Latest Budget Information
Budget Update from Chancellor Martin
To: LSU Faculty, Staff and Students
From: Mike Martin
Re: Budget Update
Date: May 21, 2012
You have likely seen recent news reports about developments in the Legislature and potentially devastating cuts to higher education. Please allow me to update you on where things stand at this time.
The state faces a severe financial deficit and the governor submitted a proposed budget that would fill most of that hole. The House, however, passed a budget that cut over $200 million from higher education including stripping out one-time funds of approximately $134 million, leaving a crippling deficit in place.
Frankly speaking, without the one-time funds to fill the deficit, we face dire straits at LSU. Despite the fact that LSU leads the state in virtually every performance measure, we still face significant damage from underfunding. We must contemplate the elimination of entire units, the loss of faculty and staff, and cuts that could set this university back by decades. Without a solution, LSU may not recover for a generation or longer.
The budget has now shifted to the Senate, where we must hope the one-time funds will be reinstated or some other resolution develops. The budget is far from final and during this week there could be more amendments. There is much more to be done and more debates to be had. Hopefully responsible leaders will find ways to avoid further damage to Louisiana's flagship university.
Please understand that, even with the replacement of the one-time funds, we are facing cuts to programs and personnel losses. These are great challenges to our core mission.
To be clear, at stake is the very future of our state. The young people we educate in our classrooms and the research we conduct in our labs are our hope for Louisiana.
Stay tuned. I am sorry I do not have better news today, but I have always promised to level with you on these issues.
We will continue to do everything we can to make our case for the funding that we need to remain a first class university. I will keep you informed as news develops.
Budget Update from Chancellor Martin
From: Mike Martin, Chancellor
To: LSU faculty, staff and students
Date: February 13, 2012
Re: Budget Issues
Last week the Governor announced his proposal for the state budget for the 2012-13 fiscal year and he had encouraging news about protecting higher education in the budget process. During these continuing challenging economic times, we sincerely appreciate the Governor's efforts to preserve higher education in Louisiana.
We will continue to assess all the implications of the Governor’s proposed budget. While the early reaction is relief that it appears higher education will be protected, as we all know, this is a complex matter and significant changes can take place as we move through the legislative process. LSU will stand ready to assist with shaping the right steps for implementing changes to come.
There is a long way to go before the final budget is revealed and, thus, speculation about specifics would be very premature. We are heartened and encouraged by the approach taken by the Governor. And we remain fully committed to being a lead player in creating a new economy which, in turn, will shape a prosperous future for every citizen of the state.
As all of this unfolds, I will do my best to keep you informed about the future of LSU’s budget.
Press Release
Date: December 16, 2011
Re: Budget Issues
Due to a reduction in the state's revenue projections for the current fiscal year, LSU will incur a mid-year budget reduction of $8.1 million, it was announced on Friday.
The budget reduction is required because of a projected $251.3 million deficit in the state budget, of which $50 million will be incurred by institutions of higher education.
"We are disappointed, of course, by this mid-year budget cut but we understand the challenges faced by the state in these difficult times," said LSU Chancellor Mike Martin. "We appreciate the efforts of the Governor and his staff to mitigate the impact on higher education and we will move quickly to formulate a plan to address this cut. Our goal continues to be to protect the core mission of the university, preserve jobs for our employees and continue to give our students a quality college experience."
Legislative Update
June 10, 2011
From: Mike Martin, Chancellor
To: LSU faculty, staff and students
With only two weeks left in the 2011 Regular Legislative Session, we continue to monitor legislation that will affect our faculty, staff, and students. Here’s our continued update on three key issues for LSU’s future:
- Funding for higher education
- LaGRAD Act 2.0
- Changes to employee benefits
As it stands today, the state’s general appropriations bill, HB 1, shows no change in LSU’s budget from the current year. However, of the two measures that would have helped LSU cope with nearly $20 million in unfunded mandates and shortfalls due to the swapping of tuition funds for state funds, one was defeated this week in the House and the other deferred.
The Senate Finance Committee is likely to vote on HB 1 next week. There will be considerable news coverage throughout the week, and we will keep you informed of any changes to our status.
On a brighter note, LaGRAD Act 2.0 (HB 549) cleared the Senate Education Committee this week. This measure builds on the original 2010 LaGRAD Act by granting universities additional autonomies in exchange for improved performance, autonomies that would allow LSU to save costs and direct funds back to the University’s core academic mission. Several new amendments would require additional legislative approval before the University could exercise those autonomies. LaGRAD Act 2.0 includes no tuition or fee increases.
Lastly, we have some important updates regarding proposed changes to employee retirement contributions and benefit calculations. HB 530 made it out of the full House this week with a significant change. The bill no longer calls for an increase in employee retirement contributions. It now calls only for a change in employees’ benefit calculation, basing it on an employee’s highest paying sixty consecutive months instead of the current thirty-six months. The benefit calculation would also take into account only a 15 percent pay increase per twelve months. The change would apply to members of LASERS and TRSL, but would not cause the average compensation of members to be less than it would have been under the current law on the effective date on the bill. A bill that would increase LASERS employees’ retirement contributions (HB 479) has not moved forward in the House, calling into question whether that measure will be able to make it through the legislative process before the session ends.
As always, we appreciate the efforts of many in the Legislature and Governor’s Office to protect higher education from further fiscal damage. We also appreciate the many friends of LSU who have shared their support of the Flagship with Legislators, the Governor and other state leaders. We will continue to update you on these and other important issues as the session progresses. For more detail or information on all other issues affecting LSU, visit www.lsu.edu/externalaffairs for analysis.
Governor Jindal's Proposed Budget for Next Fiscal Year
April 6, 2011
To: Faculty, Staff, and Students
From: Chancellor Mike Martin
Governor Jindal recently submitted his proposed budget for the next fiscal year, and we are grateful that he and his staff have developed a workable budget for higher education. We hope that the Legislature will support this budget because, as you will see in this letter, the consequences otherwise would be devastating for the future of LSU.
The presentation of the Executive Budget comes after months of discussion about just how damaging cuts to higher education could be in the next budget year. While early projections had us planning for cuts anywhere from 10 percent to 23 percent to as high as 32 percent, the governor’s proposed budget would be much more manageable. It is a budget that makes higher education a priority in these challenging economic times.
To better understand what the governor’s budget means for LSU, we find it useful to explain the situation in absolute dollar amounts, using a number we call the Direct Student Impact. The Direct Student Impact – or DSI – is the net amount in any budget exercise that has a positive or negative effect on the LSU student experience.
If the governor’s Executive Budget is enacted, we estimate that total funding for LSU would still have a net decrease – or negative DSI – of $3 million to $5 million due mostly to increases in retirement costs, health coverage costs, and other costs mandated by the State. This is an amount that the University could withstand, although not without some difficult cuts.
If, however, the governor’s proposed budget is not enacted, LSU could face a negative DSI of up to $22 million, and the University’s future as a meaningful flagship institution will be in deep trouble. Consider this: LSU has 14 colleges. Five of the smallest of these colleges have a cumulative budget of $20 million. With a negative DSI above $20 million, LSU would become a shadow of its former self.
