Financial aid has seen University students through four tuition increases since 2000, including this year’s 5 percent increase. But with the state of the financial market, University officials are worried funds may be affected in the future. Mary Parker, executive director of Undergraduate Admissions and Student Aid, said financial aid, largely provided through operational cash the University has on hand, will be safe from dangerous fluctuations at least through the spring.But Parker said there is a concern about future effects of the economy on LSU Foundation accounts, which depend on returns generated from the investment of private donations.”There is certainly a concern on all of our parts as to what the earnings will be,” she said.Parker controls the distribution of many undergraduate awards paid for through the University’s operational cash as well as 85 awards funded by returns earned on foundation accounts.Parker said she distributes every dollar she is allotted for student aid.”It’s been staying pretty steady, maybe increasing a little,” she said of the funds available for student awards.The University doled out $161,909,989 in undergraduate financial aid — including loans and grants — for the 2006-07 year. The total also included federal and state awards.Robert Kuhn, vice provost for Fiscal Management and associate vice chancellor for Finance and Administrative Services, said not only is the University concerned about declines in private donations, returns on invested private funds and returns on tuition payments — but Louisiana may also be tightening its state budget in the next year.The University consumed more than 36 percent of the funds available to Louisiana schools through TOPS with $42.4 million, according to a November TOPS payment summary for the 2007-08 year. “With the markets down, people may be more concerned about making contributions,” Kuhn said. “People who have that philanthropic drive … are going to give anyway.” On a year-to-year basis, Kuhn said the money available in the University’s operational budget has been increasing. During this academic year, he said the University’s operational budget, which is used for day-to-day costs, was about $451 million.”Every college is concerned about the status of the markets … endowment growth is very important to the long-term funding of the University,” said Scott Madere, LSU Foundation public relations director. Madere said long-term funding is the University’s focus, and financial markets generally trend upward.”Are we worried about it? Sure, short term,” he said. The endowment fund, made up of donations marked for investment and the returns generated by the investment of those funds, lost $20 million between fiscal years 2006-07 and 2007-08. The drop was the first time the endowment decreased between fiscal years in at least nine years. Funds for financial aid make up part of that endowment.But total assets in the foundation have been steadily increasing and are now at $511 million.”The University is going to do everything it can to make sure those scholarships and fellowships are maintained or even increased,” Kuhn said. “I will probably be fired before we cut scholarships.” Parker said the projection of the University’s financial future used for budgeting financial aid will be available later this month. —-Contact Sarah Lawson at [email protected]