With two months left in the legislative session, more than 1,000 bills have been filed, tackling issues ranging from abortion to minimum wage to feral hogs to pink hunter outfits.
Higher education leaders are eyeing legislation that will affect them as well. Here are some of the bills and issues that will impact colleges and universities.
HB 1
HB 1 is the state’s budget, carried by Appropriations Chairman Cameron Henry, R-Metairie. This is perhaps the most important piece of legislation for colleges and universities this session because schools are fighting with every other agency for funds, while the state still faces a $750 million shortfall for the upcoming budget cycle, beginning July 1.
Because 2016 is an even-numbered year, the Legislature cannot raise taxes. That’s why a special session was called in February to raise some quick cash and plug massive budget holes. Universities took a $28 million mid-semester budget cut because TOPS was underfunded, while narrowly avoiding what could have been deep cuts from the general fund.
Commissioner of Higher Education Joe Rallo expects an 8-10 percent cut statewide to higher education, to the tune of $60-75 million for the upcoming fiscal year. With Gov. John Bel Edwards’ budget proposal set to be announced next week, this is far from set in stone, and the Legislature could call another special session after the regular session ends to backfill some cuts.
But, as Henry noted, there doesn’t seem to be much of an “appetite” for more taxes — especially among the GOP majority. Either way, Sen. J.P. Morrell said, “a bell will be rung that cannot be unrung.”
TOPS
The Legislature largely agrees on one thing: the Taylor Opportunity Program for Students needs tweaking. TOPS is at the top of many lawmakers’ lists. For Edwards, it’s the only thing on his agenda for higher education.
The scholarship’s cost has ballooned in recent years, and will hit an estimated $300 million next year if fully funded. This is primarily because the Legislature has supplemented state funds for higher education with higher tuition, which has also exploded, though Louisiana public college tuition is still lower than most states.
The TOPS-related bills Edwards supports deal solely with cost-savings. SB 79, by Sen. Dan Morrish, R-Jennings, SB 174, by Sen. Jack Donahue, R-Mandeville, and HB 390, by Rep. Nancy Landry, R-Lafayette, would all decouple TOPS from tuition. That way, if tuition increases, TOPS doesn’t automatically increase, leaving students to deal with the gaps in costs. Tuition increases have comprised the bulk of the rising costs of TOPS.
Donahue proposed this measure last session, and it passed through both houses, with Edwards voting in favor, until it was vetoed by former Gov. Bobby Jindal. It is expected to pass, in some form, this time around.
The only money ensured to TOPS in next year’s budget is around $60 million. That means, if the Legislature does not find the money, the required ACT score could be raised to 28. Students will not know for sure if they qualify for TOPS until funding is secured. If a special session is called to find that money, students could find themselves in limbo while they wait to see if they qualify.
Countless lawmakers have chided TOPS’ low academic benchmarks and its lack of requirements for students to pay back the award if they don’t complete college or stay in Louisiana after they graduate.
Mary Ann Coleman, who oversees the 10 private colleges in the state, said “our demographics are going the wrong way.” Many lawmakers agree.
HB 846, by Rep. Stephanie Hilferty, R-Metairie, would require TOPS recipients to pay back one full year of the award if they do not stay in Louisiana for a year after graduation. It would also require full repayment if a student loses eligibility or drops out, with exceptions for extreme circumstances.
Rep. Julie Stokes, R-Kenner, has a similar proposal that would make TOPS a loan program, with all debt forgiven if a student graduates.
A handful of legislators have also proposed modest increases in eligibility requirements, raising the required ACT score one or two points and the GPA to 2.75 instead of 2.50.
Other TOPS bills are pending committee movement, including some with slight differences in how the scholarship should be paid back if students drop out or lose their eligibility.
AUTONOMIES
With the looming expiration of the GRAD act, which gave school boards some autonomy over tuition, higher education leaders are eyeing the power to increase tuition on their own.
Barry Ivey’s HB 439 would allow school boards to increase their tuition up to 10 percent per year, capping at 20 percent over four years. But, Ivey, R-Baton Rouge, said the bill has some legislative oversight to prevent school administrators from having a “checkbook to the treasury,” because of TOPS awards given out to students at those schools.
HB 989, by Rep. Rob Shadoin, R-Ruston, addresses out-of-state tuition for schools. Tuition for out-of-state students must be at least equal to the same tuition of SREB (regional peer) schools. There is an exception to the law for historically black colleges and universities, but this bill would eliminate the requirement altogether.
Rep. Patrick Jefferson, D-Homer, is carrying HB 788 for the Board of Regents. The bill would allow colleges and universities to choose whether they pay into the state’s risk management program. Rallo estimates for every dollar Louisiana colleges and universities receive from the state, they pay back 63 cents in unfunded mandates, programs like risk management, legislative auditor and retirement programs. This bill is an effort to allow schools, whose employees are inherently low-risk, to pay lower risk management costs.
EFFICIENCIES
Streamlining higher education in Louisiana, which has more schools than more highly populated Florida and more independent governing bodies than New York, has become a sticking point for lawmakers who want to grab every efficiency they can when dealing with budget woes.
Rep. Chris Broadwater, R-Hammond, is also carrying a bill for the Regents. HB 842 would consolidate three boards, including the one that oversees TOPS, into the power of the Board of Regents, as an effort to streamline more education operations. But, as Rallo noted, colleges and universities have cut 5,000 positions over the last few years.
“We think what we’ve been doing in the last few years is pretty good,” he said.
If more budget cuts come and TOPS is not fully funded, Rallo said “it is going to be a very dicey situation.”