BATON ROUGE, La. – As required by law, the Board of Regents adopted its preliminary higher education funding formula for FY 2023-24, increasing the percentage of dollars for improved student outcomes from 28% this year to 30% in the next year. The formula is used to allocate funds appropriated by the legislature through its budgetary process. Today’s approved preliminary formula is based on recommendations in the Governor’s Executive Budget, released last month.
To achieve Louisiana’s attainment goal of 60% of adults earning a degree or credential of value by the year 2030, the Board of Regents has consistently adopted policies, including the funding formula, that reward campuses for successfully producing more graduates to boost the state’s overall prosperity.
In the executive budget, priority higher education proposed funding increases include an additional $15M for need-based financial aid allocated through the Louisiana Office of Student Financial Assistance (LOSFA), $37.5M for campus faculty/staff pay increases, $19M for mandated costs, $7.5M for the state’s cybersecurity assurance program, $2M for Pennington faculty recruitment and retention, and $2M for the Louisiana Universities Marine Consortium’s Blue Works and Cocodrie facilities operations.
The formula methodology approved this year for distributing available funds is comprised of 50% base, 20% cost, and 30% outcomes, resulting in an additional emphasis on cost and outcomes, with less reliance on base funding. The chart below reflects Regents’ commitment to shifting funding priorities towards student outcomes over time.
“The Governor’s proposed strategic reinvestments focused on student affordability, faculty and staff retention, and enhanced research directly support talent development in our state,” said Commissioner of Higher Education Kim Hunter Reed. “Our Board is both grateful for the proposed enhanced funding and commitment to driving improved outcomes through our funding formula. We look forward to making the case for these needed resources in the upcoming legislative session.”
The Regents’ approved preliminary funding allocations outlined below will be submitted to the Senate Committee on Education, the Senate Committee on Finance, the House Committee on Education, and the House Committee on Appropriations no later than March 31, as required by state law. Should the funding allocation change through the appropriation process, an updated version of the funding formula will be submitted to the legislature.
To complement its funding allocations aimed at driving increased educational attainment, Regents also discussed several legislative priorities for the 2023 Session, which begins April 10. Those include increased campus safety, improved teacher reciprocity agreements to address the state’s teacher shortage challenge, expansion of the Governor’s Military and Veteran Friendly Campuses, and amendments to the power-based violence law.
“Look for higher education stakeholders to be unified in our engagement of lawmakers this session,” said Board of Regents Chair Collis Temple III. “We see our campuses, students, faculty and staff, and researchers as strategic assets across our state developing the talent necessary to advance Louisiana’s educational, economic, and workforce needs to increase overall prosperity.”