Friday, February 27, 2009

University Sustainability Tip #3- There is No Visibility Through Fogged Glass: An Argument Against Partial and Superficial Transparency

What good is a room with a breathtaking view whose windows haven’t been washed in a decade? How useful are glasses with one shattered lens? How well can one drive without defogging his windshield on a cold day?

The ability to perceive through observation is innately human. We seek to satiate our desires to know and understand through investigating firsthand things that interest and matter to us.

Money undeniably satisfies both of those requirements. And as a price for living in a civilized society, we pay a sizeable chunk of our earnings in taxes (that are too high and too tediously complex, but I digress…). And because we contribute to the creation and maintenance of government projects, we should enjoy the right to examine how those dollars are being spent. When taxes are hardly voluntary (unless you are a crafty politician), should compulsory fees we pay to the government be spent by politicians and bureaucrats without any accountability?

Interestingly enough, LSU System President John Lombardi appeared all too eager to disclose the system’s expenditures on the aforementioned LaTRAC website. Unfortunately for taxpayers, many of us, when delving into each budgetary component’s intricacies, were met with three dirty words: “SUMMARY DATA ONLY.” This phrase signifies the budgetary roadblock of an inability to further investigate a spending category’s specifics.

Sure, Lombardi had no problem telling Louisiana taxpayers that he spent XXXXX on teachers’ salaries. However, disclosing each employee’s salary is left up to the scoop-seeking DAILY REVEILLE and THE TIMES PICAYUNE. And Lombardi had no problem releasing the figures for the egregious $1.8 million in teachers’ conference fees. We just have no idea where these conferences were, which teachers went, how much each cost and what these conferences entailed. Heck, if I were a professor traveling to Greece for a three-day conference and the University footed the bill for an eight-day tropical vay-cay, I would be a little hesitant, as well.

While this problem can be found all over state agencies’ budgets posted online, it is particularly interesting that higher education gazes upon its budget cut fates with tear-filled eyes of desperation, with little or no attempts to meet Louisiana taxpayers halfway.

And how does higher education remedy this dilemma? While financial records can be public records requested and the government (Freedom of Information Act, or FOIA), government hardly expects ordinary citizens to request receipts from public sector purchases. This is why it is owed to the taxpayers of Louisiana that higher education provides every transaction, down to every last penny, in an online, searchable database. As mentioned in previous postings, the infrastructure is already in place and there is no excuse for refusing to comply with this appeal.

It’s time for the bureaucrats of Louisiana higher education to turn on the defogger for the collective windshield of the taxpayers. We’d really like to see what’s on the other side. And as mentioned before, if they are as noble and upright as they claim to be, it is my belief that Louisianians will support their fight for continued funding. We all know that a strong higher education system means a strong Louisiana. And for those who aren’t entirely convinced, this might just do the trick.

Just as a good report card means a trip to Celebration Station for a round of putt-putt for an eight-year-old, a chance at proving their responsibility can garner rewards greater than they could have imagined. But just as a third grader can’t run to his parents and claim he has a 4.0 without proving it with a stellar report card, the university should not reap the benefits without proof of its responsibility expressed with a fiscal report card.

Certainly, higher education wants to renew a public confidence that has long diminished through countless years of waste and mismanagement. And I can’t think of a better opportunity than now.

Success Stories

I was personally told today that some of our readers have been using the "Contact Your Representative" feature at the right side of our blog. This is great news!

This blog is nothing but wasted breath if its readers do not take action and speak out on your opinions regarding the budget situation. It can involve as little effort as posting a response on one of our own entries, or posting responses on the Advocate or Daily Reveille Web sites. You can write a letter to the editor, or submit your own ideas for a post to us, or start your own blog, or e-mail your representatives. It all starts with YOU.

Sunday, February 22, 2009

University Sustainability Tip #2- Cut Classes That Don't Work

This might be the most unpopular in my series of university sustainability tips, but I think it's still pretty necessary to point out. It is time that university systems start cutting classes and programs that are low-enrolling, underperforming or just plain pointless.

Whether it's "African American English" or "Primary Trumpet," there are plenty of offerings throughout the entire university in many degree programs that are simply not generating enough interest to keep them around during an economic "crisis." I suggest the university systems go line-by-line and decide which programs do not garner enough student support to deserve remaining on campuses in our state.

This is not to say that during times of prosperity that the university systems can't examine reopening these classes for enrollment, but right now, I think we can all do without them. Period.

Friday, February 20, 2009

House leader asks whether Louisiana has too many colleges

09:15 PM CST on Thursday, February 19, 2009
Bill Capo / Eyewitness News

BATON ROUGE, La. – Does Louisiana have too many state colleges and universities? The speaker of the house wants to know whether expert opinions uphold his impressions.

"We have a facility almost on every corner, and in New Orleans that is particularly true,” said state Rep. Jim Tucker, who is the speaker of the house. “Where that becomes a problem is it is not the human capital side of higher education where the real dollars are lost. It is in the infrastructure where we are not utilizing buildings and facilities as efficiently as we could."

Find the rest of this story here.



What do you think? Do you think there are too many colleges? What ways could the higher education system in our state help eliminate wasteful spending?

Thursday, February 19, 2009

Enrollment Issues


From the LSU Daily Reveille, 2/19/2009:




"...An estimated 8,500 students may leave the University if state funding is cut by 30 percent next fiscal year.

This figure — among others like hikes in tuition and student fees — was not included in the LSU System’s “budget reduction exercise” released Feb. 4.

“We’ve tried to minimize any discussion of enrollment loss and avoid too much focus on alternative sources of revenue,” LSU System President John Lombardi told Chancellor Michael Martin in a Jan. 29 e-mail obtained by The Daily Reveille. “Those issues are likely to prompt questions we’re not ready to answer given the variable nature of the budget conversations at the present time....”"

