Regents Applaud Education-Focused FY23 Budget

“This year’s budget for higher education is one for the record books. We are so grateful to the Governor and the Legislature for providing the best state reinvestment in higher education to date and for their support of important policy priorities designed to improve affordability, universal transfer, teacher recruitment and retention, and dual enrollment. We celebrate the investments in financial aid that will make college more affordable for our students and in significant repair and construction funding, which will allow our campuses not only to maintain and upgrade existing assets but also to create spaces that support evolving educational needs. Investing in education is critical because it’s an investment in our people and a more prosperous Louisiana. This cradle-to-career budget expands opportunities. It prioritizes talent development and we thank everyone who worked tirelessly to make it a reality.”

Key FY23 Budget Stats

• $159.2M – Largest state funding increase for higher education ever ($84.9M State General Fund increase and $74.3M Statutorily Dedicated Funds increase)
• This is a 12% increase in higher education funding from FY2022

• $31.7M – Largest state-funded faculty pay increase since FY2007
• Two-year phase-in of $51.6M designed to increase faculty pay to the SREB average
•  Only back-to-back faculty pay increases since FY2007 and FY2008 ($61M)

• $15M – Largest GO Grant increase since the program began in FY2008 with $17M in initial funding
• This represents a 37% program increase since FY2022

• $330M total investment keeping this merit-based aid program fully funded

• $312.8M – Largest capital outlay allocation to higher education, made up of Priority 1, Priority 2, and Cash funding
• $137.4M or 77% increase from FY2022
• 87 Projects – Most projects contained in the Capital Outlay program since FY2008
• $50M – Largest deferred maintenance allocation since FY2008

Highlights (Recurring and Non-Recurring)

• Following last year’s first statewide faculty pay raise in 13 years, this investment is an important next step toward retaining and recruiting outstanding faculty. The investment is designed to increase salaries to the Southern Regional Education Board (SREB) average, a goal last reached in Louisiana in FY2008.

• This year’s budget provides the largest budget infusion for GO Grant (need-based aid) since the program’s inception in 2008 and fully funds the state’s new adult financial aid program, M.J. Foster Scholars, while also fully supporting TOPS.
• The GO Grant program launched in FY2008 with a $17M investment. It received a $9M boost in FY2009 and over subsequent years grew by a total of $3.4M. FY2023’s significant increase, coupled with last year’s $11M investment, will almost double the program’s funding, from $29M in FY2021 to the FY2023 amount of $55.5M. Even prior to the pandemic, LOSFA estimated that less than half of GO Grant-eligible students received the award due to insufficient funding.
• In addition, the Budget includes $10.5M to fully support the state’s M.J. Foster Scholars Program for Adult Learners. This new financial aid program, legislatively created last year, will launch in July, providing support to adult applicants pursuing education and training in select high-demand and high-wage fields in Louisiana through community colleges or proprietary schools.
• These two increased investments, along with the continued full funding of TOPS, prioritize improved affordability for students in Louisiana. 

• A $15M increase in performance funding is designed to continue incentivizing Louisiana’s two- and four-year public postsecondary institutions to improve student outcomes, retaining and graduating more students in support of the state’s attainment goal. That goal calls on Louisiana to more than double the number of credentials annually awarded in our state by 2030.

• The FY2023 Budget provides new strategic investments to educate students in safe learning environments, support our institutions, and increase the education-to-employment pipeline to get more people back to work and into better, more meaningful careers.
• Title IX/Power-Based Violence Training/Compliance Support ($5M)
• Continuing Budget Stabilization – Mandated Cost Increases ($18M)
• Additional funding to expand nursing and allied health workforces across the state ($29.2M)
• Increased funding for Louisiana’s Specialized Institutions (Medical Schools, Pennington, LSU and SU Ag Centers, and Southern University Law Center) ($23.6M)
• Reboot Your Career Initiative/Broadband Workforce Training at Louisiana’s Community and Technical Colleges to directly support workforce development and statewide broadband expansion ($20M)
• Institution-specific initiatives (cybersecurity at LSU A&M and LSU Shreveport, online program expansion at Southern University at New Orleans, academic and security studies at LA Tech and Grambling, and STEM programs) ($11.7M)  
• Innovation and accreditation needs to reach Master Plan goals ($5M)

Quotable Quotes