University of Louisiana System CLOSEPRINT

Budget Frequently Asked Questions

WHY ARE THERE DIFFERENT BUDGET GAP NUMBERS?


WHAT IS A TUITION SWAP?
When institutions increase tuition, the projected additional revenue from the increased tuition is backed out of the institution’s state funding.  This may give a false impression of higher education support.  With the exception of 2014-15, this has been the practice since 2009.

WHAT ARE THE PAST BUDGET REDUCTIONS?
Louisiana has lost approximately $700 million in state funding since FY 2008-09.  University of Louisiana System campuses have lost $293 million (-55%) in state funding and $90.2 million (-10%) in total funding.  Click here for a breakdown by campus.

HOW MANY EMPLOYEES HAS HIGHER EDUCATION LOST?
There are 4,374 less employees in higher education than in 2008-09, including 859 less faculty (-7%) and 590 less administrators (-25%).

WHAT HAS HIGHER EDUCATION DONE TO OPERATE MORE EFFICIENTLY?
Louisiana’s colleges and universities have eliminated 336 academic programs and consolidated an additional 226 program.  Institutions also added 131 new programs including online degree offerings, programs offered jointly by two or more institutions, and programs created directly to meet workforce needs.

SHOULD HIGHER EDUCATION LOOK AT REALIGNING, MERGING, AND/OR CLOSING CAMPUSES OR GOVERNANCE BOARDS?
We are not focusing any efforts on exploring mergers or closures, instead investing our time in finding funding solutions.

Several past commissions and studies have exhausted these issues with consistent findings that significant changes such as mergers, closures, and realignments do not yield immediate savings. In fact, such changes would take considerable front end costs.  For example, it would cost the state $111 million to close a university that receives $31.6 million in state funding due to $142.4 million in obligated funds ($95 million in bond debt for facilities; $28.4 million in employee release costs for first year; and $19 million in recurring annual employee expenses such as retirement payments).



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