Read the full article:
What do you think? How big is the enrollment issue to you?

Wednesday, February 18, 2009

What's YOUR take on the budget situation?

Let's allow our readers to let their voices be heard! Post a comment: what do you think about the whole situation regarding higher education's place on the Louisiana budget chopping block?

Tuesday, February 17, 2009

University Sustainability Tip #1: Privatization/ Competitive Sourcing

This is the first in a series of commentary in suggestions for LSU and other university systems to become sustainable through even the most uncertain of economic times. Because we are unsure about the road that our governor and legislature will take to protect higher education, we should examine long-term solutions to the ongoing budget problems that fiscal mismanagement create.

Take control of the crisis by urging university administration and our legislature to promote sound budgetary policies that save the students and taxpayers money!

A great way for universities to cut back spending and to save more than a few pennies is through privatization/ competitive sourcing. Simply put, privatization is the act of turning previously government-provided services over to private sector enterprises.

What does this mean in our higher education crisis? Instead of paying state workers to mow the grass (as an example), LSU can offer a competitive bidding process for different private companies to earn the contract. Oftentimes, this means doing the same job more cheaply, more efficiently and more quickly. Due to the nature of these contracts, the university could penalize a company for not completing a project in time. Additionally, this would stimulate our local economy by allowing small businesses the opportunity to grow.

Privatization would offer benefits to both the contractors and the customers, in this case, the university systems.

For more information about the privatization process, examples of its successes throughout the country and the enormous savings it provides, check out the Reason Foundation’s Privatization Center.

New Orleans City Business report -- LSU system waits to see how deep cuts will be

http://www.neworleanscitybusiness.com/viewStory.cfm?recID=32706

LSU system spokesman Charles Zewe projects that all departments will have to prepare for 18-30% cuts in the coming year. According to the story, each of the system's 10 colleges has already been asked to prepare a strategic budget in preparation, noting prioritized importance of programs. In the spirit of transparency, is this information available to LSU system students or the public? UNO's chancellor notes that cuts will be avoided in academics first and that their is a vested interest in higher education, especifically in times of economic trouble. All in all, nothing can be determined and no specific action can be taken until Gov. Jindal releases the executive budget ... so is it all just speculation?

Monday, February 16, 2009

BRAC head stresses higher ed importance

Let’s be smarter about cuts -- editorial

Houmatoday.com

It was just coincidence that a national teacher survey giving Louisiana a C- came out on the same day we ran a story about impending budget cuts to Louisiana’s higher-education system.

Coincidence or not, though, the two stories highlight a continuing need to improve education in Louisiana and a continuing willingness to make our colleges and universities take cuts when money gets tight.

The teacher survey, conducted by the National Council on Teacher Quality, rated the various states on their ability to hire and keep good teachers. It came out Wednesday.

Also on Wednesday, we ran a story detailing the effects of the $116.4 million cut the University of Louisiana System will undergo in next year’s budget.

The two stories weren’t related except that the matter of education was involved. Ironically, though, even as the state was told it wasn’t doing very well at attracting and keeping good teachers, our colleges were planning on cutting 1,500 jobs and 60 academic programs.

Clearly, higher education should be a public priority. Our colleges and universities train the next generation of leaders who will enter every field of endeavor, including education.

Cutting the money going into education -- the preparation of our future -- is counterproductive to any sort of long-term plan for the state.

Officials with the University of Louisiana System have estimated that the cuts on the table now could lead to 12,000 students leaving school.

That is a scary thought if only because young people trying to position themselves for success in the future deserve our encouragement and support. Their success will go a long way toward determining the future outlook of the entire state.

At Nicholls State University in Thibodaux, the cuts forced on the system this year have already led to reduced course offerings and shortened library hours, direct components to our students’ ability to succeed.

Our institutions of higher learning represent a significant investment. They take up a large part of the state’s budget.

But they are investments that return education. They turn out teachers, writers, mathematicians and judges.

More importantly, they represent an investment in our future. Making massive cuts to education might make sense on a written budget, but any concerted effort to bring our state into a better future must include adequate funding for our colleges and universities.

We urge our state leaders to take a long, hard look at state spending priorities and to make sure they are in order with our society’s goals.

If our colleges face disproportionately large cuts, it might be a sign that our priority system as a whole needs an adjustment.

While money is so tight, this could be the best possible time to look again at those priorities.

Editorials represent the opinions of the newspaper, not of any individual.

Another state's response


“How can you have prosperity by cutting higher education, the road to prosperity? I just don’t get it.”- UNLV Faculty Senate Chair and economics professor Nasser Daneshvary.

Sound familiar? Check out Nevada students' response to major higher ed cuts.

Is the sky REALLY falling?

Ok, so there is some legitimacy to budget cutback claims. Certainly, there is a distinct possibility that there will be some belt-tightening, but while everyone is running around claiming that the sky is falling, let's examine what's really happening. It is my sincere hope that those reading this blog are able to thoughtfully discern what is real and what is sensationalism.

First of all, in terms of political expediency, does it make any sense for Governor Jindal to let LSU (or higher ed in general) tank in the state of Louisiana? Absolutely not. This Republican wonderboy has aspirations of being president (no secret there) and enjoys the backing of big-time conservative leaders, like Rush Limbaugh and Grover Norquist. Imagine trying to run for president with that skeleton in your closet. Simply put- it's not going to happen. Any smart politician will not let it. And Jindal has proven to be one of the smartest in the bunch. At least from Louisiana, anyway.

Secondly, the ongoing love affair between the Louisiana Legislature and LSU will not be soured. They enjoy their box suites and LSU enjoys getting the OK from the legislature for tuition and fee increases year after year. 