Starting at the top with the governor, there are many dedicated people at all levels of government and business working for the good of LSU and higher education in Louisiana. There is a sincere effort to limit the cuts to higher education. We hope this cooperation continues as we prepare for the upcoming regular legislative session.
Mike Martin
Chancellor, LSU
Governor Jindal's Executive Budget
March 11, 2011
To: Faculty, Staff, and Students
From: Chancellor Mike Martin
This morning, Governor Jindal's administration presented his preliminary executive budget to the Legislature. The governor's proposal calls for "no change in funding for higher education." Administration officials also said the governor will propose additional flexibilities for higher education – flexibilities that would remove bureaucratic red tape, allowing universities to operate more efficiently, like businesses, and realize millions of dollars in administrative cost savings.
We are optimistic about what this could mean for LSU, but we have a lot of work to do over the coming days and weeks to understand exactly how the University's budget will be affected.
Among the proposals made today, one recommendation is to require members of the Louisiana State Employees Retirement System (LASERS) to contribute 3 percent more toward their retirement. We are asking for further details to better understand this proposal and whether there are any changes for members of the Teacher's Retirement System of Louisiana (TRSL). As soon as we know more, we will inform the employees that would be affected by this change.
The Faculty Senate is holding a "Chancellor's Forum" on Wednesday, March 16, at 3:30 p.m. in the Shaver Theater in the Music & Dramatic Arts building. At that time, I will update you with any new details we may have. And, of course, we will continue to keep you informed as the state budget progresses through the legislative process and will continually update this website.
Economic Impact Study
February 28, 2011
To: LSU friends, alumni, and supporters
From: LSU Foundation and LSU Chancellor Mike Martin
LSU’s E.J. Ourso College of Business released a study today that shows the University had a $1.3 billion impact last year on the Baton Rouge region. We all know that LSU drives economic development in Louisiana by raising educational levels and producing a high-quality workforce. But this study shows that LSU’s presence also has an undeniable “dollars-and-cents” effect.
Consider the study’s findings: $1.3 billion in direct and indirect sales, more than $738 million in salaries and wages, an estimated 21,940 jobs generated, and more than $80 million in federal research dollars brought in by our outstanding researchers in the past year. Keep in mind that the study doesn’t even touch on the indirect ways LSU drives economic development through small business incubation, commercializing cutting-edge technology, strengthening our workforce through K-12 intervention, improving the University’s surrounding neighborhoods, and more. Also, keep in mind that this study looks only at LSU’s impact on the Baton Rouge region, an impact we know extends throughout the entire state.
This economic impact study affirms our case that LSU is a smart investment with a great return. We will continue to work with our state’s leadership through the upcoming legislative session to ensure LSU’s vital contribution to the cultural, social, and economic future of this state continues.
LSU’s Economic Impact Estimated at $1.3 Billion, Generates Approximately 22,000 Jobs, LSU News Release
Governor's legislative agenda for higher education
February 10, 2011
To: LSU friends, alumni, and supporters
From: LSU Chancellor Mike Martin
Last week Governor Jindal unveiled his legislative agenda for higher education, aimed at protecting LSU and all Louisiana’s colleges and universities from one of the state’s worst budget shortfalls in recent history. At LSU, we are pleased with the Governor’s bold proposals, which we believe will set the University on a long-term path toward greater financial stability and allow us to continue our unprecedented momentum in advancing as a top-tier university.
The Governor’s initiatives offer more than just a “short-term fix” for LSU. His proposals to grant greater flexibility and autonomy to universities in exchange for improved performance will give LSU the ability to take advantage of our unique assets and be entrepreneurial; to be outstanding while finding more efficient, cost-effective ways of operating. Flexibilities in the areas the Governor mentioned – human resources, procurement, facility services, and capital projects – would enable LSU to save the state tens of millions of dollars over the next five years.
In exchange for these flexibilities, the Governor will expect improved performance on graduation rates, retention rates, and overall completers. LSU is committed to continuing our progress on these metrics, to compete not just statewide, but with our national flagship peers. Only one other university in the nation – Maryland – has equaled LSU’s remarkable progress in raising graduation rates. We are proud of our 61 percent graduation rate at LSU, but we know that, given the proper funding and support, we can invest in raising this rate into the 70s.
Finally, we thank the Board of Supervisors for their assistance and leadership and Louisiana’s Flagship Coalition for the hard work they have done on behalf of the University and all higher education in Louisiana. Their proposals that will better enable LSU to excel as a nationally competitive university and will ensure that Louisiana’s children can have an affordable, top-tier education right here in their home state.
LSU Chancellor Michael Martin statement on Gov. Bobby Jindal’s legislative agenda to strengthen higher education in Louisiana
January 31, 2011
LSU Chancellor Michael Martin today issued the following statement on Gov. Bobby Jindal’s legislative agenda to strengthen higher education:
“We are very pleased with the bold proposals Governor Jindal offered this afternoon for higher education in Louisiana. These proposals are not short-term, quick fixes; they are thoughtful initiatives that will set Louisiana on a long-term path to a high-performing higher education system. If approved by the Legislature, the Governor’s legislative package will position LSU, as the state’s flagship university, to continue the unprecedented momentum we have made in raising our admission standards, increasing our graduation and retention rates, increasing research dollars, and advancing as a top-tier university.
“We are especially pleased with Governor Jindal’s proposals to grant greater flexibility and autonomy to universities in exchange for improved performance. Flexibilities in the areas the Governor mentioned – human resources, procurement, facility services and capital projects, and more – would enable LSU to save the state tens of millions of dollars over the next five years. These operational flexibilities would give LSU the ability to be more entrepreneurial and find more efficient, cost-effective ways of operating.
“Finally, we thank Louisiana’s Flagship Coalition for the hard work they have done on behalf of LSU and all of higher education.”
Affect of potential budget cuts on recruiting
January 24, 2011
To: LSU friends, alumni, and supporters
From: LSU Chancellor Mike Martin
Recently LSU baseball coach Paul Mainieri addressed the Rotary Club of Baton Rouge and mentioned the loss of a highly regarded recruit from Texas due to potential budget cuts at LSU. It seems the prospect's mother had grave concerns about the future of LSU because she had heard the talk about state funding reductions to higher education in Louisiana.
Like anything related to LSU Athletics, Coach Mainieri's comments generated quite a buzz in Baton Rouge about the residual impact of budget cuts at LSU. We have to consider how many high school prospects who are highly accomplished in academics are having similar misgivings about committing their future to LSU.
The fact remains that some damage has already been done to LSU and, as we work with state leaders to mitigate the current budget issues, we continue to address financial reductions that have already taken a bite out of our university.
Don't forget that we have already incurred $45 million in reductions to state appropriations since January of 2009, resulting in the loss of 140 faculty positions and 236 staff positions. Fewer faculty members result in reduced class offerings which in turn can slow our students' progress to graduation.
