One concern that is arising for the state of Louisiana is the possibility of budget cuts which includes Southeastern Louisiana University, a campus under the University of Louisiana System.

According to a Campus Budget Update by President John L. Crain, “I recently joined other higher education leaders from across our state in a meeting with our new Governor, the Honorable John Bel Edwards. The subject of our meeting was the deteriorating condition of the state budget. In the current 2016 fiscal year which ends June 30, Louisiana faces a $750 million budget shortfall. Given persistently low petroleum prices, this shortfall is expected to exceed $800 million by mid-February when the Revenue Estimating Conference next meets. In addition, the 2017 fiscal year, which begins July 1, appears to be approximately $1.9 billion short of the necessary revenues to fund state expenditures at the same level planned in the current fiscal year.”

The budget crisis will impact the faculty, staff and students of the university and according to the Campus Budget Update by Crain, “has resulted in a ‘perfect storm’ where our state’s fiscal health is concerned.” 

Other administration also raises their concerns on the issue.

“This is an extremely difficult time in the state of Louisiana,” said Vice President of Administration and Finance Sam Domiano. “The projected budget deficits we face are unprecedented.”

With the raising concerns for the possibility of a shortfall in the 2016 fiscal year, Crain is working with the government in order to try and find a solution to the issue. 

“As indicated in Dr. Crain’s message to the campus community earlier this week, he is in discussion with fellow higher education leaders, the governor’s administration and the governor himself,” said Domiano. “The plan to address the mid-year budget shortfall must be proposed by the governor with approval of certain elements by the House of Representatives and Senate.  Revenue measures that involve new or increased taxes require a two thirds majority support of both houses of the Legislature. Those votes and decisions will impact whether or not higher education must suffer additional cuts and what that amount will be.”

Southeastern has to consider the timing of the budget cut among one of the major concerns with the possible budget cuts.

“There are two major challenges that we face in meeting the potential five-million-dollar budget reduction,” said Domiano. “One such challenge includes the timing of the reduction.  The University operates on a fiscal year, which runs from July 1 to June 30 of each year.  Our ability to implement strategies to accommodate the reduction with less than five months remaining is extremely limited because a large part of budgeted funds are already expended or committed.”

Another thought the university is taking into consideration is how plans  made for budget reductions took place several years ago, and now savings in certain areas are no longer possible.

“Furthermore, the magnitude of a five-million-dollar cut after experiencing years of budget reductions that began in December of 2008, also greatly complicates the challenge,” said Domiano. “Many of the efficiency measures, program reductions, position eliminations and reductions in expenses that were possible have already occurred, so opportunities for savings in those areas no longer exists.”

The university has been taking steps over the last few years to help with budget cuts that impact the campus.

“Given the magnitude of the cuts to higher education, including Southeastern, the university has taken numerous measures over the course of the last several years to accommodate the reductions in state support,” said Domiano. “Such action included: The elimination of 22 low-enrollment/low productivity academic degree programs, a reduction of more than 400 faculty and staff positions from the operating fund, reorganizing and streamlining operations for greater efficiency, utilizing restricted and one-time funding where possible to support general operations and reduction in operational expenses such as travel, supplies, acquisitions and repairs. It is important to note that while these reductions were being made, the University also experienced increases in mandated costs of more than $ 7 million annually.  These costs include such things as employee retirement, insurance costs and Legislative Auditor costs, further complicating our ability to respond to cuts in state support.”

The faculty and staff are not the only ones who have felt the burden of budget cuts to the university. Students have also had to deal with the budget issue in their own way.

“During this same time period, our students have experienced an increase in their tuition costs of more than 116 percent,” said Domiano. “This places a greater financial burden on our students requiring many of them to work additional hours, enroll in fewer courses and in some cases, potentially sit out or delay their enrollment as they attempt to secure the necessary funds to enroll.  This also impacts the university’s ability to retain the student and the student’s ability to progress and graduate.  All of these items negatively affect retention and graduation rates that ultimately also impact funding in the form of state appropriations and revenue generated from student tuition and fees.  Most importantly, however, the student is impacted in their ability to complete their degree and successfully enter the workforce.”

With the possibility of mid-year budget cuts taking place, it is important for the students to keep up with information on the issue.

“Students should stay informed of the decisions that may impact them and the university,” said Domiano. “The Southeastern Alumni Association sponsors a ROAR Network (Reach Out Advocate and Rally) that is free and open to anyone to register.  As the legislative sessions get underway, communications are sent via the ROAR Network on a regular basis in order to keep individuals informed of the goings-on in Baton Rouge that can and will impact Southeastern.”

Along with the ROAR Network, those who may want to learn more about the University of Louisiana System, or past topics of discussions dealing with other issues involving higher education, they can visit ulsystem.edu.

Legislators are scheduled to start discussion of the budget issues to higher education on February 14.