STAFF
SENATE
MONTHLY COMMITTEE and/or LIAISON REPORT
COMMITTEE OR LIAISON:
DATE & LOCATION
OF MEETING:
ATTENDANCE:
Joint Budget & Finance/Governmental Relations Committee
Tuesday, May 8, 2012
2:00 p.m.
221 Peabody Hall
Budget & Finance Committee Members: Senator Donna Torres
(Chair); Senator Chad Gothreaux (Co-Chair); Senator Donna
Love; Senator Igor Matkovic; Senator Scott Moreau; Senator
Joseph Thomas; Tommy Smith, Director, LSU Office of Budget
& Planning
Governmental Relations Committee Members: Senator Chad
Gothreaux (Chair); Senator Donna Torres (Co-Chair); Senator
Igor Matkovic; Senator Tammy Millican (GR); Senator Scott
Moreau; Senator Blake Winchell; Jason Droddy, Director of
External Affairs (via conference call)
Guest(s): Derrick Angelloz, GRAD Act Project Coordinator,
Finance and Administrative Services; Melonie Holden, Staff
Senate Administrative Coordinator
Absent Committee Member(s): Senator Denise ChiassonBreaux (B&F/GR); Senator Patti Exner (B&F); Senator Carolyn
Landry (B&F)
SUMMARY:
Tommy Smith, Director, LSU Office of Budget & Planning, provided an update on the
University’s budget status. The Louisiana Legislature is currently considering a supplementary
appropriations bill for the current fiscal year (FY 2012). There is a proposed $30 million
reduction in State General Fund appropriation for higher education, the distribution of which
would be determined by the Board of Regents. In the past, LSU has absorbed approximately 15%
of the overall cut to higher education, which would be approximately $4.5 million of this year’s
proposed cut. Through a procedural maneuver, the recognition of the current shortfall for FY
2012 could be deferred to next fiscal year. Also under consideration by the legislature is House
Bill (HB) 1, which is the primary budget bill for next fiscal year (FY 2013). As it currently stands,
HB 1 proposes a $71 million cut to higher education for FY 2013. In its proposed distribution, the
Board of Regents has recommended holding non-instructional institutions harmless and spreading
the cut over instructional institutions (e.g., 2-year and 4-year universities). In other pending
legislation, an additional $25 student fee per credit hour has been proposed to help universities
close the budget gap. If approved, this additional fee could potentially generate $17 million for
LSU, in addition to the 10% tuition and 15% nonresident fee increase associated with continued
implementation of the LA GRAD act.
Derrick Angelloz, GRAD Act Project Coordinator for Finance and Administrative Services, provided a
special briefing on the rapidly evolving retirement reform bills being considered by the legislature (see
attached listing of various proposed House and Senate bills). The two primary issues center around
proposed increases to employee contributions and changes to retirement age eligibility. Angelloz presented
the anticipated impact of the proposed legislation as it stands to date (see attached summary of SB 52 and
SB 749); however he noted the importance of recognizing that these various pieces of legislation evolve
almost daily. Angelloz will continue to apprise the joint committee chair as the legislation evolves, and
anticipates providing an updated briefing report that will be shared with the Senate at its May meeting.
Via conference call from the State Capitol, Jason Droddy, Director of External Affairs, provided a briefing
on University governmental relations efforts. Droddy reported that HB 1 includes a proposed $71 million
cut to higher education. At issue is whether the legislature taps one-time sources of funding such as the
“rainy-day fund.” Also moving out of committee is a proposed $30 million shortfall for the current fiscal
year ending June 30, 2012. This shortfall could be reduced should the legislature tap the “rainy-day fund,”
sweep other funds balances, or roll the deficit into next fiscal year through a procedural move. Discussion
is scheduled to take place on a proposed fee increase of $25 per credit hour for universities to help fill
budget shortfalls. The Revenue Estimating Conference will be meeting again next week to revise the
state’s revenue forecast.
Senator Donna Torres provided an update on University Finance and Administration. The University is
currently subject to Executive Order spending freeze (BJ 2012-3). A continuation of the spending freeze is
not currently in place for next fiscal year beginning July 1. While expenditures can be initiated for next
fiscal year, it is important to secure proper university approvals in advance in the event that another
executive order spending freeze were to be implemented shortly after July 1.
Since the legislative session will be ending at 6 p.m. on June 4, the committee decided to hold one final
joint committee meeting of the 2011-2012 year on Tuesday, June 12, 2012 at 2:00 p.m. in 221 Peabody
Hall.
There being no further business, the meeting adjourned at 3:30 p.m.
Enclosures
 Angelloz: Listing of Pension Reform Legislation
 Angelloz: Summary of SB 52 and SB 749 as of 5/8/12
Submitted By: Senator Chad Gothreaux