BATON ROUGE – Following the Senate’s debate on SB 335 today, Commissioner of Administration Angele Davis released the following statement, providing a clear picture of higher education funding currently in the FY 10 budget:

“As the state budget exists today, the House’s actions restored more than $100 million in originally proposed reductions to higher education, and this means the $219 million reduction number is now outdated.

“The total recommended budget for higher education in the FY 10 Executive Budget was initially $2.63 billion, a reduction of $219 million, or 7.7 percent, from the $2.85 billion existing operating budget for FY 09. Through amendments, the House added $24.1 million total means of financing, $50 million in contingency funding from the tax amnesty program, and $2.3 million in contingency funding from the Insure Louisiana Incentive Program Fund. Another $33.6 million is expected to help higher education through tuition increases. All together, these funds total $110 million for the higher education budget, which decreased their total funding reduction to $109 million, or 3.8 percent from the FY 09 existing operating budget.

“It is very important to make clear that where higher education stands in the budget today, their proposed reduction is down to 3.8 percent – a reduction from the originally proposed 7.7 percent. Additionally, it is important to note that higher education also has $1.63 billion in restricted funding available.

“To provide further perspective on the savings target higher education officials would need to find under their funding in the budget as it currently exists, we must remember that the entire state budget this year is facing a reduction of 9.8 percent, while higher education’s possible reduction now stands at 3.8 percent - less than half of the overall budget reduction target.

“We have also already announced our support to work with the Senate to ensure the House’s actions will aid higher education in FY 10. When Senators expressed concerns over the use of $50 million in tax amnesty funds because the money may not be available in time to help with the FY 10 budget, we supported the use of $50 million from the rainy day fund instead, to ensure this funding was readily available at the beginning of the fiscal year.

“As the debate on higher education funding continues, it is very important to recognize that this debate is centered around a 3.8 percent spending reduction for higher education, which is down from the initial 7.7 percent reduction (down from the $219 million original target). That is where higher education funding stands today – as the budget is currently drafted.”