With the closure of a tumultuous legislative session, detailed state budget consequences on the university remain primarily unknown, although President John L. Crain believes budget cuts are not in sight.
The budget, known as House Bill 1, passed through the State Senate 37-1 and unanimously through the House with no representatives opposing the bill on the final day of the session. Lawmakers compromised on the $25.4 billion state budget for the upcoming fiscal year, which begins July 1.
A group of House conservatives known as the “fiscal hawks” originally objected to all use of non-recurring funds within HB1. However, the conservatives compromised during the last stages of the session and the bill now contains approximately $80 million in non-recurring funds according to Rep. Jim Fannin (D-Franklin).
Since the budget was passed, the university has still not been informed on particulars surrounding cuts and new funding, but in a letter to the campus, Crain explained vague findings in the budget which concluded the university does not anticipate to have its budget slashed, at least for now.
“While it could take several weeks for us to know the exact impact on our state funds for next year, the final state budget agreed to by legislators appears to avoid significant additional reductions in funding for higher education,” stated Crain.
The President’s letter was sent immediately following news of the state budget compromise. Nevertheless, the university’s ultimate numbers continue to be uncertain.
Projections for the university’s next fiscal year budget rely on details from the state budget. Director of Public and Governmental Affairs  Erin Cowser says speculation encompassing a release date on Southeastern’s budget “would be futile” because the university lacks specifics.
Also discussed in the letter is the university’s current ongoing budget struggle.
“Some of the steps used to balance our budget this year are not sustainable,” stated Crain. “In effect, our current budget reflects a structural deficit – the amount of revenues from normal recurring sources is less than the amount of normal recurring operating expenses.”
Deficits left due to the growing amount of expenses and shortage of self-generating revenue have similarly not been able to be addressed because of the unknowns regarding the state’s budget.
Few higher education impacts have been announced since the passage of the billion dollar plan. Reports claim new funding for Southern University campuses in New Orleans, Baton Rouge and Shreveport are within the budget.
Though there are many uncertainties around the state budget and the university’s budget, the university is aware that past cuts will continue to recur in the new fiscal year. According to Crain, decreasing the university deficit is the key to a viable Southeastern.
“This underlying structural budget problem, which has resulted from the cumulative reductions in state support over the last several years, will recur with the new fiscal year,” stated Crain. “Going forward, as we work to build our budget for next fiscal year, and plan for the future of the university beyond next year, we have to shrink this structural deficit to ensure the long-term financial viability of our institution.”
The adminstration has stated that they will report the nature of the budget as soon as the situation becomes clear.