Third, does anyone honestly think that a legislature, probably half-filled by LSU grads, would let LSU crumble? If they're trying to ensure incumbency, is it not a threat if their home districts are angry about their inability to adequately fund local university systems? 

I'm not saying that there won't be cuts. There probably will be. And I mentioned before, LSU (and probably other university systems too) could probably learn to budget better without spending $1.3 million on office supplies each year. Our university family, just like every other in the country, must live a little more frugally during this economic hurdle. Learning to say "No, I don't need this _________," (insert conference, stapler, university vehicle), will be the first exercise of higher education self-control.

And as the flagship university, isn't it time we set an example?

It's easy to get caught up in the sensationalism in fear. We are threatened with class offerings being cut back, teachers losing their jobs and our university going to shambles. But we need to give ourselves some credit here- we are a good school and we are of value. And others see that and are trying, behind the scenes and on podiums around the state, to find a practical solution.

Don't act desperate, LSU. It's really not very becoming of you.

Sunday, February 15, 2009

$587M stimulus share for education not to be taken as a sedative

Please read the Associated Press' article on Louisiana's share of the recently-approved economic stimulus package, in the previous post, and pay special note to all notes regarding education. Also note the voting tally by Louisiana's Congressional representatives. I'll also supply a link here (whichever you prefer):

Nola.com (Times-Picayune)
The Daily Reveille

Keep in mind that these numbers should not be taken as a tranquilizer or as set in stone. There are several scenarios and factors to keep in mind, including:

1) The state may not include this money in its budget, a possibility considering the similar stance taken by Mississippi's governor and the fact that most of La.'s Congressional contingent opposed the stimulus as it was written;

2) The consistently inconsistent nature of our country's economy and the increasing trend of government-funded bailouts;

3) The fact that the state MAY receive $587 million to alleviate educational cuts is not an assurance that it will; and

4) The fact remains that Louisiana has several educational institutions to support, and that all are facing budget cuts, and LSU A&M is certainly not guaranteed to receive anything close to the full amount. This same item should concern each individual institution who has a seat on the chopping block.

Going back to an e-mail Chancellor Michael Martin sent to the LSU community on Feb. 6, our main campus faces a maximum budget cut of about $72 million, as part of a maximum cut for the entire LSU system of $209 million. The minimum cut would still be at about $43 million for LSU A&M (coupled with the already-made cuts, mandated by the governor, at more than $10 million), which is still an enormous amount of money, and would still pose tremendous harm to the integrity of the institution.

It may not seem too difficult to just to give our campus enough money to offset all these proposed cuts, but nothing is ever simple. How often do you see decision-makers spurn the obviously correct solution? AND keep in mind there are several other campuses across the state in need of these funds as well, and each will fight aggressively to keep itself intact.

Do not feel placated by the threads of e-mails discounting the possibilities of maximum cuts. Do not be placated by the figures you see in the headlines and the titles of this post. Do not let your guards down until the situation has been completely resolved, because there are always curveballs to be thrown and plot twists to emerge.

LSUA defended: Comments about cutting college anger local supporters

Town Talk staff • February 14, 2009

Remarks made Thursday in Baton Rouge targeting the four-year status of Louisiana State University at Alexandria have local supporters defending the institution.

Both Sally Clausen, the state commissioner of higher education, and Senate Finance Chairman Mike Michot, R-Lafayette, mentioned LSUA during a meeting about state budget cuts and possible solutions. Gov. Bobby Jindal's office has warned state colleges and universities that it may be necessary to cut $212 to $382 million -- about 12 to 30 percent -- for the fiscal year that begins July 1.

Michot, according to The Advocate in Baton Rouge, said it was wrong for the Legislature to make LSUA a four-year institution.

Clausen mentioned LSUA when asked for specifics on changes expected to be unveiled on Monday during the Louisiana Board of Regents meeting.

"I think you need to take a look at what you did in Alexandria," Clausen was quoted in The Advocate story.

The rumblings from Baton Rouge didn't sit well with Charlie Weems, who played a large role in LSUA's transition to a four-year university.

"It's a shame for them to be so short-sighted," said Weems, a member of the LSUA Foundation board of directors and former LSU board of supervisors member. "I would like for them to explain that to the 4-5,000 students up here that would be a black-hole" for higher educational opportunities.

"They are dead wrong about it. That would be a terrible mistake, in my opinion."


Find the rest of this story here.

La's share of stimulus pegged at $3.8 billion -- Saturday, Feb. 14

$587M tabbed to help avoid cuts to education

Melinda Deslatte
The Associated Press
Published: Saturday, February 14, 2009
Updated: Saturday, February 14, 2009

Louisiana stands to receive an estimated $3.8 billion for education, health care and other services from the $787 billion economic stimulus bill that passed Congress on Friday.

Among the largest pools of money are $1.7 billion for Medicaid, $587 million to help the state avoid cuts to education programs and $455 million for road and bridge work, according to data from the Federal Funds Information for States, which was tracking the legislation for both the National Conference of State Legislatures and the National Governors Association.

The money will flow to the state over two to three years.

Louisiana officials are grappling with how the dollars can be used — and which pieces might help the state close a gap in next year's budget, which is projected to include $1.2 billion less in state general fund income than this year. The new fiscal year begins July 1, and lawmakers will craft that budget in the regular session that begins in April.

Gov. Bobby Jindal said he isn't sure the state will take all the money it's eligible to receive, depending on the strings attached.

"We're going to be looking very carefully at the restrictions and conditions attached to these dollars and programs before we recommend that we include those dollars in our budget. And I would certainly expect the Legislature to do the same thing as they review our budget before any of these dollars can be spent," Jindal said this week.

