Even as anticipated state-based revenues, a little from the general
fund but most of it coming from dedicated sources, increase somewhat, the drop
in federal funds, courtesy of the changing of the Medicaid disbursement
formula, totals even more meaning a budget about a billion bucks smaller, or
roughly 4 percent reduction. Naturally, the two areas seeing the most dramatic
changes are those whose funding makes up the vast majority of discretionary
general fund spending, health care and higher education – but in very different
ways.
Higher education sees a stunning over 70 percent drop in general fund
revenue, although when all means of financing are included it’s only about 7
percent (year-to-year; most of that already has been cut). Still, this
represents a tectonic movement in the philosophy behind funding, for it
represents the first overall drop in years – at $2.7 billion total funding is
about the same as it was in the last
year of Gov. Kathleen Blanco’s administration – with a massive shift in state
sources. In Blanco’s last year, the general fund contributed $1 billion more
than now, and self-generated funding (mainly tuition) and statutory dedication
(some
revenue from funds dedicated to higher education but mostly fund sweeps
from funds unrelated to higher education) have added back in half of that each.
From general fund money comprising nearly half of all spending on higher
education six years ago, it’s now only about a tenth. As a point of reference,
this means using as an example my home institution, Louisiana State University
Shreveport will be asked to derive about 70 percent of its revenue from tuition
and fees.