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Office of the Chancellor
External Affairs
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Non-Session Updates
LSU Plan for Greater Impact on Louisiana
In anticipation of future budgetary challenges, Chancellor Martin has announced the “LSU Plan for Greater Impact on Louisiana."
The core of the plan has three elements – change, focus, and autonomy – that will forge a path to higher performance and accountability.
The LSU Plan-Full Report
The LSU Plan-Summary
Budget Cuts?
The non-session updates are dominated by possible budget cuts. This is what has been reported to date:
- The Revenue Estimating Conference (REC) met in December and readjusted the official state forecast to $197 million lower than expected. This brings the total budget shortfall for the current year (FY2009-10) to $248 million. An executive order was issued requiring higher education to cut $84 million in the current year.
- The REC also revised downward the revenue estimate for the Support Education in Louisiana First (SELF) Fund by $12.3 million (See pg. 2; LFO estimate was adopted). Universities have not been notified if the state will be able to compensate for the loss of revenue.
- The anticipated budget shortfall for FY2010-11 is now greater than $1 billion. The anticipated budget shortfall for FY2011-12 is also greater than $1 billion, meaning the state will need to slice more than $2 billion from its budget.
- Prior to the budget forecast change, Gov. Jindal asked the Postsecondary Education Review Commission to identify $146 million in budget cuts for FY2011-12.
- Comissioner Angele Davis advised the Joint Legislative Committee on the Budget that the Governor will request a waiver of the federal stimulus agreement limiting budget cuts to colleges so that higher education can be cut more.
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FY08-09 |
FY09-10 |
FY10-11 |
FY11-12 |
| State Shortfall |
$341 million |
$248 million |
$1 billion |
$1 billion |
| Higher Education Budget Cut |
$55 million |
$84 million |
$146 million (proposed) |
unknown |
| LSU Budget Cut |
$10.4 million |
$35.6 million |
unknown (generally 16%) |
unknown |
History of Cuts
| Date |
Amount of LSU's Cut |
| Jan. 2009 (mid-year) |
$10.4 million |
| Jul. 2009 (new fiscal year) |
$19.5 million |
| Jan. 2010 (mid-year) |
$12.7 million (SGF) |
| Jul. 2010 (new fiscal year) |
unknown |
| Jul. 2011 (new fiscal year) |
unknown |
Background: The state's budget is based on predicted revenues from taxes, fees, licenses, and royalties. When the economy stumbles, the state's revenue prediction group, called the Revenue Estimating Conference, will change the projections.
2008-09 Mid-year Cut Timeline:
- Dec. 15, 2008, the Revenue Estimating Conference predicted that the state's revenue will be $341 million less than originally thought. This means that the state must cut its spending by that amount within the fiscal year, which runs July 1 to June 30. The Revenue Estimating Conference also predicted that FY2009-2010 revenues will be $8.09 billion, which is $1.27 billion less than the current fiscal year.
- January: LSU's cut for the 2008-09 fiscal year was $10.3 million, or 4.4% of LSU's state general fund appropriation. Of higher education's total $55 million cut, LSU represents the largest portion at 16%.
- March 13: Governor's Preliminary Executive Budget presented to the Legislature. No cuts or stimulus funds included in the budget.
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