Louisiana higher education budget increases as enrollment trends shift and funding sources change

In a recent meeting of the Louisiana Legislature's Finance Committee, key discussions centered around the state of higher education funding and enrollment trends, highlighting both challenges and opportunities for the future. The meeting, held on April 8, 2025, provided a comprehensive overview of the financial landscape affecting Louisiana's public higher education institutions.

The committee reviewed a five-year comparison of student enrollment, revealing a slight increase in overall headcount, although the number of graduate students has seen a decline. Notably, the percentage of undergraduate students receiving Pell Grants has risen, yet remains lower than figures from the 2019-2020 academic year. Additionally, there has been a significant decrease in the number of students originating from Louisiana, down 3.5% since fall 2020, while out-of-state enrollment has increased by approximately 3%.

Funding changes were a major focus, with the committee noting a 25% increase in actual funding from fiscal year 2018 to 2024. The recommended budget for fiscal year 2026 is projected at $3.4 billion, driven largely by fees and self-generated revenues rather than state investment. This shift raises concerns about the sustainability of funding for higher education, as state funds have decreased when adjusted for inflation, indicating a long-term trend of reduced investment in public education.

The committee also discussed the implications of these funding changes on student services and institutional support. Approximately 90% of higher education funding is allocated to discretionary expenditures, with personnel services representing the largest portion of the budget. The meeting underscored the importance of maintaining robust support for student-focused programs, which account for 80% of expenditures.

In terms of workforce development, the meeting highlighted the goal set by the Board of Regents to increase the percentage of working-age adults with post-secondary credentials to 60% by 2030. Currently, the attainment rate stands at 51%, indicating progress but also the need for continued efforts to enhance educational access and completion rates.

As the committee concluded its discussions, it became clear that while there are positive trends in enrollment and funding, significant challenges remain. The reliance on non-state revenues and the decline in Louisiana resident enrollment could impact the long-term viability of higher education institutions in the state. Moving forward, the committee will need to address these issues to ensure that Louisiana's higher education system can meet the needs of its students and the workforce.