Gov. Bobby Jindal outlined Thursday what he called a “leaner and smarter” state budget, which he said will put a high priority on higher education in the state.
Jindal said there will be “absolutely no reduction” in three main areas of funding for higher education — state, federal and self-generated funds — between fiscal years 2010-11 and 2011-12. He said the difference does not include increases in TOPS or hospital funding.
“I want to make it very clear for colleges: When I say the funding is the same in ’11 and ’12, it is the same,” Jindal said.
Jindal said to replace the loss of federal stimulus funds, the state will increase general state fund dollars for higher education by $105 million.
He also said the state incorporated an estimated $90 million that should be generated from the passing of the LA GRAD Act, which allows universities in the state to raise tuition by 10 percent annually if they meet certain performance criteria. Jindal also proposed that the state should use $98 million in one-time statutory dedications toward higher education.
Jindal emphasized that funds for higher education could increase by about another $98 million to $100 million if legislation he previously proposed passes.
Those proposals include reducing statutory dedications, consolidating higher education boards and possible tuition and fee increases.
Jindal highlighted five main points in his fiscal year 2011-12 budget proposal. One of Jindal’s minor points, however, was his proposals for TOPS, which includes an additional $39.9 million from the state for the program, plus $92 million from a proposed constitutional amendment. Jindal said the proposed total funds for TOPS would reach $174.5 million.
“The necessary increases are included in case the Legislature passes our proposals to give colleges more flexibility over their tuition,” Jindal said. “This $39.9 million increase would cover the additional cost of TOPS. So TOPS would be fully funded, even if they approve the proposals we have offered to give the colleges more flexibility.”
Jindal only outlined his proposed budget Thursday. The budget will be presented today to the Joint Legislative Committee on the Budget.
Jindal’s five main points outlined include: taxes won’t be raised, and Jindal will veto any attempt to do so; higher education will receive more protection; K-12 education will receive more protection; there are no major proposals to cut health care funding; and the budget will feature a reduction in one-time funds.
Jindal said the overall budget will come in around $24.9 billion, or $1.1 billion less — 4.3 percent — than fiscal year 2010-11. The $1.1 billion figure falls short of Louisiana’s estimated budget shortfall for 2011-12, which is almost $1.6 billion.
Jindal’s proposed budget also includes what he claims is “substantially fewer” one-time dollars. He said his proposed budget will use $474 million in one-time revenues for recurring expenses, but if one subtracts $57 million of recurring revenues used for one-time expenses from that amount, the net difference is $417 million.
“In other words, that’s a net of $417 million of one-time revenues for recurring expenditures,” Jindal said.
Jindal said the one-time funding totals were roughly $800 million in fiscal year ’08 and more than $1 billion less than the current fiscal year budget, most of which is gone because of the loss of federal stimulus dollars.
“We think this is a fiscally responsible path to reducing the reliance on one-time money while at the same time protecting higher ed and health care,” Jindal said.
Jindal re-emphasized that he wants to sell three state prisons, but he also mentioned two prisons — Dabadie Correctional Center and Avoyelles Correctional Center — that he wants to downsize and convert into privately operated facilities.
For health care, Jindal said his proposed budget includes no cuts in Medicaid provider rates, no reductions in eligibility and no elimination of services.
“We’re proposing a balanced budget that tightens our belt,” Jindal said. “We’re doing more with less. There will be more efficiencies.”
 
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Contact Robert Stewart at [email protected]