Fiscal Health Focus of Latest Higher Education Budget Hearings

BATON ROUGE, La. – Leadership from each of Louisiana’s four public postsecondary systems shared their FY27 institutional budgetary plans during Tuesday’s Higher Education Budget Hearings, conducted annually by the Board of Regents.

“Every year, these Budget Hearings are an important step in helping Regents understand the fiscal realities facing our two- and four-year public institutions, as well as how they plan to address funding challenges and the growing workforce demands of the state,” said Finance Committee Chair Blake David. “It’s imperative that our systems and institutions have contingency plans in place to address the ever-changing technological and economic dynamics.”

Division of Administration Commissioner Taylor Barras opened Tuesday’s Budget Hearings with an overall picture of the state’s current financial status and reminded Board members that he will have a clearer picture for the FY28 budget after December’s Revenue Estimating Conference.

“The budget stabilization number has reached its highest level in our state’s history,” said Commissioner Barras. “It’s refreshing to see stable balances like this. Louisiana has built some incredibly good savings accounts, and we hope to see that persist in the future.

“We will enter this upcoming budget cycle presenting what we have presented each of the last three years,” Barras said. “The safest method for Regents (and the systems) is to plan for a standstill budget for FY28.”

As part of its FY27 budget process, Regents invited the four public system presidents and their chief financial officers to present plans to utilize this year’s appropriated funds, outline planned efficiencies, and discuss continuing needs of colleges and universities as they provide education and training to more than 200,000 students in Louisiana.

In addition to discussing their priorities for the current academic year, system leadership noted their fiscal assessments, accomplishments, and challenges, along with ways in which their current-year budgets align with the statewide Master Plan for Higher Education. Public higher education system budget presentations highlighted:

• Efficiencies and overall fiscal health
• Priorities and current actions for FY27
• FY28 needs and potential federal funding impacts
• Campus enrollment updates
• Immediate and long-term budget adjustments

Also during Tuesday’s hearings, State Economist Greg Albrecht updated Board members on the state’s fiscal forecast.

“For the most part, I have good news,” said Albrecht. “However, in order for us to sustain our current employment growth, our state will need continual population growth and/or greater labor force participation.”

Additionally, Commissioner Barras invited Assistant Commissioner Roger Husser, who oversees facilities and capital outlay, to update the Board on higher education’s deferred maintenance needs.

“We are doing a statewide assessment of deferred maintenance to understand the needs on a campus-by-campus and system-by-system basis,” said Husser. “From Regents’ and systems’ perspective, this report will help us understand how these deferred maintenance funds could best be invested.”

Regents will consider approval of the FY27 higher education operating budget during its regular meeting on Wednesday, September 23. That action serves as the final step in the FY27 budget cycle. Regents’ budgetary responsibility is both constitutional and statutory and is specifically granted under Louisiana 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 FY28 budget cycle is underway, with Regents expected to approve next year’s higher education budget request next month, for submission to the Division of Administration on November 1 as required by law.