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Board of Regents budget hearing: systems highlight deferred maintenance, capital priorities and program funding needs
Summary
At a Sept. 24 Board of Regents finance hearing, system leaders and Board of Regents budget staff outlined priorities: ramped capital projects and deferred maintenance, cybersecurity and IT modernization, workforce training, and campus safety. Several speakers warned about fragile scholarship budgets and athletics deficits across the UL system.
The Board of Regents finance committee heard detailed budget and program presentations on Sept. 24 from Board of Regents staff and leaders of Louisiana's public higher education systems. The hearing combined an REC fiscal overview with institutional briefings from the Board of Regents agency, LUMCON, LASFA/LSOFA (student financial assistance), LCTCS, Southern University, LSU (system and health centers) and the University of Louisiana System.
Board of Regents staff summary
Elizabeth Bentley Smith (Deputy Commissioner for Finance Administration, Board of Regents) reviewed the agency and system budget changes for FY26, noting modest general fund shifts but larger self‑generated revenue requests driven by enrollment increases at some campuses. She said mandated personal‑services adjustments were required under HB 1 and that “federal funding funding that is to correct an error” was being aligned in FY25. Board finance staff emphasized they are coordinating with system CFOs on mandatory adjustments and non‑recurring allocations.
LOSFA and scholarship pressure: "We will be blessed if we make it to Oct. 1"
Simone (LASFA/LOSFA senior official; transcript identifies the speaker by first name) warned the hearing that MJ Foster and TOPS funding faces liquidity stress. She described a phased payment plan to preserve fairness to students and said, “We're gonna be blessed if we make it to October 1,” adding that MJ Foster funding could be exhausted in the fall and that there may be no spring MJ Foster disbursements without additional appropriations.
LUMCON: facilities and vessel replacement
Dr. Brian Roberts (LUMCON) told the Regents that marine operations and outreach are rising and that the Pelican replacement ship is under construction with a 2027 delivery window. He said new facilities (Blue Works, marine operations center) increase operating and insurance costs and outlined storm‑resilience work, flood mitigation grants and a multi‑million‑dollar HVAC replacement project schematic.
LCTCS and workforce priorities
Dr. Bonnie Sullivan (LCTCS president) highlighted the system's doubling of select healthcare and construction trade graduates over recent years, progress on efficiency (fewer administrative locations, higher completion per enrolled student) and the system's focus on short‑term workforce credentials and adult education. She told regents the system is aiming to deliver more than 38,000 graduates statewide this year and urged investment in portable workforce training tied to regional economic projects.
LSU and Southern system reports
Interim LSU President Matt Lee described historic enrollment strength at the flagship and system campuses and a push to grow research to win larger federal grants. “We are building not only a national, but a global brand in real time,” Lee said, describing new capital investments and plans for a next‑generation information commons.
Southern University President Kenneth Shields outlined a system revitalization driven by capital projects, planned applied research expansion and workforce pipelines. He credited deferred maintenance appropriations and recent fundraising for enabling campus construction.
UL System and athletics deficits
UL System President Rick Gallo and VP Eddie Mesh reviewed the system's nine campuses and the steady outcomes of graduates who stay and work in Louisiana. Gallo acknowledged multiple UL campuses are carrying institutional transfers into athletics programs to cover ongoing deficits. Regents and system leaders discussed the need for early‑warning financial monitoring and systemlevel policy to address structural athletic shortfalls.
Why it matters
Regents and system leaders emphasized three crosscutting priorities: funding and planning for deferred maintenance and capital projects that can be tied to clear academic or economic outcomes; stabilizing and clarifying scholarship and student‑aid lines (TOPS, MJ Foster) that affect enrollment and tuition management; and system‑level financial controls and shared services to manage rising operating costs (insurance, utilities, cybersecurity, fleet/transportation).
Ending
The Board asked systems to prepare prioritized lists of capital and program asks (three top priorities) for the administration and legislature and to work with the Board of Regents and DOA on consolidated financial reporting and early‑warning triggers. Board of Regents staff said a formal financial‑warning policy and a quarterly monitoring package will be rolled out to provide clearer, auditable signals to regents and the legislature.
