June 24, 2018

Third Special Session Recap

Third Extraordinary Legislative Session

The 3rd Extraordinary Special Session of 2018 concluded its work shortly after 8:00 p.m. on Sunday, June 24, 2018.

The Governor called this special session to address an anticipated revenue shortfall of nearly $641M resulting from the expiration of a temporary one penny sales tax on June 30, 2018. Representative Paula Davis sponsored and passed a measure (HB10) that renews .45 of one penny and generates $463M for the state budget starting July 1, 2018, to address what has been known as the “fiscal cliff.” This revenue is necessary to address the $96M needed to stabilize higher education funding, the $88M needed to fully fund TOPS as well as resources needed to address other higher education and state government needs. As a result of the $463M in continuing revenue and the appropriations bill passed during the 3rd Extraordinary Special Session, higher education funding status for Fiscal Year 2019 is as follows: BASE FUNDING NEEDS

Higher education institutions and system funding is restored to the FY 18 level of $743M.

TOPS funding is appropriated at $294.6M, which represents full funding for the FY 19 fiscal year. (Includes $57.9M from the TOPS Fund)

ENHANCEMENTS

$3.2M to Southern University for accreditation needs.

$2M to Louisiana Office of Student Financial Assistance (LOSFA) for additional GO Grant funding (state funded need-based aid). Total funding is now budgeted at $28.4M. This is the first funding increase for the program in 10 years.

$1.5M to Grambling State University for STEM program upgrades to increase four- and five-star job production.

$200K to LOSFA to provide GO Grants for Youth Challenge Program graduates.

Governor John Bel Edwards is expected to sign both the revenue and appropriations bills into law.

Statement from Dr. Kim Hunter Reed “Today’s final action is outstanding news for our students, families and the institutions that serve them. We’re grateful for the bi-partisan legislative actions that have resulted in stable funding for higher education, full funding for TOPS and increased support for need-based aid. Thanks to the Governor and legislators for their prioritizing our students.” Dr. Kim Hunter Reed, Commissioner of Higher Education Louisiana Board of Regents

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Contact: Terrence Ginn,Deputy Commissioner for Finance and Administration [email protected]| 225-342-4253