Southern University System reports enrollment growth amid funding challenge

The Southern University System is facing significant budgetary challenges as it prepares for the upcoming fiscal year. During a recent meeting of the Louisiana Legislature's finance committee, President Dennis Shields outlined the system's current status, highlighting both achievements and concerns that directly impact students and faculty.

One of the key points discussed was the increase in student enrollment, particularly among out-of-state students, which rose from 15.5% in 2020 to 19% in 2024. This growth is a positive sign for the university, indicating a broader appeal and potential for future funding. However, the retention rate for first-year students has stagnated at 56%, a figure that has seen only modest improvement since 2019. Graduation rates also remain low, with only 4% of students completing their programs in two years and 26.4% in six years for four-year institutions.

Financially, the Southern University System has experienced a 36% increase in funding from fiscal year 2018 to 2024, but projections for fiscal year 2026 indicate a concerning drop in funding. The budget adjustments reveal a 3.5% decrease in general revenue fees, primarily affecting the law center and the New Orleans campus due to declining enrollment. The ACCESS Center is also facing a significant reduction in funding, dropping from over $3 billion in 2025 to $9.3 million in 2026.

President Shields expressed gratitude for the support received from the legislature and emphasized the importance of continued investment in the university system. He noted that over the next 18 to 24 months, the Southern University System anticipates over $300 million in capital investments across its campuses, which could help bolster its infrastructure and educational offerings.

As the Southern University System navigates these financial challenges, the outcomes of these discussions will be crucial for the future of its students and faculty. The legislature's decisions in the coming months will play a vital role in shaping the educational landscape in Louisiana, impacting not just the university but the broader community it serves.