The LSU System Board of Supervisors expressed its desire to “support the flagship agenda” by approving an additional $7.9 million LSU System Flagship and Excellence Fund for the University on Friday.
The money, considered “one-time funds” for the University, comes from self-generated money and interest earnings, according to a System news release. The release also said a portion of the money will be in the legislature’s hands this spring as part of the Supplemental Appropriations Bill.
Kevin Cope, president of the University’s Faculty Senate, said the $7.9 million is good for the University, but is like putting a band-aid on the wound of the problem — a short-term fix.
Cope said the University needs to thank LSU System President John Lombardi and the Flagship Coalition, a group of business leaders and state citizens who support the University’s flagship agenda, especially at the legislative level, for their work to procure this money for the University.
The Board probed into state-wide budget challenges by looking into increased mandate costs and approving operating budgets for each university in the LSU System.
Wendy Simoneaux, Chief Financial Officer for the System, echoed Executive Vice Chancellor and Provost Jack Hamilton’s statements about the difficulty in gaining revenue by increasing tuition. For every dollar the University collects from tuition, Simoneaux said, it spends 27 cents on financial aid costs.
“With tuition funds, each dollar assessed produces significantly less than a dollar of net revenue because of the student discounts required for need, merit and other required tuition exemptions,” said Chancellor Michael Martin in his operating budget narrative.
The Board also approved a $3.5 billion operating budget for the LSU System as a whole, $441 million of which comes from the University’s operating budget.
Without the nearly $8 million in support from the Flagship Fund, the University would have faced a much larger budget cut than the nearly $2 million it recently took.
“The Flagship Fund prevented disastrous cuts in LSU’s core mission and lays a foundation for future LSU enhancements,” Martin said in his budget narrative.
Despite the help from the System, Martin and Hamilton have warned a mid-year cut is possible for the University.
The Board of Supervisors meeting also marked the end of James W. Moore’s term as Chairman of the Board.
“The past few years have been challenging for not only LSU, but for higher education as a whole,” Moore said. “I truly believe the best is yet to come for