On Friday, the U.S. House approved the spending and tax cut package, which supporters said would help create and retain jobs and keep the country from sliding deeper into a recession.

The U.S. Senate approved the measure Friday evening.

Louisiana's senators split their vote: Democrat Mary Landrieu supported the measure; Republican David Vitter opposed it.

Only one of Louisiana's seven congressmen, Democrat Charlie Melancon, supported the measure.

"With so many people hurting, we can't afford to sit back and wait for the perfect solution to come along," Melancon said. "We must take bold action now to stop the downward spiral."

All the state's Republican congressmen — Rodney Alexander, Charles Boustany, Anh "Joseph" Cao, Bill Cassidy, John Fleming and Steve Scalise — voted against it. Republicans said the package contained too much unnecessary spending and not enough tax breaks.

"Liberal spending pet projects fail to create long-lasting, good-paying jobs. Rather, this bill creates thousands of new bureaucratic jobs, which will slow our system down even further," Boustany said in a statement.

While several states have tapped "czars" or hired outside help to oversee their stimulus spending, it was unclear Friday who would guide the spending in Louisiana.

Before many of the dollars can be spent, the Louisiana Legislature or the Legislature's joint budget committee will have to approve the spending. Some of the dollars will flow directly to local government agencies, however.

According to the preliminary review released by the Federal Funds Information for States, Louisiana could receive:

—$1.7 billion for the state's Medicaid program.

—$587 million in education dollars to help prevent layoffs and cutbacks.

—$130 million in flexible dollars to help stave off budget cuts.

—$455 million for road and bridge work.

—$269 million for high-need schools.

—$197 million for special education.

—$77 million for transit projects.

—$72 million for clean and drinking water projects.

—$53 million for state and local law enforcement to hire officers and purchase equipment.

—$27 million for homelessness prevention.

—$16 million for the Head Start program.

Saturday, February 14, 2009

Colleges coping with cuts

By Icess Fernandez • http://www.shreveporttimes.com/article/20090213/NEWS04/902130330/1063 • February 13, 2009 2:00 am

With the economy in flux, funding for higher education from state government isn't looking too good in Louisiana.

It isn't looking good in other places either.

Most Southern states had midfiscal year cuts to their budgets. Colleges and universities in 10 out of 16 states took hits, according to information collected by the Southern Regional Education Board.

And it's only going to get worse.

"In the 30 to 35 years I've been in higher education, I haven't seen it quite this bad," said Gale Gaines, vice president of state services for the Southern Regional Education Board.

Louisiana's higher education system hasn't been immune to the economy's spiral. After sustaining midyear cuts of $55 million, campuses are seeing fewer courses taught with more students sitting in classrooms. Adjunct faculty was cut on some campuses and travel was frozen for faculty and staff.

But next fiscal year, more cuts are on the way.

In January, the Louisiana Board of Regents was told to prepare for a budget decrease that could be anywhere from $212 million to $382.2 million. The LSU system announced additional cuts recently for its campuses in an attempt to trim $175 million from its budget. At schools like LSU-Shreveport, that means as many as 64 faculty and staff positions could be eliminated.

What Louisiana has seen is common to other states, Gaines said.

"Anecdotally, I've heard of layoffs, re-educated class sections, reduced the entering freshman class, furloughs," she said. "In general, institutions are trying to protect instruction as much as they can."

But it's not all bad news out there, said Jeff Stanley, senior policy analyst for the State Higher Education Executive Officers, a national organization that represent statewide higher education governing and coordinating boards.

The group is in the middle of conducting a survey of higher education funding. Although the group is in the early stages of its work, they know of only a handful of states that have increased their funding for colleges and universities. Of the surveys they have received so far, no state has increased its funding above one percent, Stanley said.

"So far only a handful have released their budgets," he said.

Around the nation:
-In Missouri, Gov. Jay Nixon vowed to keep higher education funding static as long as university officials did not raise tuition or fees for the 2009-10 academic year.
-Maryland Gov. Martin O'Mally has a proposal to fully fund his state's higher education system and set aside money for the university system to freeze tuition. The freeze would be in its fourth year.

Friday, February 13, 2009

Butchering Our Future

BusinessReport.com

Butchering our future

By JR Ball

Monday, February 9, 2009

Bobby Jindal repeatedly has told us the major priorities of this state—as well as his 1-year-old administration—are, in no particular order, 1] improving the quality and funding of higher education, including university-affiliated research facilities like Pennington Biomedical, 2] building the foundation for and growing a knowledge-based economy, and 3] stemming the 20-plus year mass exodus of our most educated and most talented young people.

The three are inescapably linked, and there’s no debate that all must happen [along with improving our failing K-12 public education system) if Louisiana is to have any hope of being competitive in a fast-changing global economy.

How big a role this state can realistically play on the world’s economic stage is a matter of debate. What’s certain, however, is our failure to reverse decades of neglect, denial and ambivalence toward higher education, a knowledge-based economy and retaining and attracting highly educated young people will lead to an escalation in already alarming poverty numbers and almost complete economic irrelevance. In short, Louisiana becomes even more of a welfare state than it is today.

Jindal, the wunderkind governor who many believe is destined to become president, knows this; heck, he’s even said it, albeit in a kinder, gentler, politically correct way.

So why doesn’t Jindal appear more concerned about the academic Armageddon that will play out if the state’s colleges and universities are forced to take a $212 million to $382 million budget hit?

Maybe he is as nervous as an LSU fan on National Signing Day, but his cool, and an ample supply of Dry Idea deodorant, never lets us see him sweat.

Nevertheless, anyone and everyone who sucks the polluted air in this state ought to be screaming in budgetary outrage.