Universities with more resources than LSU are luring away top faculty. LSU has already lost two deans and faculty ranging from one of the top oboists in the nation to a world-class chemist whose work brought millions of research dollars to the state every year.
Foreign language offerings have been reduced and music scholarships have been cut severely, threatening the future of musical instruction at LSU. Funding has been eliminated for the Writing Center, an award-winning tutoring and instruction program that helped LSU students improve their writing skills. State funding has also been eliminated from other programs and centers that support the student experience and impact research.
We remain encouraged that the LSU System, the LSU Board of Supervisors, the Board of Regents, Governor Jindal and the Louisiana Legislature are working to find solutions for funding higher education in Louisiana. But be reminded that any cut, however big or small, will compound the harm that has already been done. While we address our current budget crisis, we must also seek long-term solutions to keep the best and brightest of our young people coming to LSU.
Budget Overview
January 4, 2011
To: LSU friends, alumni, and supporters
From: LSU Foundation and LSU Chancellor Mike Martin
As we continue to seek solutions to the current budget crisis in Louisiana higher education, we are pleased at the efforts of the Flagship Coalition, a group of Louisiana business and civic leaders dedicated to securing a strong future for LSU. The Flagship Coalition has proposed a plan that would provide both short-term and long-term solutions for LSU's financial future.
We have worked with the Flagship Coalition to develop the Plan for the Future of LSU. We believe this plan would help LSU to not only maintain its top-tier quality, but also to excel to greater heights, while simultaneously providing us with ways to better manage our own costs and improve our budget situation.
This plan would enable LSU to become less dependent on the state's fluctuating financial resources and become more self-reliant by providing more opportunities to reduce costs and to produce new revenue. Subsequently the plan would help the university to save faculty and staff jobs and preserve academic programs and research.
The proposed plan would create long-term, significant cost savings for the university resulting from proposed changes to procurement and human resources policies. The plan also addresses ways to increase LSU's revenue to help us better manage our costs from year to year. It is our expectation that this plan would allow LSU to operate more efficiently, pose less of a burden to the taxpayers, and advance as a nationally competitive university.
There are many hurdles ahead. Much of this plan depends on two-thirds support of the state legislature, a daunting challenge for significant change measures. But with the support of the Flagship Coalition, backing by the governor and your support, these important changes can chart a new course for the future of LSU. It is important to note that many of these changes could be beneficial to universities all across Louisiana, not just LSU.
I encourage you to become familiar with the plan at www.lsu.edu/budget. Click on the link on the left side of the page under "Flagship Coalition Plan."
We look forward to working with the LSU System, the LSU Board of Supervisors, the Board of Regents, Governor Jindal and the Louisiana Legislature to find solutions that not only advance our flagship institution, but also serve our sister institutions in the state as they carry out their distinct missions. By working together, we can get past this current financial crisis and achieve a new level of excellence for higher education in Louisiana.
Flagship Coalition Plan for the Future of LSU
December 14, 2010
To: LSU faculty and staff
From: LSU Chancellor Mike Martin
Many of you have heard and asked about the Flagship Coalition's Plan for the Future of LSU that has recently been in the news. I wanted to take a moment to provide you with some key information about this plan and what it would mean for you if it were to be implemented.
We have worked with the Flagship Coalition, a group of Louisiana business and civic leaders dedicated to securing a strong future for LSU, to develop this plan, and the group also has the encouragement and participation of Governor Jindal. We believe this plan will help LSU to not only maintain its top-tier quality, but also to improve even more, while simultaneously providing us with ways to better manage our own costs and improve our budget situation. We also believe the plan will help the university to save faculty and staff jobs and academic programs.
The proposed plan would create long-term, significant cost savings for the university that would stem from changes to procurement and human resources policies. It is important for faculty and staff to note that the reduction to the workforce referenced in the plan would come as a result of attrition, not layoffs. And changes to retirement benefits referenced in the plan would apply only to future employees and would not impact current employees.
The plan also addresses ways to increase LSU's revenue to help us better manage our costs from year to year. It is our expectation that this plan would allow LSU to operate more efficiently, pose less of a burden to the taxpayers, and advance as a nationally competitive university.
The plan is available online at www.lsu.edu/budget.
News about LSU’s Future
December 8, 2010
From: Mike Martin, Chancellor
To: LSU Faculty, Staff and Students
Today I have two exciting announcements.
The first is that the University is rolling out “Flagship 2020: LSU Transforms Lives,” the next iteration of the University’s original Flagship Agenda, which led LSU to make such remarkable progress over the last decade.
The second is that I now have renewed confidence in the University’s ability to accomplish the goals of Flagship 2020, because of the work of a new, powerful group of LSU supporters, Louisiana’s Flagship Coalition. The Coalition’s aim is to push through the Legislature a plan that would put LSU on a path to long-term financial self-sufficiency. This plan proposes major cost reductions and a modest revenue increase to help LSU operate more efficiently, pose less of a burden to taxpayers, and advance as a nationally competitive university. If Flagship 2020 is our academic vision for the future, the Coalition’s plan is the vehicle to get us there.
The Flagship Coalition met with the Governor yesterday, and I am pleased to say that the Governor gave the Coalition’s plan his strong support. Of course, we will continue to look to our state leadership, particularly the Legislature, for courageous and creative initiatives that support a strong flagship university. And we will continue to work with the LSU Board of Supervisors and our System colleagues to ensure that we all complement each other’s efforts.
Please visit www.lsu.edu/flagshipagenda to view the Flagship 2020 Agenda, and please stay attuned to news of the Coalition’s plan. Both documents are vital to the immediate and long-term future of our University. We look forward to receiving feedback from the Board of Supervisors and other members of the LSU community.
This news about our future should encourage us all, as should the successes we have continued to make in the face of great challenges. Without doubt, the series of budget cuts we’ve experienced over the past two years have forced difficult decisions and adversely affected our capacity to keep the covenant we must maintain with our students and the residents we serve. Still, to date, thanks to the talents and dedication of our faculty, staff, students, and supporters, LSU remains a top-tier, widely respected, internationally recognized university.
Enrollment—LSU welcomed the second-largest, most diverse, best-prepared class in LSU history. Louisiana students continue to value a high-quality education.
Forever LSU—We have successfully completed the $750 million “Forever LSU” campaign. Alumni in Louisiana and beyond still value a strong flagship university. We owe great thanks to Henson Moore for leading this effort.
Faculty and Student Awards—LSU’s students and faculty continue to win national awards and recognition at the highest levels, proving LSU provides national-caliber opportunities.
Research—LSU’s faculty members continue to be nationally competitive in scholarship. Grant and research activity are up more than 50 percent from just a decade ago.
Performance—By every measure—retention/graduation rate, research productivity, operational efficiency, and more—LSU leads the state and competes effectively with its peer institutions. LSU’s graduation rate is 61 percent, for example, while the average for all the state’s public universities is just 38 percent.
