UPDATE - SEE LATEST HGHER ED COMMENTARY ON THE DEAD PELICAN

www.thedeadpelican.com/2009/jr10.htm 

Let me start by plainly stating I believe it is beneficial to have a highly regarded university such as LSU in this state.  And LSU is not the only fine campus we have operating in one of our higher education systems.  I'm writing this commentary because I believe the taxpayers of this state are being misled in all the reporting and conversations about the higher ed cuts that may occur this year.  So with a mind to open and honest dicussion I present the following information to you.

For those not familiar with higher education in Louisiana, it is made up of three university systems, each with its own "Board of Supervisors".  Those systems are; 1) Louisiana University System (ULL, ULM, McNeese, etc.); 2) Southern University System (Southern, SUNO) and the largest 3) LSU System (LSU, UNO, LSUS, etc.).  The total budget for these systems combined will be approximately $2,700,000,000 (billion) this year.  That total budget number represents all monies the systems receive, including state dedicated dollars, federal dollars, tuition and self generated revenues, agency transfers, state general fund dollars, etc.  This is an important fact as you will see later.

Now some of you may think a part of the conversation should be the inefficiency and overlap created by having three separate boards running our universities.  Or that there must be some waste involved when we have so many campuses and very little interest in cooperation between the system boards because each protects its own "turf".  But those are matters for another day of discussion.  This commentary will simply look at the hard facts of the budget dollars involved in higher ed in this state.

For the sake of simplicity let's look at the budget for the LSU system the last several years.  The budgets of the other systems would reflect much of the same type of information.

The following is the budget for the entire LSU system by year.  These numbers were taken directly from the yearly legislature's appropriations bill HB1.  We'll start with 2003, the first year the budget for the LSU system exceeded a billion dollars.  The first number is the total budget followed by the dollar increase the following year and the associated percentage increase in spending.

2003 $1,050,558,160

2004 $1,172,080,737    +$121,522,577    11.5%

2005 $1,221,621,583    +$49,540,846      4.2%

2006 $1,295,766,419    +$74,144,836      6.1%   

2007 $1,442,849,290    +$147,082,871    11.3%

2008 $1,558,459,474    +$115,610,184     8.0%

And just to put a little more history to these numbers, in 2000 the LSU system budget was $743,846,447 so it more than doubled by 2008.  Do these figures surprise you as much as they surprised me?  Shouldn't it be plainly obvious that these budget increases are unsustainable?  Are we to accept that the higher ed budget should be doubled every eight years?

This is not the whole story.  The other two facts being unreported or twisted in this whole debate are the percentage of the higher ed budget which is actually being cut and the portion of the total budget the higher ed system generates for itself.  The real percentage the total higher ed budget is being cut is only about 6%, not the 20%+ number being bandied about in the media.  Currently the legislature is planning to cut $160M dollars from a total higher ed budget of $2.7B or 6%.  The percentage being cut is presented as being much higher by taking the $160M from the dollars allocated from the state's general fund appropriated by the legislature each year.  The general fund dollars received by higher ed make up about 43% of their total budget or $1.1B.  Where is the honesty in using that kind of math?  So the true picture of what higher education faces in this year's budget is an actual reduction in funding of 6% after increases of no less than 4% and as high as 11% over
the last five years!  How can any honest person declare that a "draconian" cut is taking place in light of these numbers?

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A REVIEW AND LOOK FORWARD FOR TULA

TAXPAYERS UNION OF LOUISIANA LEGISLATIVE AGENDA FOR 2009

 As all experienced business owners, and middle class families know too well, for taxpayers, a tax cut means more available capital to use to grow your business and savings.  Since its beginning in 2008, the Taxpayers Union of Louisiana ("TULA") has quickly become the most credible and effective organization in Louisiana that is focused on raising family prosperity and business prosperity through strategic tax-cuts, and reductions in overall State government. 

GROWTH OF TULA IN 2008:

The membership of TULA thAt now nears 150 throughout Louisiana, and continued growth is reflective of the positive protections that TULA is giving to the families and small businesses of Louisiana.  This growth will continue, with members' continued support and dedication to reform in Louisiana.

SUMMARY OF TULA ACTIVITIES IN 2008:

 In 2008, the Louisiana voter joined with TULA and other pro-growth organizations to obtain a roll-back of the "Stelly Plan" income tax increases.  In fact, this tax reduction was granted only to stave off the complete phase-out of all State personal income taxes.  Ultimately, TULA is in full support of a expedited phase out of personal income taxes in Louisiana.  At the end, the Administration strapped onto our tax cut an amendment that will delay this tax cut for almost two years (until you receive your tax refunds after January 2010).  The reform revolution in Louisiana showed its strength in 2008, beating back a legislative pay raise bill that started as an attempt to triple legislative pay.   Too many legislators actively supported this irresponsible pay raise, until the voter's uprising finally ended this legislative and fiscal embarrassment.

The initial opposition of Governor Jindal and Speaker Tucker to much needed tax relief for the families and businesses of Louisiana remains largely unexplained.  With a history of over taxation and gross overspending in 2008, Louisiana remains a high tax, big government State that continues to be a real impediment to prosperity for its citizens.  The fiscal burden placed on every taxpayer is highlighted in 2008 by the increase in State employees of over 4000, and the largest number of pork-barrel "earmarks" left in the capital outlay bill and appropriation bills signed by Governor Jindal.  The legislature and the Governor appropriated millions of taxpayer dollars to non-government organization(NGOs), without a public hearing or public justification.  Clearly, there is much more work to be done by the taxpayers of Louisiana to prevent this wasteful spending.

TULA'S TAXPAYER AGENDA FOR 2009:

 In short, the reform revolution remains empowered and active in Louisiana.  As promised to each of our members, TULA's leadership pledges to be an active volunteer leader in building family prosperity and business growth in Louisiana through strategic tax cuts that make Louisiana economically superior to the other States in America.  The regular legislative session of 2009, beginning Monday, April 27, 2009, will provide our reform legislators and our reform governor with the opportunity to build prosperity in Louisiana by reducing the egregious overspending and pork-fest of the past several years.  With a national recession threatening the economy in Louisiana, TULA will lead the fight for more state tax cuts and reductions in wasteful governmental spending.  The TULA legislative agenda will focus on the following tax burdens on the Louisiana families and Louisiana businesses:

 I. Immediately Implement the 2008 Income Tax Cut.  A last minute amendment to the "Stelly Tax" rollback was added by Speaker Tucker that stopped the revision of the state income tax tables.  This means the cut doesn't get to the taxpayer until their 2009 income taxes are filed, Louisiana taxpayers need that money in their pay checks now.  If the Governor and Speaker are going to "brag" about the biggest income tax in history, then they can certainly make the cut available to the taxpayers immediately.  Our implementation target will be the start of the fiscal year, July 1, 2009.

 II. Repeal State Income Taxes for persons Over 65 Years of Age.  TULA will act in support of Representative Ligi's HB 13.  This reduction in state income taxes will create an immediate increase in prosperity for the citizens of Louisiana over 65 years of age.  Equally important, this income tax repeal will attract other senior citizens to the State of Louisiana, bringing increased population and economic growth with these new Louisiana citizens.

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