How does the Jindal administration expect LSU to retain its nascent Tier 1 status if the system has to absorb a $175 million cut, $60.2 million coming at LSU’s Baton Rouge campus?

Granted, those are worst-case numbers and with the state facing a $2 billion shortfall every institution has to accept some cuts, but why are LSU and higher education getting butchered?

If the answer is, “There’s no choice, almost everything else in the budget is Constitutionally protected,” then what’s being done to start “un-protecting” some things? If Jindal won’t call a Constitutional convention, who, other than Rep. Franklin Foil and his gang of legislative allies, is actually working on something to right this decades-long wrong?

Who knows, maybe Jindal is counting on a plan he doesn’t support—President Barack Obama’s spending-spree-disguised-as-a-stimulus-plan—to solve the state’s looming fiscal crisis? Louisiana and its local governments, after all, are in line for as much as $3.1 billion.

Jindal says improving higher education, building a knowledge-based economy, and retaining and attracting smart young people is a top priority. OK, well what’s the plan? Where’s the strategic vision? Jindal is a McKinsey alum and lover of bullet-point plans, so where’s the one addressing this state’s long-term economic life?

On the same day LSU President John Lombardi was releasing an ominous 100-page worst-case scenario [detailing 2,000 layoffs, losses of program accreditation and the gutting of almost everything that doesn’t serve the system’s core academic mission], Jindal was in North Carolina bemoaning the woes of the national Republican Party and talking about family values. The next day there was still no plan, but the governor was in Lafayette and Monroe detailing his plans to crack down on sex offenders in the upcoming legislative session.

Who’s not for cracking down on sex offenders—other than sex offenders—but I’m thinking the governor ought to give some attention to a little something I like to call our economic future.

Without question, the flagship university’s dire budget reduction plan assumes every worst-case scenario and is one-part reality, one-part public relations and two-parts a shot across the administration’s bow. Still, very real cuts are coming and the damage to this state’s long-term economic growth could be devastating.

Jindal is a smart guy, so maybe he knows something the rest of us non-Ivy League educated folks don’t? If so, I’m saying it’s time for Jindal to give the rest of us a sneak peak at his brilliance.

Our future depends on it.

Effects of the Federal Stimulus Package

Looks like the federal stimulus package could help. You guys might have already read this in a recent email from LSU Chancellor Mike Martin.

"...$53.6 billion in the state fiscal stabilization fund, approximately $39.5 billion is dedicated to public education, both K-12 and higher education. The bill requires states to use federal resources to bring public higher education back to the higher of either the FY2008 or FY2009 level. When calculating the level of state support for state FY2008 and FY2009, the legislation explicitly excludes tuition and fees paid by students. Federal funds would also be available for state FY2009, FY2010, and FY2011.

Education infrastructure language was deleted during the negotiation of the conference report, but some stabilization funds may be accessible for infrastructure needs.

As we learn more about the effects of the stimulus package on Louisiana and LSU, we will let you know."

What do you think the federal bill will really do for LA higher ed?

Jindal's Options

In this article from Forbes.com, Jindal talks about the need to perhaps loosen the protection over other areas in the state budget so higher education and health care wouldn't take the worst of cuts during times of deficit. Would this take a state constitutional ammendment?

http://www.forbes.com/feeds/ap/2009/02/13/ap6050334.html

Consolidation Might Be a Good Option

Legislators consider college consolidation to save money

By JORDAN BLUM
Advocate Capitol News Bureau
Published: Feb 13, 2009 - Page: 6A - UPDATED: 12:20 a.m.

Lawmakers on Thursday discussed the possibility of restructuring higher education and consolidating some colleges.

A recurring assessment voiced by some legislators was that it was a mistake to morph LSU at Alexandria, called LSU-A, from a community college into a four-year university in 2001.
State college leaders met with the state Senate Finance Committee Thursday to discuss the budget cuts and possible restructuring.

State Sen. Nick Gautreaux, D-Meaux, said the time is now for seriously discussing consolidating schools and reorganizing college systems. “The reasons these systems were created was for power – political power,” Gautreaux said. “People in this state are tired of the rhetoric from everybody.”

Citing a potential $1.2 billion budget drop in state general fund revenue, the Governor’s Office alerted colleges of the possibility of cutting $212 million to $382 million for the upcoming fiscal year that begins July 1. That roughly represents a 12 to 30 percent range of the state’s $1.4 billion appropriation to colleges.

State Commissioner of Higher Education Sally Clausen said she is willing to make hard decisions on possible restructuring. “But it is only irresponsible for me to recommend it when we don’t have a number,” Clausen said.

Gov. Bobby Jindal’s executive budget with recommended cuts is due March 13. Jindal said he does not expect colleges will be cut as badly as 30 percent.

“The conversation will get very specific very fast once there’s a number,” said LSU System President John Lombardi. “You don’t want to target people you’re not going to actually have to kill.”
The saving grace for colleges may come from the federal government, legislators said.

Click here for full article- Legislators consider college consolidation to save money

Governor Jindal outlines six fiscal reforms (WAFB report)

By Tyana Williams (WAFB link)

BATON ROUGE, LA (WAFB) - As Louisiana legislators work to balance the budget, there's talk of closing or merging some of the state's four year colleges.

Chairman of the senate finance committee, Senator Mike Michot, says the state's community and technical college system is asking for $200 million to build new schools across the state. But he says higher education is already on the budget chopping block.

"We need to take the approach that everything is on the table," says Jindal. His slogan: It's a new day in Louisiana. And it may just ring true, saving health care and education from cashing out."

"Let's look at shutting down some of our smaller four year institutions," suggests Senator Michot, "and converting those to community colleges."