The LAGrad Act—The LAGrad Act, passed and made into law in the 2010 Legislative Session, is a meaningful first step in providing greater autonomy for improved performance for all Louisiana colleges and universities. LSU is particularly well positioned to advance under this reform measure.
Impact—We recently recognized ten faculty members whose research on the BP oil spill will shape policy and response efforts to future environmental disasters. This is only one example of how the University continues to impact our community and state through scholarship, service-learning, outreach programming, and volunteerism.
Athletics and Academics—We are especially proud to be one of only two universities in the country whose athletic department receives no state funds, no student fees, and actually contributes financially to the classroom.
Campus Improvements—Despite the current economy, we have made long-term capital investments in the campus including the Business Education Complex, Choppin Hall Annex, a new band hall, construction of new and renovations of existing residence halls, and expansion of the PMAC.
As we celebrate our 150th anniversary as a University, it’s clear that we have made great strides despite the challenges we face. I have every confidence that with great supporters like the Flagship Coalition, with the promise of a financial model appropriate for a flagship institution, and with the outstanding faculty, staff, and students of this University, we will continue our progress toward national prominence.
Have a very happy holiday season.
LSU Graduation Rate
November 19, 2010
To: LSU friends, alumni and supporters
From: LSU Foundation and Chancellor Mike Martin
Much has been discussed about the 38% graduation rate of Louisiana's public universities. That is true as a collective rate for all universities in the state. But, as a supporter of LSU, you will want to know the graduation rate for your university
LSU's graduation rate is 61%. That number is up from 38% in 1987, the year before admissions requirements were introduced at LSU.
LSU's graduation rate is 61%. Only one other Southern Regional Education Board peer university in the entire country has increased its graduation rate as much as LSU in the last two decades. That's a fact.
LSU's graduation rate is 61%. LSU believes graduation rates should be included in the formula that determines how state funding is distributed among Louisiana's universities. It is not now included in that formula and it never has been part of the formula.
LSU's graduation rate is 61%. And Gov. Jindal's LaGRAD Act gives us more incentive to continue to improve on that performance. LSU will continue to work to help students succeed and achieve their life goals. Getting a college degree in a timely manner from LSU will serve them well as they take on the world.
We look forward to working with state leadership to find solutions for funding LSU and higher education in Louisiana. By working together, this number can increase dramatically. Know the facts. Go to lsu.edu/budget for more and updated information on LSU's budget crisis and go to flagshipfriends.org to find out how you can make a differe nce.
Message from LSU Foundation about the future of LSU
November 4, 2010
To: LSU friends, alumni and supporters
From: LSU Foundation and Chancellor Mike Martin
Much has been said and written about LSU's budget crisis. Given the consequences, it is important for LSU's closest friends and supporters to know the pertinent facts about this situation. So over the course of the next several months, you will be presented facts that will help you consider the impact of these cuts to your university.
First, it is important to know where LSU has been and where it is going. LSU's state appropriation increased throughout the last decade, reaching a high in 2008 that allowed LSU to add faculty to better serve its students and conduct richer research. At the same time, LSU reached the Top Tier in the U.S. News & World Report rankings for the first time while also enjoying a spike in graduation rates and retention rates. LSU proved it can perform with the best when given the proper resources.
Since that time, though, LSU's state appropriation has dropped. In the last two years alone LSU has had $47 million cut from its budget. That's an average of more than $2 million per month. And in the last several months LSU has been asked to prepare for cuts of 23 percent to 33 percent. But with the $47 million that has already been erased, any cut - even 5 percent - would erase the progress of the last decade and would be detrimental to the future of LSU.
The damage that has already been done has largely gone unnoticed, but it has been substantial. For instance, more than 140 faculty positions have been lost. Those were mostly unfilled positions that have been cut, but it represents 140 faculty members who today could be teaching our students and giving them the education they deserve.
You will hear more about this in subsequent letters. Meanwhile, I encourage you to go to lsu.edu/budget for more and updated information on LSU's budget crisis and to go to flagshipfriends.org to find out how you can make a difference.
Mid-year Budget Cut Increase
October 20, 2010
To: LSU faculty, staff and students
From: LSU Chancellor Mike Martin
Dear LSU community,
LSU has submitted a revised plan for meeting a new mid-year budget reduction of $5.1 million, as required by the Division of Administration. Below are the details of the cut, which we will also be sending out in a press release later today.
After submitting plans for a $2.2 million mid-year budget reduction last week, LSU was notified on Monday that its mid-year cut has been increased to $5.1 million. LSU – and other student-serving institutions within the LSU System – were given higher budget cuts so that the LSU AgCenter and Pennington Biomedical Research Center could be spared larger mid-year cuts.
LSU calculations show that, because the cuts for the AgCenter and Pennington were re-distributed to the remaining universities within the LSU System, LSU’s mid-year cut went from 1.6 percent to 3.7 percent. The additional cuts could have been distributed among all higher education systems in Louisiana, but were not.
To meet the cut, LSU will:
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Reduce funds in several areas of the LSU School of Veterinary Medicine, including the Louisiana Animal Disease Diagnostic Lab and the Arbovirus Testing Program, which provide research, diagnoses or control of animal-related human diseases such as West Nile virus, encephalitis and rabies;
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Change the source of funds for graduate assistant tuition exemptions on employing campuses, totaling nearly $1 million;
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Utilize funds generated by tuition and fees from a higher-than-expected freshman enrollment this fall, which LSU had planned to use to temporarily increase classroom support, reduce section sizes and provide counseling and tutoring hours for students;
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Change the source of funding for the Academic Center for Student Athletes from the university to the Athletic Department.
As you know, LSU has already endured $42 million in reductions in state appropriations since January of 2009. The new cut brings LSU’s losses to $45 million in 22 months, an average of more than $2 million per month. For more information please visit www.lsu.edu/budget and www.flagshipfriends.org.
Mid-year Budget Cut
October 15, 2010
From: Mike Martin, Chancellor
To: LSU faculty, staff and students
As required by the Division of Administration in the Governor’s Office, today LSU is submitting its plan for meeting a $2.2 million reduction in its 2010-11 budget. The budget reduction was required because of a $108 million deficit in last year’s state budget, much of which has been thrust upon institutions of higher education.
We will accommodate the mid-year budget reduction with tuition and fee revenue generated from a higher-than-expected freshman enrollment this fall. As you know, more than 5,400 new students enrolled at LSU in the fall, the second-largest incoming class in school history.
Had there been no reduction in state appropriations, we would have been able to use the increase in tuition revenue to provide services to these additional students by temporarily increasing classroom support, reducing section sizes and providing necessary counseling and tutoring hours to accommodate the larger population of students.
Should this mid-year cut become permanent, we are prepared to implement a series of permanent reductions. These cuts could eliminate a portion of the general fund support of the Louisiana Geological Survey, phase out scholarships in the School of Music, transfer costs associated with Greek Life to a fee basis, eliminate a portion of state funding to the Louisiana Animal Disease Diagnostic Lab and move the funding of the Academic Center for Student-Athletes to the athletic department.
