The Board of Regents discussed the state’s financial woes Monday and recognized a $1.3 million cut, which was proposed by the governor and approved by the legislature’s joint budget committee on February 15, to the board’s support fund.
The cut was part of $60 million in state spending reductions proposed by Gov. John Bel Edwards to bridge a budget gap of more than $900 million for the current fiscal year, ending in June.
Higher education may take a cut of anywhere from $70 million, under the Edwards administration’s “best case scenario,” to more than $200 million, which government and higher education leaders have agreed would devastate colleges and universities in Louisiana.
Commissioner of Higher Education Joe Rallo told the board that universities in the state cannot absorb even the best case of $70 million this year — especially as it looks down the barrel of $180 million in possible cuts next fiscal year.
“Let us not grow complacent,” Rallo said. “When I hear legislative leaders say ‘I think we can manage ’– we cannot manage.”
Board members concurred with Rallo that after years of cuts, higher education is in a precarious position for funding.
“Other than that, we’re about to fall off a cliff,” said board member Roy Martin.
The $1.3 million already cut from the regents funds comes from a statutory dedication — state money that flows into a certain area automatically each year — for the Board of Regents Support Fund, which provides money for endowments, research programs and fellowships.
When a budget deficit is announced, the governor is allowed to take up to five percent from statutory dedications in the budget. The “best case scenario” for cuts will occur if Edwards’ tax proposals are passed, his administration has said.
The board also approved sending $300,000 from the support fund to a program led by LSU and Tulane researchers in “smart manufacturing.” The program has already received a $1.7 million award for their research.
“Excellent program,” Martin said. “Kudos to LSU and [Executive Director of Policy and External Affairs] Jason Droddy for spearheading this effort. It’s good to have some research dollars in this state.”