The senator says the state cannot continue asking taxpayers to foot the bill for 17 four-year schools, countless community colleges and techinical schools, especially after the community and technical schools have asked for $200 million to expand.

Jindal say his six-point plan would find savings in all areas, making government more transparent and accountable to taxpayers, eliminating money that is potentially wasted.

"One of savings DHH implemented," Governor Jindal explains, "eliminated travel funds in their budget for an advisory council that doesn't exist anymore."

Right now if the state faces a deficit, certain funds can only be cut by five percent every two years. Jindal wants that changed to 10 percent every year.

"If we had the ability to cut 10 percent every year," Jindal says, "we could've reduced up to $338 million in mid-year reductions."

Jindal says every year school districts ask for money to help at-risk, poor, and gifted students, but the state never knows how the money helps.

His reform would require schools to report how the funds are used, making the information available on the internet.

The legislature has to vote on the reforms before anything is changed.

As far as the stimulus package is concerned, Jindal says they'll look at how those dollars will help the state, and see what strings are attached before they decide whether or not to use it in the budget.

Jindal has outlined the following six fiscal reforms:

Increase the annual five percent cap on cutting dedicated budgetary units to ten percent
-Eliminate the two-year limit on dedicated fund reductions
-Enhance dedicated fund accountability
-Enact a four-year sunset for all statutorily created funds
-Ensure that public education spending is accountable, transparent, and targeted to areas that improve student performance
-Create a user-friendly website to post school information for parents and the general public

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So this appears to address the transparency issue, but is that acceptable at the expense of CLOSING or MERGING some of the state's four year colleges??

Thursday, February 12, 2009

T-shirts, eh?

I know LSU typically disapproves of USC as far as football goes, but do you think they were on to something with these T-shirts?

Budget cuts affect more than just LSU

The budget cuts could hit the LSU system hard, but the problem extends to all public universities in the state.

The University of Louisiana System could see 60 academic programs shut down in its eight universities, including UL, Louisiana Tech, Nicholls State and Southeastern.

The University of New Orleans alone may have to cut ten academic programs, along with sports programs and all UNO funding for the National World War Two Museum.

http://www.dailycomet.com/article/20090211/ARTICLES/902119906

http://www.wwltv.com/topstories/stories/wwl020408tplsu.1b7b45e4.html

Take a short poll; make a difference!

Please take this eight-question poll regarding LSU budgetary behavior and transparency. Your opinions can help shape the long-term response to periodic budget short-falls and economic difficulties.

The College, Cost and Crisis Conversation

With the current stimulus agreement in Congress making headlines across the country and in other areas of importance like the Midwest, it's not entirely shocking that it's one of the top subjects on people's minds and in their conversations.

Of particular note is the awareness many Louisianians have of the dire need the state has for additional funding for higher education, coupled with the knowledge they have of the cuts for educational funding recently made by Congress to this high-profile stimulus.

The conversation is popping up everywhere on LSU's campus: faculty offices, dining halls, the Student Union, organizational meetings and the LSU Student Senate, which last night expressed its strong disagreement with the exclusion of education from the stimulus and urged Louisiana's congressmen and women to vote against it.

I myself just left the UREC Student Recreation Complex and was delighted to hear multiple groups of people - across all ages - discussing the education-specific details of this stimulus and this crisis.

I strongly urge all of you to do the same: to foster awareness of this situation, to generate the buzz and conversation and to seek to enhance your own understanding.
While the number of students attending college increases, the state wants to cut the budget for high education by 30%. 

How can the universities provide a quality education for an increasing number of students with a decreasing budget?

Some Colleges See Rise in Spring Enrollments, The Advocate, February 10, 2009

2/4/09- Washington Times- Steven Pearlstein- Stumbling on Their Sense of Entitlement

Steven Pearlstein, a commentator for the Washington Times, examines the role of many political groups within the public and private sectors and their participation in our "economic crisis." The article, found here, includes this excerpt about how the mismanagement of higher education funds across our country drains our budget:

"Is it too much to ask those college presidents who are about to be the beneficiaries of big increases in student aid and tuition tax credits to finally embrace the productivity revolution and find a way to use technology and new teaching techniques to lower the cost of education?"

This deals very intimately with the issues we face here in Louisiana. Everyone knows that a solid higher education system is necessary for keeping young professionals in Louisiana and stopping our growing out-migration of graduates. A strong flagship university, like LSU, represents a strong commitment to higher education.

 The real issue is "chicken-or-egg" in nature. Should the schools be financially rewarded for achievement or should the schools be expected to succeed only if they are given substantial budgets? Should taxpayers fund higher education simply because it exists, or should they demand productivity and the rights to oversee the process?

Wednesday, February 11, 2009

LSU Braces for Budget Cuts


USA Today: Big cuts loom for education: 574,000 jobs at risk

Big cuts loom for education: 574,000 jobs at risk

(February 11, 2009)

By Greg Toppo

The first look ever at how the USA’s economic downturn could affect education finds that states probably will cut an estimated 18.5% of spending over the next three years, an $80 billion drop that could eliminate 574,000 publicly funded jobs.

The analysis, by Marguerite Roza, a senior scholar at the University of Washington’s Center on Reinventing Public Education, comes as congressional lawmakers begin working out a compromise on the economic stimulus bill. The Senate approved an $838 billion package Tuesday; the House of Representatives earlier approved an $819 billion plan.

The new analysis “obviously confirms what we have feared: that there is so much at stake now and we’re really trying to stave off catastrophe,” U.S. Education Secretary Arne Duncan said.

The projection doesn’t account for the effect of stimulus money, but Roza says the reality could actually be worse than she predicts, because she didn’t include dropping local funding; it’s too difficult to track at the moment. “We know for sure that local money is going to go down,” she says. “We just don’t know if it’s consistently or erratically.”

