding.
The legislature tweaks the budget until it is satisfied enoughto approve it, Smith said.
The budget goes to committees and then the full House. If theHouse approves it, the budget goes to the Senate for approval aswell, Smith said.
After the Senate approves, the budget goes back to the House. Ifthe Senate does not approve, the budget goes to a committee ofHouse members for tweaking, Smith said.
Once the committee is satisfied, the budget returns to the Houseand the governor signs it, Smith said.
While the state has control over many aspects of theUniversity’s spending, they leave many responsibilities to theUniversity’s discretion, as long as decisions are made according toall state laws, Kuhn said.
“For instance, they don’t tell us how many faculty to hire, andthey don’t tell us who,” Kuhn said. “But we are still accountableto them and we must report how much we spend and on what.”