Tuitionwill increase for the fall 2005 semester, but the $900,020 it will generatewill not put a dent in the more than $3 million the university needs to stayafloat.
“We haveseveral major financial challenges looking at us,” said Chancellor EdwardJackson. “It is of some four and a half million dollars and the only revenue wehave to treat it is the 3 percent tuition increase.”
There areseveral adversities creating this deficit for the university.
The statehas proposed a 3.5 percent reduction on unfunded mandates, which equals$1,458,843.
Theuniversity group insurance rate, increased the portion they must pay to provideemployees with health insurance by $1,087,119. All university classified civilservice employees eligible will receive a step increase, which accounts for$426,039. The cost of risk management increased to $38,770.
Theseadjustments total $3,010,771.
The moneyfrom the $52 per student tuition increase will not cover one third of theseexpenses and university is planning to make some serious budget reductions.
“We may haveto do a combination of a 3 percent tuition increase, a reduction in the numberof employees and perhaps employees giving up a small portion of theirsalaries,” Jackson said.
SouthernUniversity will definitely experience the group insurance, civil service andrisk management increases.
Accordingto Jackson they are not sure what they will do, because plans may changebetween now and July 1.
“There isa possibility the revenue picture for the state of Louisiana might change,” hesaid. “If it changes dramatically it might mean the budget reduction we have todeal with will be less.”
Jacksonsaid this is their planning mode.
“Everyoneis going to have to share in the burden of getting through this crisis,” hesaid.
Escalatingtuition for students is not something the university wants to do.
“We aretrying to avoid any interruption to student services. Any disruption to classes and the normal service we providefor our students,” Jackson said. ”Every employee on this campus will have to share in that burden,including the chancellor.”
InstructorRobert Cox sees these budget cuts as unnecessary in the midst of a prosperouseconomy.
“We areconstantly facing budget cuts, but it is a shame that this society is notplacing an emphasis on education,” Cox said.
This isnot the first time Southern University has faced financial challenges
”These are real trying times and I don’twant to frighten anybody, but everybody must understand what we are up against.These are tough times,” he said. “At the same time I want you to know thatSouthern has faced tougher times and we have come through it quite well.”