Duncan, who talked about the need for the congressional stimulus during a visit to a high school Tuesday in Virginia, says Congress has a “historic opportunity” not just to keep educators on the job but to improve education nationwide.

“We have to keep people employed and we have to educate,” he says. “I’d argue that we have to educate better.”

Publication:

This comic from Sunday's Advocate pokes fun at LSU's priorities.


LSU Daily Reveille: "Our View: Jindal must accept federal bailout money to aid economy"

Times are difficult, and the path America finds itself on is treacherous. So we should tread with a steady step.

When the money from the stimulus package is handed out, 50 governors are going to have to make a choice: Take the money and be indebted to the federal government, or plow through the economic recession without aid.

The answer — at least for Louisiana — is to take the money.

Mississippi Gov. Haley Barbour has heavily opposed the stimulus package and is now rumored to be considering rejecting it for his state.

Louisiana Gov. Bobby Jindal will be facing a similar choice in the upcoming weeks.

Without question, Jindal finds himself in a tricky spot. A life raft, regardless of source, seems impossible to pass up in times as difficult as these.

The stimulus package will contain money the state needs to back higher education, something that affects all college students — and even high school upperclassmen — right now. The package could reportedly bring $2.5 billion to Louisiana during the next two years to help offset proposed budget cuts.

That’s money the state simply should not turn down.

But let Jindal remember and consider the classic economic saying, “There’s no such thing as a free lunch.”

We urge Jindal to heavily consider all potential consequences of accepting the stimulus package. It is easy to be short-sighted and rash in tumultuous times.

The recession has been with us for a while now. A few more weeks of consideration will do nothing more than ensure the right decision.

But, as it looks now, Jindal has no choice but to accept the bailout money.

http://www.lsureveille.com/opinion/our_view_jindal_must_accept_federal_bailout_money_to_aid_economy-1.1370320

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Contact the Editorial Board at editor@lsureveille.com

Proposed Budget Cuts Offer Transparency Incentive for Higher Education

With threats of 30 percent budget cuts looming large for the higher education systems of our state, universities are uniquely poised to garner substantial political leverage by proving to taxpayers that they effectively manage their current finances.

An executive order signed early in Governor Jindal’s administration called for transparency in all financial dealings in each and every agency and department in state government. Unfortunately, these LaTrac reports neglect to completely disclose the transactions of one of the state’s largest entities- public higher education.They offer simple groupings and "summary data," but no individual expenditures.

LaTrac is an exhaustive examination of the intricacies of each department’s budgets and expenditures. Why should the university systems, also funded by those same tax dollars, enjoy exemption from public scrutiny? If anything, the universities should prove to the public that they are behaving as good stewards of public money and most importantly, keeping focused on educating.

If the university systems continue to claim that they have managed their funds correctly, why would they resist publishing their ledgers in a dynamic, searchable format? The technological infrastructure is already in place. All they need is the will.

Because the university systems in Louisiana will unlikely utilize such a good faith measure willingly, the legislature should demand a system of financial transparency initiatives to accompany funding legislation. This is not to say that those in favor of this transparency would fight for it and begrudgingly fund higher education as a trade off, but instead, let this serve as an indicator of the fiscal diet higher education system should employ.

This is necessary due to the fact that universities, with LSU leading the way, consistently spend money like drunken sailors at the ports of call of Office Depot and American Airlines. When the end of the year rolls around, departments send student workers to buy copious amounts of sticky notes or ship off tenured professors to a new exotic location for “research” or a “conference.”

And why does this happen? Simply, department heads worry that if they live within their means during the school year, as they should, they will sustain budget cuts. Students seem to get lost in the midst of the taxpayer-funded plethora of file folders and jet-setting to conferences all over the world. And then they wonder why students vote down a modest $2 fee increase to keep activity accounts afloat or become outraged at the mere mention of tuition increases.

The alarming issue posed by these proposed budget cuts is not that they might happen. It is the fact that higher education in Louisiana is either unable or, most likely, unwilling to trim the fat without spoiling the meat. And despite the public awareness of these nasty spending habits, legislators continually green-light higher education expansion projects with no oversight as to their efficiency or success.

If the universities believe that the governor should tap into our “rainy day” fund to save higher education from a short-term hurdle, they need to prove that they’ve changed their ways. Spending legislation to supplement higher education should be coupled with compulsory financial transparency for all systems in the state of Louisiana to confirm their days of fiscal mismanagement are over.

After all, if they’re as honest as they say they are, they have nothing to lose… and so much money to gain.

30 lose jobs at Tech; no layoffs announced yet for ULM, Grambling

By Stephen Largen • slargen@monroe.gannett.com • February 10, 2009

Louisiana Tech University laid off about 30 workers last week because of statewide mid-year budget cuts and concern about the looming budget cut for the next fiscal year.

President Dan Reneau said most of the workers laid off were still employed on a probational basis, meaning they had worked less than six months. The workers, who were spread across all departments, were mostly let go because of the budget cuts, not because of performance, Reneau said.

"It will help the mid-year cuts, and it's aimed at next year, also," Reneau said.

Reneau said such a mass layoff had not taken place since the late 1980s.

Tech's share of the $55 million mid-year cut for all the state's universities was $2.65 million.

The University of Louisiana at Monroe has not done employee layoffs in response to the mid-year cuts, though the school did freeze some open positions and other spending. ULM's share of the mid-year cut was $2.38 million.

A spokesman for Grambling State University was not aware of any layoffs at the school in response to the cuts. GSU's share of the mid-year cut was $1.33 million.