We cannot assume the financial boost from higher enrollment numbers will continue in the face of further budget cuts. We must plan for this budget cut to become permanent and we must do that planning with the anticipation that enrollment will fall.
We have already endured $42 million in reductions in state appropriations since January of 2009. This mid-year cut, or other mid-year cuts that may still be handed down, may force us to accelerate the implementation of more program eliminations or consolidations on campus. These cuts continue to adversely affect the quality of the education we can offer at LSU and the quality of services we can provide.
I encourage you to know the facts about our budget situation by going to www.lsu.edu/budget. Make your friends aware of the situation so they, too, will know what is happening to our university.
Fiscal Year 2011-12 Budget Update
September 15, 2010
To: LSU Faculty, Staff and Students
From: Michael Martin, Chancellor
Re: Budget Update
As you are aware, we have now been asked on two occasions to submit hypothetical budget reduction scenarios in anticipation of reduced state funding for higher education in the 2011-12 fiscal year. The first report in July projected a loss of $46 million in state funding. The current report, which will be submitted by the university today, projects a loss of $62 million.
A cut of this magnitude would be devastating for LSU and would result in the loss of hundreds of jobs on campus. Please keep in mind that these reports are hypothetical. It will be months before we know what lies ahead for LSU.
My goal is to provide the community with information that will be helpful in understanding and dealing with this crisis. I do not want to increase concern or anxiety, but the State Division of Administration has mandated this report, leaving us no choice but to comply.
Today’s report is posted on LSU’s website at www.lsu.edu/FY12BudgetCrisis/listings.shtml.
We have already incurred $42 million in losses over the last 21 months. Any further cuts, regardless of the amount, will be devastating to our mission. We do not know what lies ahead or what we will be asked to do next, but we will continue to make the case to all constituents as forcibly as possible that these cuts would be destructive to the state’s flagship institution, catastrophic to the local economy and disastrous for the future education of the children of Louisiana.
Broadcast to LSU Faculty and Staff
August 19, 2010
To: LSU faculty and staff
From: Chancellor Mike Martin and
John Hamilton, Provost/Executive Vice Chancellor
Re: New Budget Exercise
Today, we received instructions from the state to go through yet another budget exercise with the requirement that we project a funding reduction of 35 percent for the 2011-12 fiscal year, the equivalent of $74 million for LSU. Having endured three budget cuts in the last 20 months, the consequences of an additional cut of this magnitude would be catastrophic for LSU.
We have until September 15 to submit our report, and we will be working up until the very last minute to determine how we would achieve such an extraordinary reduction in funding. The current exercise to determine a potential 23 percent cut is proving to be excruciating. To reduce the university’s budget by 35 percent would be ruinous to LSU for generations.
We will keep you informed as we proceed.
Rest assured we will communicate clearly and forcefully the consequences of these cuts and the devastating impact they would have not only for the university but also for the state it serves.
Forever LSU Campaign Hits $710 Million Mark
August 17, 2010
To: LSU alumni, supporters and friends
From: W. Henson Moore Chairman, Forever LSU
On the evening of June 19, 2006, LSU supporters gathered at Jazz at Lincoln Center in New York to kick off Forever LSU: The Campaign for Louisiana State University. Four years later, I have the pleasure of sharing with you that the generosity of LSU alumni and friends has helped Forever LSU to raise over $710 million in private philan- thropic support for LSU, the LSU AgCenter and the Paul M. Hebert Law Center; an additional $34,040,000 in state matching funds has also been contributed to Forever LSU. As we mark that tremendous achievement, LSU's need for private financial support has never been greater—and so the continued success of Forever LSU is more critical than ever before.
When the LSU Foundation, the Tiger Athletic Foundation and the LSU Alumni Association joined forces in this historic effort, none of us could have anticipated the nationwide economic downturn or the budgetary crisis that the LSU System now faces. In the context of these financial hardships, the outpouring of financial support from our alumni and friends is particularly impressive. Those partnerships support the pillars of Forever LSU: student support, faculty support, university-wide support and campus infrastructure. My commitment to furthering financial support for these areas remains strong. My hope is that a similar commitment is felt by the scores of Tigers worldwide who are invested in LSU's future.
You may know that LSU faces a scholarship gap for fiscal years 2011-12 and 2012-13. Our status as a tier-one in- stitution with increasing admissions requirements and world-class opportunities has resulted in other increases: increased admissions applications and increased demands for merit- and need-based aid. That rising interest, coupled with the economic crisis, necessitates that we take immediate action to increase scholarship funding.
Despite the uncertainty brimming in higher education, Forever LSU is unwavering in its top priority: student support. LSU is and will remain more affordable than any of our peer institutions. We will continue to provide more need-based aid than any other institution in the state. We are focused on recruiting the best and brightest to LSU. We need your help. Every dollar given to support scholarships creates leaders who shape the future.
Letter to Campus Community Regarding 2010 Legislative Session
June 11, 2010
We are approaching the end of the 2010 Legislative session and many things remain uncertain and are unsettling. Here’s what we know (or think we know) at this stage:
The LaGrad Act will likely become law and, on balance it represents a move in the right direction with respect to performance-based funding and greater institutional autonomy. The current bill permits a 10 percent tuition increase in the coming year, but this has not been voted upon by the full Legislature. Until a final bill is passed we can only budget for the current authority we do have which is 5 percent tuition increase.
We expect to receive directives to begin now to prepare for even larger budget reductions in fiscal year 2011-12. In doing so, we will continue to apply the criteria and process outlined on the Faculty Senate webpage. Many people close to the budget situation believe things will get worse before they get better.
Fortunately we have highly qualified internal candidates to fill vacant administrative roles. We will use these valuable human resources during this period of fiscal uncertainty rather then make offers to external candidates which could ultimately lead to job losses for some current employees on campus. We face a “less than zero-sum” reality. When this economic crisis passes we will launch national searches as appropriate.
Hopefully everyone understands that we are truly in uncharted waters. There is no record in LSU’s history that compares to the financial conditions we now face. A series of unanticipated large budget cuts have put us in grave danger. We have exhausted all reasonable degrees of freedom in responding.
It is my commitment to protect our academic core and those who serve it through these very daunting times. This will mean doing business in non-traditional ways and making very painful decisions about program cuts, reductions and restructuring. None of this will be pleasant, but we owe it to those we serve to sustain the Flagship and maintain its cause.
Plan for Closure, Reduction of Campus Units
May 24, 2010
On Friday, May 21, I met with a planning task force to present recommendations for the elimination or reduction in funding of a number of academic programs, centers, institutes and facilities at LSU. This task force, comprised of faculty, staff and students, was created earlier this year to guide decisions to close or reduce academic units for the purpose of combating the University’s current fiscal crisis. Friday’s meeting was to discuss Phase One of an on-going process to dramatically reduce costs at the university due to substantial reductions in state funding.
