Multiple state officials gathered in the Louisiana State Capital to discuss the options they
  had to avoid the $900 million budget shortfall which threatened
state programs such as higher education and health services.

The Lion's Roar / Heather Jewell

The state legislature’s decisions in the special session to address the budget shortfall last Wednesday will impact higher education, but the details are still unknown. 

The shortfall, which Governor John Bel Edwards referred to as the “largest in the history of the state” started off at an estimated $900-$950 million and ended at an estimated $30 million after the special legislative session ended. Lawmakers agreed to new taxes and budget cuts in the final eight minutes of the session to reduce it to its new number.

Commissioner of Higher Education Joseph C. Rallo’s official statement on the Wednesday night conclusion sheds light on the how the state government’s higher education experts expect public universities in Louisiana will be affected.

“We knew that tough decisions were going to have to be made during this special session,” said Rallo. “Today’s actions have far-reaching implications on higher education’s budget for both the current and upcoming fiscal year.”

What those “far-reaching” implications mean for the university remains unclear right now. Vice President for Administration and Finance Sam Domiano said any information at this time would be speculative. Severe weather and flooding cancelled school from Thursday afternoon until the following Monday delaying university budget officials. 

President John L. Crain said in a mass email to the university the outcome is “mixed.”

For the purpose of putting the numbers in perspective, the average national tuition for a public four-year college is $9,139 according to the College Board, a non-profit for college students. The U.S. Department of Labor puts the national average of a full-time professor’s yearly income at $98,974. Rounding up to the nearest whole number, $30 million is equal to of 3283 students or 303 professors. 

According to the university’s website, 14,498 students and 277 full-time faculty were at the Southeastern for the Fall 2014 semester. The $900 million would have equaled 98,479 students or almost seven times the amount of students at the university. It would have equaled 9,032 professors or almost 33 times the full-time faculty at the university.

Lawmakers did not correct the problem for next fiscal year. It will have a projected $800 million shortfall which was projected to be $2 billion before the special session. Edwards was disappointed this hole was not plugged as well. 

“We didn’t do a very good job over the last three weeks,” said Edwards in a press conference following Wednesday night’s conclusion. “Thank goodness I gave them an extra four days because it seems like they needed every single minute to get where we are.”

The state legislature met again on Monday for their regular session, which runs until Jun. 6. The state Constitution forbids any new taxes from being raised during a regular session, but Crain expects lawmakers to work on next year’s projected budget shortfall.

“Nevertheless, during the Regular Session, the Legislature must craft a balanced budget, originating from the Executive Budget proposed by the Governor,” said Crain. “It will not be a pretty sight, given that the proposed budget is expected to reflect nearly $800 million in reductions.”

The $30 million budget deficit expected for this year still could only be speculative as well. The Advocate said some officials are estimating it could be as much as $50 million. 

The Lion’s Roar will be continuing its coverage of the effects of budget cuts on the university. Later editions will have more details about the story as officials make final decisions. 

Aside from the impact on the university, new taxes have been levied in the state. According to the Associated Press, House Bill 61 passed increased the 4-cent sales tax by one penny by every dollar spent. It also closed many of the exemptions to the sales tax. 

Lawmakers agreed to other taxes such as a raise in alcohol and cigarette taxes as well as taxes on rental cars and hotel rooms booked through Airbnb.