For the next fiscal year that starts July 1, the University of Louisiana System, the largest university system in the state with eight universities, could face a budget cut of 15 percent to 28 percent. The worst-case scenario would be a cut of $116.4 million.

According to a preliminary analysis of the impact of the cut, a $116.4 million reduction would result in the loss of approximately 60 academic programs, 1,500 jobs, 3,000 furloughed employees and a possible drop in enrollment of 12,000 students.

Reneau said more layoffs could follow at Tech if a deeper cut is made.

The projected cuts are part of a preliminary planning exercise by Gov. Bobby Jindal's administration and are contingent upon a final budget.

"The state is facing significant financial challenges, and higher education must do its share," UL System President Randy Moffett said in a prepared statement. "However, in these tough financial times, Louisiana must invest in its people, and higher education is the key to the state's long-term economic prosperity."

Tuesday, February 10, 2009

Budget Cuts Looming - AP Editorial

Melinda Deslatte / Associated Press

BATON ROUGE, La. -- Louisiana's large budget shortfall could hammer public education and health care programs next year, as the Jindal administration asks for proposals that could eliminate up to $950 million in health and education spending.

Though a recent round of midyear budget reductions caused few noticeable ripples to students and health care patients, the cuts being considered for the new budget year that begins July 1 could be dramatic to cope with a drop in state general fund income pegged at $1.2 billion.

The governor's budget crafters sent out letters this month to state offices that outlined ranges of budget cuts for which they should offer proposals. The maximum numbers for health care and education were hefty: $538 million for education and $412 million for health care -- of that, more than $380 million each for public colleges and the state health department.

Gov. Bobby Jindal's budget officer, Commissioner of Administration Angele Davis, said that the figures were preliminary and don't necessarily reflect what cuts will be suggested when the governor's 2009-10 budget proposal is delivered to lawmakers in mid-March.

Davis' office gave departments a range of possible cuts and asked them to prioritize their programs, describing what should be slashed first and then what should be stripped from spending as the cuts get more severe. Davis said those answers will help the administration make the decisions of which programs are expendable.

"Some of these cuts are going to be tough cuts to make, but there are no indications that I'm aware of that our revenues are going to go up," she said.

Jindal must present his budget proposal to lawmakers by March 13, and the Legislature will hammer out the final spending plan, which is expected to be significantly less than the $29 billion-plus budget for this year.

Lawmakers are considering tapping into the state's "rainy day" fund and other pots of unspent state money to fill gaps next year, but even that wouldn't fill the entire shortfall. State officials also hope that economic stimulus proposals in Congress could provide aid to Louisiana and that the economy will improve and boost state revenue collections.

But for now, the administration is working with the worst-case scenario, and state officials say the cuts being considered would force grim choices in their agencies, including significant layoffs and sharp reductions in services.
Because health care and higher education are the largest areas of state discretionary spending, they are the most vulnerable to budget cuts.

LSU Chancellor Michael Martin said he's considering a proposal to boost student tuition and fees, perhaps based on type of curriculum, as a way to help offset some cuts. But he said that won't be nearly enough.

To cope with the rest of a cut that could be as high as 14 percent of the budget for LSU's main campus, Martin said he's looking at hundreds of layoffs, major program eliminations, larger class sizes, shortened library hours and an array of other reductions.

"This is a big hole in the hull of the flagship institution, and I'm not sure the pumps can operate fast enough for us to keep the ship afloat," Martin said of the range of possible cuts.

In the Department of Health and Hospitals, a $381 million cut could multiply into an even larger hit.

The state uses its money to draw federal matching dollars for the state Medicaid program for the poor, elderly and disabled in a nearly 3-to-1 match. Medicaid is the largest portion of the health care budget, so the cut for which DHH was told to prepare could top $1 billion with the loss of federal money.

Joe Donchess, executive director of the Louisiana Nursing Home Association, said he worried that could mean large cuts to the money the state pays nursing homes to take care of Medicaid patients.

Donchess said he's hopeful about a congressional bill that would provide additional Medicaid money to states. He said if DHH is forced to take the cut that is in discussion now, it would be devastating to health care services for the most vulnerable Louisiana residents.

"This is potentially one of those death-knell types of budgets," he said.

A handful of offices weren't asked to draw up budget cut recommendations.

Davis said the governor wants to protect the state's free college tuition program, known as TOPS, and also won't seek cuts to the state ethics board or the Division of Administrative Law, which handles ethics violation cases.

Jindal made ethics a centerpiece of his campaign for office and successfully pushed for an overhaul of state ethics laws when he took office, and Davis said he wants to protect ethics enforcement despite the tight budget.

Meanwhile, the governor's budget writers also are looking at undoing some of the restrictions that lock up certain parts of the budget and keep them safe from cuts. Davis said the governor may ask lawmakers to free more areas of spending to spare the most severe reductions from falling solely on education and health care.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

Thursday, February 5, 2009

LSU's System Response to the Division of Administration's Budget Reduction Exercise

"Until the final budget reduction is known it is not possible to anticipate the impact to the campus performance indicators. However, this much is known. Based on the Division of Administration's directive to prepare for a $71.9 million budget reduction for LSU, the consequences will be felt by students, faculty and ultimately the state's knowledge based workforce.

The budget reduction will reduce the number of instructional and research faculty and as a consequence require the remaining faculty to increase their teaching load each semester. The reduction of faculty will also mean many classes will be taught by adjuncts and part time instructors...Accreditation issues may surface with SACS and other governing agencies relative to the reduction in full-time faculty...

Students will experience large class sizes with faculty reduction. To remedy the decrease in class offerings with the loss of faculty many classes will need to be offered using adjunct faculty...[and] they will only be able to teach in the late evening and on weekends...the time to degree attainment will increase significantly."