BATON ROUGE, La. – During Tuesday’s annual higher education budget hearings, the Board of Regents received an update on the state’s fiscal forecast, as well as system reports on the potential impacts of projected budget cuts to Louisiana’s public postsecondary institutions.
Commissioner of Administration Taylor Barras shared with the Board the outlook for the fiscal year ahead and discussed the pending tax reform plans as an effort to both stabilize the budget and increase economic competitiveness.
“Anytime you have cuts, education and health care are unfairly focused on because these aren’t constitutionally protected funds, and it’s painful,” said Commissioner Barras during Tuesday’s budget hearings. “What Rep. Jack McFarland and the legislature are doing is the right approach in looking at a worst-case scenario. You have to discuss the sunset of the $0.45 sales tax and other budget cuts. We need to plan for some sort of cut. Hopefully, once we go through everything, this won’t be a worst-case scenario, but we still have to present a worst-case scenario budget on February 28.”
As part of its FY 2024-25 budget process, Regents welcomed the system presidents and their chief financial officers to speak about institutional plans for utilizing this year’s appropriated funds and the continuing needs of colleges and universities as they improve their competitiveness in a rapidly evolving market.
In addition, in discussing their priorities for the current academic year, the systems noted the effect of inflationary pressures on operational costs. With the $0.45 sales tax scheduled to sunset in FY 2025-26, Regents was charged to develop plans for higher education to accommodate a $250 million reduction across all systems. System leadership was asked how these potential decreases would impact their system, institutions, and students. Public higher education system budget presentations highlighted:
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- Strained campus budgets due to higher energy costs, as well as general inflation, all of which in turn increase the total cost of operations
- Campus enrollment updates
- Financial outlook priorities for stability and opportunity
- Significant concerns about the devastating impact of potential budget cuts
“We are grateful to the Governor and the entire Legislature for supporting our FY 2024-25 budget and passing measures that will positively impact our colleges and universities,” said Commissioner of Higher Education Dr. Kim Hunter Reed. “As we face the potential for funding reductions and enrollment concerns in FY 2025-26, we know that an investment in our people allows them to get the education and training necessary to succeed.”
Regents will consider approval of the FY 2024-25 higher education operating budget during its regular meeting on Wednesday, September 25. That action will complete the final step in the FY 2024-25 budget cycle. Regents’ budgetary responsibility is both constitutional and statutory and is specifically granted under Revised Statute 39:32.1, which states that budget proposals are subject to approval by both Regents and the individual management boards.
Work on the FY 2025-26 budget cycle is underway, with Regents expected to approve next year’s higher education budget request next month for submission on November 1st to the Division of Administration as required by law.
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Contact
Chris Yandle, Ph.D., APR, Associate Commissioner for Strategic Communications
chris.yandle@laregents.edu • 985-373-5845