The changes presented Friday would result in a savings of approximately $3 million annually for LSU when fully implemented. This process is consistent with our Plan for Greater Impact on Louisiana (www.lsu.edu/budget) -- specifically the Focus initiative in The Plan -- that we announced in March to manage the severe budget issues facing LSU in the months and years ahead.
These projected savings would be in addition to approximately $2 million in savings already identified through the Efficiencies and Entrepreneurship component of the Change initiative of The Plan. These involve changes to administrative and support systems in the university that include implementation of electronic payment solutions, renegotiation of university contracts, strategic sourcing and energy savings.
Consistent with my commitment to keep you informed about budgetary developments, I am writing to you today to inform you of these recommendations. Later today a press release will be issued to publicly announce these recommendations.
These are difficult and heart-wrenching decisions, but they are decisions that must be made in light of the current fiscal crisis.
Academic programs recommended for closure include the Master of Library and Information Sciences, the Bachelor of Arts in German and Latin and the reduction of language options for a savings of approximately $1.5 million at full implementation. Additional savings of $500,000 would be achieved through administrative adjustments in Continuing Education.
Centers, institutes and facilities recommended for closure include the Office of Community Preservation in the College of Art & Design; the Louisiana Population Data Center and the Writing Center in the College of Arts & Sciences; the Design & Drafting Center, Scientific Glassblowing Facility, Geochemistry Facility, Oxy-Anion Stable Isotope Center and Bird Resource Center in the College of Basic Sciences; the Education Policy Research Center in the College of Education; and the Center for Advanced Materials in the Office of Research and Economic Development.
Also recommended was the elimination of state funding to the Eric Voegelin Institute and Cartographic Section in the College of Arts & Sciences; the United States Civil War Center and the T. Harry Williams Center for Oral History in the LSU Libraries; and the Center for French and Francophone Studies in the Office of Research and Economic Development.
Total savings achieved through eliminations and changes to centers, institutes and facilities would be approximately $1 million.
These recommendations were made based on criteria developed by the planning task force for the purpose of addressing LSU’s fiscal crisis. The criteria was developed with the ultimate concern for the centrality of programs, units or services to LSU’s mission as a top-tier research, land-grant institution and to LSU’s academic core. The criteria can be found at the LSU Faculty Senate’s website at http://www.lsu.edu/senate/.
The university is now moving forward to take steps to implement these changes. The university is analyzing each unit and every individual affected to determine the best course of action. To the extent possible, it is LSU’s intention to honor commitments to students already in these programs and those who have enrolled for the fall semester. A timeline for change in each unit will be determined only after this analysis is complete.
These recommendations further define the severity of our financial situation and demonstrate our commitment to emerge from this crisis a strong university. This process is not an easy one and there will surely be great consternation and anxiety as we follow through on these recommendations and further changes are deliberated. But it is a process that is necessary given the current circumstances. I intend to keep you informed every step of the way.
Revenue Projections and Budget
April 16, 2010
Today, Gov. Jindal announced a plan by which higher education would be spared from additional, end-of-the-year budget cuts. The estimated cost savings of $3 million from the recent executive order enacting a spending freeze will cover LSU’s portion of the $29.5 million budget cut to higher education.
The governor's announcement today is good news for LSU. We appreciate the governor's plan and hope that the Legislature will approve this recommendation.
The governor's proposal would allow us to protect the academic core, and we will continue to make financial and programmatic efforts consistent with the LSU Plan for Greater Impact on Louisiana to become a leaner, more focused university.
We will continue to find new pathways for success to transform this great university and lead change in Louisiana higher education. We again appreciate Gov. Jindal for following through on his commitment to higher education in our state.
Revenue Projections and Budget
April 14, 2010
Today the Revenue Estimating Conference of the State Legislature released its projections for the remainder of the fiscal year and projected a decrease of approximately $319 million in state revenues.
Because the Legislature is currently in session, it is the responsibility of the Legislature to determine any budget adjustments to meet revenue shortfalls. Therefore at this time we do not know what this means for LSU nor do we know how long it will be before we are given more information about the status of our budget for the remainder of the fiscal year.
Obviously this is very concerning to all of us, both for the current fiscal year and for future years. In light of this potential financial blow we are: a) continuing our analysis related to program reductions and eliminations, b) pursuing additional revenue to LSU including increases in tuition and fees as proposed in the LA GRAD act, c) delaying final decisions on searches for administrative positions, and d) working to find additional efficiencies and savings in all administrative and support functions.
I remind you that, as the media begin reporting on the options for dealing with budget cuts, no final decisions have been made at this time. Be assured we will do all we can to protect our academic quality and the student experience at LSU. And we will, of course, do all we can to protect jobs. But also know that we have already used many of our “degrees of freedom” in coping with budget cuts visited upon us over the past 18 months.
Hopefully we will get better economic news as the Legislature wrestles with our fiscal 2010-11 budget. Still we face difficult but necessary decisions as we seek to shape LSU’s future and its service to the people of Louisiana.
I will keep you informed as events unfold.
Revenue Projections and Budget
April 1, 2010
In keeping with my pledge to communicate critical information to you, I wanted to share the latest developments in our budget situation.
This evening, we have submitted a plan to the LSU System that addresses how we propose to handle the mid-year budget cuts we may be facing. We don't yet know whether we will have to make these mid-year cuts, nor how our plan will be received by the LSU System. But I wanted you to be aware that this step has been taken.
As the media begin reporting on these options for dealing with the cuts, please remember that no final decisions have been made at this time. As I have said many times during these past 15 months of cuts, anything and everything is on the table, and the options are likely to be painful, especially this close to the end of the fiscal year. However, I will continue to do everything possible to protect LSU's greatest asset – its people – as well as the core mission of this university.
I will provide you with another update once I have more definitive information from the Governor on the nature of these cuts, and once I have received feedback from the LSU System on the plan we submitted. Until then, please continue your great work and know that I appreciate your understanding and flexibility during these trying times.
Revenue Projections and Budget
March 23, 2010
Last week we were presented with the sobering news that more mid-year budget cuts may be handed down to higher education in Louisiana, and today the House Appropriations Committee met to discuss that very matter. You will likely be reading about these conversations in the days to come, so I am writing to you as we contemplate the potential ramifications of another mid-year reduction.
If the target number of $84 million for higher education is accurate, LSU could face cuts in excess of $11 million. Frankly, our options for finding that much money in the budget this late in the fiscal year are severely limited. We would need to look closely at University funds currently set aside for capital projects and we may have to delay some of those projects. We will also look at restricted funds such as those for campus improvements and technology. Finally, and unfortunately, we may need to resurrect the discussion of employee furloughs.
Campus morale is of utmost importance to me, so I hesitate to mention the possibility of further adverse impacts on the great people who work here and the great students we educate. But I have long pledged to maintain open and honest communication with the campus community, so I must make it clear that all options will be put on the table if faced with such severe cuts so late in the fiscal year.
We hope this new round of mid-year cuts will not come to pass. I will keep you informed as we learn more about this situation, but in the meantime we must remain united as a campus to provide our students with the educational experience they deserve and to continue the research that is critical to the future of our state, our nation and our world.
