Summary of Budget July 1, 2008

Transcription

1 Summary of Budget July 1, 2008 Beginning State General Fund $93,147,061 Adjustments Midyear general fund reduc on $( 3,801,148) Supplemental appropria on (Special Session) $ 424,285 Ending FY 2009 State General Fund $ 89,770,198 Reduced state support work force by 10.4% and opera ng budgets Suspended general employee merit increases for faculty members, classified staff, and professional staff Re rement incen ve plans were implemented to obtain savings; 58 employees re red under this plan Moved Extension Specialists to research sta ons housing their commodity programs or area of exper se Agent specializa on/mul -parish assignments resul ng in a decreased workforce with expanded responsibili es Personnel Informa on FTE

2 Summary of Budget July 1, 2009 Beginning State General Fund $86,472,279 Adjustments Legisla ve Appropria on Reduc on $( 3,297,919) Midyear general fund reduc on $( 5,946,138) Year End general fund reduc on $( 1,347,043) Ending FY 2010 State General Fund $ 79,179,098 Unfunded increased mandated costs of $3,838,538 Reduced state support work force by and opera ng budgets Suspended general employee merit increases for faculty members, classified staff, and professional staff Addi onal, re rement incen ve plans were implemented to obtain savings; 24 employees re red under this plan Reduced motor pool by over 10% throughout ins tu on Increased user-fees for selected services to boost self-generated funding for research and extension to be more self-sufficient Personnel Informa on FTE Reduc on of FTE

3 Summary of Budget July 1, 2010 Beginning State General Fund $77,959,827 Adjustments Legisla ve Appropria on Reduc on including execu ve restora on $( 1,219,271) Midyear general fund reduc on $( 9,007,261) Ending FY 2011 State General Fund $ 68,952,566 Unfunded increased mandated costs of $ 2,982,209 Reduced state support work force by 7.7% and opera ng budgets Suspended general employee merit increases for faculty members, classified staff, and professional staff Consolidated 8 Statewide Regions into 5 Statewide Regions reducing administra ve and support costs Implemented a hiring freeze requiring remaining employees to absorb addi onal du es Implemented out of state travel freeze on state appropria ons Personnel Informa on FTE Reduc on of FTE

4 Summary of Budget July 1, 2011 Beginning State General Fund $77,736,364 Adjustments Restora on of Mid-Year Cut $ 7,022,345 Preamble reduc on in OGB Benefits $ (674,699) Federal Re rement Cost (Removed from Schedule 18) $ 1,761,453 Midyear general fund reduc on $( 3,407,501) Unfunded increased mandated costs of $ 4,366,070 Reduced state support work force by 10.0% and opera ng budgets Termina on of programs and ini a ves at the Rosepine Research Sta on Termina on of programs and ini a ves at the Coastal Area Research Sta on Closure of Calhoun Research Sta on planned and implementa on started (delayed because of exis ng employee contracts) Suspended general employee merit increases for faculty members, classified staff, and professional staff Merged Family and Consumer Science unit with the 4-H Youth Development Department and renaming the merged department the Department of 4-H Youth and Family Development Con nued hiring freeze requiring remaining employees to absorb addi onal du es Personnel Informa on FTE Reduc on of FTE

5 Summary of Budget July 1, 2012 Beginning State General Fund $73,654,164 An cipated Adjustments Es mated General Fund Reduc on (3%) $ 2,209,625 Es mated Increased Mandated Costs $ 3,600,000 Scheduled closure of the Pecan Research Sta on Extension Service has a major focus to increase local support, that required mee ng with local officials in every parish. All parishes have achieved a level of 10% support with plans and ac ons to increase to 20% by July Addi onal Issues to Address Return $5 million in statutory dedica ons to general fund appropria on

6 Five Year Budget Overview

7 Focus on the Budget Since 2008, the Louisiana budget has continued to see shortfalls in revenue, which have had signi icant effects on higher education. As a result, the LSU AgCenter has experienced reductions in yearly state appropriated budgets, consistent midyear reductions and a year-end cut. The reductions over the past four years have made it dif icult to implement and maintain ef icient statewide operations in both research initiatives and extension programs. On December 16, 2011, the LSU System received notice to reduce $21.2 million from its current operating budget as part of a $50 million midyear reduction for higher education. This was a part of the overall $251 million de icit-reduction plan unveiled by Gov. Jindal s administration and approved by the Joint Legislative Committee on the Budget. The provisional distribution was a percent reduction of state general funds appropriations to all institutions within the LSU System. The LSU AgCenter s portion of the percent budget reduction of our state general fund appropriation is $3.4 million. To date, the AgCenter s state appropriation has been reduced by $19.5 million. This exceeds 20.9 percent of our state-funded operating budget since the beginning of 2008, and it has resulted in the elimination of more than 314 full-time equivalent (FTE) positions. In addition to these cuts to operational funding, we also have experienced continual increases in mandated costs without any funding to support them exceeding $11.18 million during the same time period. These include increases in health insurance premiums, retirement system premiums and Of ice of Risk Management premiums. These increased costs, compounded with a reduced budget, have required consistent reductions to balance our budget that has brought additional threats to the LSU AgCenter to eliminate long-standing research and extension programs in Louisiana. The LSU AgCenter s budget currently is composed of 67 percent state general funds, and the remaining revenue comes from selfgenerated funds, statutory dedications, grants, contracts and federal funds. This high dependence on state funding magni ies the effects of cuts to the AgCenter. Unlike most institutions in higher education, the LSU AgCenter receives no tuition from students. Without additional revenue to offset the lack of tuition (other campuses often use increased tuition and fees to help their budgets) and budget cuts, a reduction in the AgCenter s state operating budget has a more severe effect on the programs and initiatives provided for Louisiana.

8 Summary of Budget Reduc ons Since July 1, 2008 $93,147, Opera ng Budget State Appropriated Revenues (07/01/2008) $19,492, % Reduc on in Appropriated Budget (Since July 1, 2008) $11,186, % Mandated Costs Increases for FY 10- FY 12 $30,679, % Total Reduc on in Opera ng Budget since 07/01/2008 including Mandated Costs $62,467, % State Appropriated Budget for FY 12 adjusted for Mandated Costs