1. Postsecondary Education Review Commission Impact of Shifting Enrollments on Resources in Louisiana September 29, 2009

2. 5-Year Budget Outlook 2 9.48.18.28.58.8 9.4 8.1 9.1 10.5 10.7.9 1.9 Source: Louisiana Division of Administration

3. Postsecondary Education “Budget” Outlook and Issues FY2009-10, the current year –Effective reduction of $120+ million in direct operational funding between State fund reductions and federal stimulus replacement, an 8.7% effective reduction in “State” support but only a 3.3% reduction in overall support FY2010-11, next fiscal year –Uncertainty of outlook –Recent communication from the Administration to the Postsecondary Education Review Commission projecting a minimum $146 million additional funding reduction FY2011-12, the following fiscal year –Projected “big budget problem”, a State budget shortfall projected at almost $2 billion –Federal stimulus funding ends

6. Louisiana Office of Student Financial Assistance and Student Financial Assistance TOPS - $130 million Go Grant - $34 million Dual Enrollment - $5.5 million

7. Source: Louisiana Board of Regents

10. $313.4M General Fund Reduction after 08-09 mid-yr reduction

11. Federal Stimulus $189.7M Stimulus Supported Base $ 1.3 B

12. Minimum $146M SGF Reduction projected for FY10-11

13. Federal Stimulus $189.7M Minimum $146M SGF Reduction projected for FY10-11

14. Federal Stimulus $189.7M Stimulus Supported Base $1.155B Minimum $146M SGF Reduction projected for FY10-11

15. 146M SGF Reduction

16. $459.3M General Fund Reduction from 08-09 Level (after $55M mid-year cut) $146M SGF Reduction

17. With Stimulus Without Stimulus $976.0 $821.9 Institutions Health sciences centers Agricultural centers Law centers Stand-alone research centers Boards and system offices

22. Differences in funding approaches between “old” and “new” formulas are significant New formula sets values for student credit hour production specifically for each institution, by level of student and discipline of the student credit hour Differentials remain in values based upon “type” of institution and its specific costs (SREB category) State/student shares of cost are function of “type” of institution (generally 60% or higher share for State @ 4-Yr vs. 70%+ State share @ 2-Yr.) Analysis of Shifting Enrollment

23. Analysis is based upon overall enrollment, not just entering freshmen cohort Time will be required to “shift” enrollment in substantial amounts Nature of “shift” in mix will depend upon: –Overall growth in enrollment –Degree of stability in 4-year enrollment –Degree of growth in 2-year enrollment Possible Causes of “shift” –Admissions standards –Growth in additional students to 2-year institutions –Enrollment caps at 4-year institutions –Significant change in “pricing” of respective types of institutions “Savings” potential from shifting enrollments: –SREB rates vs. Actual funding rates –Impact of new formula approach –Lowest funded 4-year institutions are likely to yield the most significant areas for potential shifts of enrollment, thus less “savings” potential