Revenue Projections and Budget
March 18, 2010
You may have read in media reports that state revenue projections for the current fiscal year continue to decline. Today, the state provided a possible target number of $84 million that may have to be reduced from the higher education current fiscal year budget.
We have not been given instructions at this time to take any action nor have we been provided with any indication of how this will directly impact LSU. But in keeping with my practice of communicating to you critical campus matters, I thought it was important to make you aware of these developments today.
If called upon to institute further cuts in what remains of this fiscal year, we will once again initiate appropriate adjustments in consultation with academic leaders, faculty, staff, and students and we will keep the campus updated every step along the way.
We will continue to work together in these troubling times to keep our University on the right path. Thank you for your continued good work and cooperation.
LSU Announces Plan for Moving Forward in Face of State Budget Shortfalls
March 8, 2010
Louisiana ImpactBATON ROUGE – LSU Chancellor Michael Martin, in anticipation of continuing state revenue shortfalls that will result in the downsizing of budgets for state agencies and universities, has announced a three-part strategy for the future of LSU called “The LSU Plan for Greater Impact on Louisiana.” The plan is designed to create a stronger university that can meet the needs of the state by helping to create a more vibrant economy through the production of an energetic workforce and business leaders who will produce jobs for the state as well as more robust research that will benefit Louisiana, the nation and the world. Read More
Budget Update
February 12, 2010
Governor Jindal‚s Preliminary Executive Budget was submitted to the Legislature earlier today, and he recommended no additional cuts to institutions of higher education. This is very welcome news, especially to a university that has already endured a $43 million reduction in state funding.
While this might come as a great relief to most of us, there are a few things to remember about this news.
First, the governor‚s budget is just a recommendation. The Legislature can alter it as they wish. The House Appropriations Committee is expected to review the higher education budget on March 23, which is the start of a long deliberation that will end on June 21. The budget could change drastically by then.
Second, the outlook for fiscal year 2011-12 is still grim. The state budget is currently anticipated to have a shortfall of $1.4 billion, and federal stimulus funds representing $38.6 million of our current budget are expected to expire then. We must continue to plan for that difficult time.
Third, the University still has internal budget pressures to mitigate. LSU will have about $14 million in unfunded mandate costs and $12.7 million to annualize from this year‚s budget cut. There are also some academic and research commitments that cannot be postponed another year.
Considering these realities, we will need to continue to make financial and programmatic plans for LSU to become a leaner, more focused university. Such planning will insulate us during the uncertain times ahead. As mentioned in Wednesday‚s Faculty Senate-Chancellor Forum, we will proceed with program reviews to determine which, if any, programs should be eliminated, reduced, or consolidated. We will continue to seek efficiencies and welcome entrepreneurial activities of the faculty and staff. We will make proposals to remove administrative obstacles that constrain our ability to manage the University. Lastly, we will seek the ability to appropriately price an LSU education, which will help us mollify the budget rollercoaster.
Budget Update
February 5, 2010
To: LSU Staff, Faculty and Students
From: Chancellor Mike Martin
Re: Update
As you all know, we continue to work through the many challenges and painful adjustments associated with the $43 million in base budget impacts over the past 12 months. While we await the release of the Governor’s 2010-11 budget on Feb. 12, we continue to seek ways to: a) cope with serious resource constraints, b) protect our academic core, c) minimize adverse consequences for students, d) maintain our national rank and recognition as a Flagship university and e) minimize job loss.
Here’s some of what’s happening:
- As a necessary response to future budget uncertainty, we have issued one-year notice of non-renewal letters to 244 non-tenure-track faculty.
- It is our fervent hope that we are granted more funding than we currently anticipate, but in the meantime, we must have maximum flexibility in light of the uncertainties we face.
- Over the next few months, we will work to narrow our academic focus to ensure we remain committed to excellence even if we will be doing less. This will mean program eliminations and reductions. At the same time we will seek every possible means to reduce the cost of administrative and support services. In the end, I believe we have to make programmatic cuts that will yield budget savings of at least $15 million on a recurring basis.
- Not long ago we assembled a group that included faculty, staff and student leaders to define a set of criteria for program eliminations/reductions. The administration is currently using these criteria to help develop a proposal. We will then take that proposal back to the group for further discussion.
- The Realignment Taskforce and its subcommittee continue to make progress. However, the outcomes of realignment discussions will likely be affected by decisions made with respect to program eliminations and reductions.
- We will continue to hold faculty-staff open forums sponsored by the Faculty and Staff Senates. The next is scheduled for Feb. 10 at 3:30 p.m. in the Bo Campbell Auditorium, Cox Communications Center. Please participate as we share frustrations and aspirations for LSU in light of contemporary realities.
- Even as we struggle with decreased recurring funding for programs and operations, we continue to attract investments for new and improved facilities. This is some good news, even in hard times.
- We are approaching the completion of the Forever LSU campaign. I’m confident we can and will meet our $750 million goal. This serves to remind us that “winners bet on winners.”
- Among other things, we are seeking greater latitude to increase revenues for tuition and fees to compensate for the loss of state support.
Budget Update
January 14, 2010
LSU Anticipating Personnel Reduction Due to Budget Cuts
Instructors on the LSU campus are being advised by their deans that personnel reductions may be unavoidable next year due to future budget cuts, Chancellor Michael Martin said Thursday.
“I have asked the deans to have conversations with their instructors about possible personnel reductions within the university in the coming year,” Martin said. “The university has had to make adjustments to its professional and classified staffs in the past, and now we must be prepared to address all areas of our workforce as we brace for future budget reductions. We must have available to us as many options as possible so that we have maximum flexibility in our budget to address the cuts when they come.
The discussions are in anticipation of further budget cuts to higher education for the 2010-11 and 2011-12 academic years.
“This obviously is not something we want to do, but we must have flexibility with our budget due to the unknown financial future of higher education in this state,” said Martin.
Budget Update
January 8, 2010
LSU Submits Mid-Year Budget Reduction, Chancellor Martin Says University’s Tier One Status is at Risk
LSU submitted its mid-year budget-reduction plan to the LSU System Office today. In the budget-reduction plan, the university slashed $12.66 million from its operating budget in response to mid-year budget cuts. This brings the total impact on LSU’s budget to approximately $43 million in the last 12 months.
The rescission was dictated by an $84 million reduction in funds for higher education by the state of Louisiana. Included in the submission are layoffs, position eliminations and the altering of campus services.
Approximately 166 positions will be affected either through elimination of vacant and filled positions or changes in source of funds. These positions include teaching and research/economic development related jobs.
“As the state’s Flagship University, these changes are not in the best interest of LSU and the people the university serves,” said LSU Chancellor Michael Martin. “Unfortunately, our status as a Tier One institution, a cornerstone of the Flagship Agenda, is at risk as these cuts will clearly impact the scope and quality of LSU’s core services.”
The mid-year budget-reduction plan was developed by academic and nonacademic units, which submitted their individual budget reductions to the LSU Office of Budget & Planning. These include laying off employees or eliminating vacant positions; eliminating graduate assistantships and undergraduate student positions; reducing or eliminating faculty travel, scientific equipment and technology upgrades.
“We have reduced both jobs and services on the LSU campus to meet this mid-year cut and all indications are there is more to come in 2011,” Martin said. “In this round of cuts, a few people lost their jobs, and the elimination of additional vacant positions means a heavier workload on a workforce that is already stressed by previous cuts.”
“We had to take this immediate action to address mid-year cuts, but we must quickly look at the larger objective which is to address the long-term financial impact to the university as we face further cuts in the year ahead,” Martin said. “We have to look closely at eliminating centers, institutes and academic programs and re-evaluate how we do business.”
Among the most significant reductions on campus listed in the mid-year budget reduction includes the cancelation of several required courses, which may result delaying some students’ anticipated graduation dates; fewer counselors, leading to a higher counselor-to-student ratio; and cancellation of faculty searches. Many of these budget reduction measures will jeopardize future accreditations for programs and degree offerings.
Unique programs and offerings at LSU will also be affected by the mid-year budget cut. These range from degrees offered to lab space on campus to fulfilling state initiatives, including but not limited to the following:
- The College of Engineering’s ability to continue educating a majority of the engineering and construction management graduates in Louisiana will be affected. Currently, LSU educates about 72 percent of the state’s graduates in those fields. Based on workforce predictions through 2016, there is already a shortfall of 230 engineering and construction management graduates to fill employment needs.
- The Securities Markets Analysis Research and Trading, or SMART, Lab in the E. J. Ourso College of Business is at risk of being closed.
- The Baton Rouge Region and Louisiana Science and Engineering Fairs will be curtailed, affecting approximately 1,100 Louisiana middle- and high-school students.
- The Center for Computation & Technology will alter its strategic plan by dropping important areas to the state such as coastal modeling used to predict storm surges during hurricanes.
Students will see the impacts of the budget reduction in other ways, such as less visiting scholars and guest lecturers; an impact on minority student recruitment through the budget reductions for the Office of Multicultural Affairs and African American Cultural Center; and a smaller Tiger Marching Band.
Visitors to campus may also notice an impact on LSU’s buildings and grounds, as the Office of Facility Services was forced to reduce its workforce. The $1.07 million cut to the Facility Services’ budget will hinder its ability to maintain LSU’s more than 11.3 million square feet found in 250 principle buildings.
While these cuts and future ones will impact the university, LSU will move forward as a mission-oriented institution facing a difficult financial situation.
“These cuts and the cuts we face in the future are damaging,” Martin said. “They hurt severely. We will fundamentally and structurally change the university.”
Budget Update
January 5, 2010
To: LSU Staff, Faculty and Students
From: Chancellor Mike Martin
Re: Revenue Projections and Budget
Dear Colleagues:
As you know, the state issued notification before the holiday break that mid-year budget reductions for higher education will total $84 million and LSU's share is $12.66 million. We are also planning for a shortfall of an undetermined amount in a special fund dedicated to faculty pay which may further increase the reduction from state sources.
I have distributed information to the vice chancellors and deans to outline LSU's mid-year budget cuts. To meet the requirements handed to us by the state, LSU's academic colleges and schools will be cut an average of 4 percent while other units will be cut an average of 5 percent. The average 4 percent cut to the academic colleges and schools will be implemented on a differential basis with cuts ranging from 2.5 percent to 6 percent.
I met today with vice chancellors, deans and other unit heads to answer questions, provide clarification on issues and to seek input. I am appreciative of everyone's participation. Some difficult decisions have to be made in short order as we have been directed to submit our mid-year cuts by the close of business on Friday.
These budget cuts will clearly impact the scope and quality of the University's core services. This will hurt. We have to take this immediate action to address mid-year cuts, but we must quickly look at the larger objective which is to address the long-term financial impact to the University as we face further cuts in 2011. Our status as a Tier One institution, which was a cornerstone of the Flagship Agenda, is clearly at risk.
We must work together to address these financial obstacles and move our University forward. Ultimately, as a mission-oriented institution facing a difficult financial situation, we must focus on those things at which we can best excel. With the perseverance of our dedicated faculty, staff and students, we will eventually be a leaner but more focused University.
Mike Martin
Budget Update
December 22, 2009
To: LSU Staff, Faculty and Students
From: Chancellor Mike Martin
Re: Revenue Projections and Budget
Dear Colleagues:
Today the state issued notification that mid-year budget reductions for higher education will total $84 million. The LSU System Office is projecting LSU’s share of the reduction will be $12.66 million. I am sorry to share unfortunate news with you at this time, but in keeping with my practice of maintaining strong communication with the campus on financial matters, I thought it was important to send this message.
We will immediately begin the process of initiating appropriate adjustments in consultation with academic leaders, faculty, staff, and students and we will keep the campus updated every step along the way. Some very hard decisions will have to be made.
By working together we will overcome these financial obstacles and move our University forward. Thank you in advance for your cooperation.
Mike Martin
Budget Update
December 17, 2009
To: LSU Staff, Faculty and Students
From: Chancellor Mike Martin
Re: Revenue Projections and Budget
Dear Colleagues:
It has been my practice to communicate openly with the campus community about important issues, whether the information is promising or discouraging. I intend to continue this practice through these trying financial times because it is critical that we all understand the impact the financial environment will have on LSU's immediate and long-term future.
As we approach the beginning of a new calendar year, we have been closely monitoring the financial outlook of the state of Louisiana. Today, the state lowered its revenue projection for the current year by about $197 million, which increases the size of the budget shortfall already existing from unanticipated increases in expenditures. This means the state will need to adjust its current spending accordingly over the remainder of the fiscal year. The state also lowered the revenue projection for FY2010-11 by about $193 million.
This is not pleasant news to share, but I wanted you to hear it from me before you learned about it from the media. Last year we engaged the campus community to resolve our financial issues at the time. If necessary, together we will do the same in the coming year to preserve the critical mission of LSU.
It is important to note that we have not yet been informed of the implications to our University. If official notification is received to reduce our budget, we will initiate the appropriate adjustments in consultation with academic leaders, faculty, staff, and students. But let me be clear, higher education has not yet received any notification.
Should a mid-year budget cut be announced, we will follow the same guiding principles presented last spring, which are:
- Protect the academic and operational core and our commitment to students
- Wherever possible, continue progress on the Flagship Agenda
- Maintain some capacity to take advantage of "targets of opportunity," which advance our journey to excellence
- Pursue every avenue to improve efficiency and/or effectiveness in both academic and non-academic functions and programs
- To every extent possible, protect jobs
Tomorrow, LSU will hold its 270th commencement and we need to seriously deliberate how we can continue to serve the best and brightest students in Louisiana with further constrained resources. By working together - as we have done in the past -- I am sure we can overcome any obstacles and move our University forward.
Mike Martin
