Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Formula topic
No spam. Unsubscribe anytime.
Board of Regents approves preliminary FY27 funding distribution amid $850M underfunding
Summary
The Board of Regents voted to approve preliminary funding recommendations that run the new 70% base/30% outcomes formula on a standstill governor's budget, while staff warned institutions are collectively underfunded by roughly $850 million. Members urged legislative action to increase appropriations before the formula is fully implemented.
The Board of Regents approved preliminary FY 2026–27 funding recommendations on a voice vote after staff presented the governor's standstill executive budget and a formula-based allocation. Deputy Commissioner Elizabeth Bentley Smith told the board the formula would be run on the standstill budget and that, "We are underfunded by $850,000,000," a shortfall staff said would mean winners and losers among institutions if the legislature does not add new dollars.
The executive budget presentation identified targeted additions proposed by the governor, including a $14.5 million increase for the Murphy J. Foster Promise program and $4 million for a new START software platform to modernize the student tuition accounts. Bentley Smith also reviewed nonrecurring requests, ERP software consolidation asks and other line items the systems had requested but that were not included in the executive package.
Regents debated the implications of running a formula with no new overall dollars. Regent Aubrey expressed concern that the same total would produce "more winners than losers" by reallocating existing funds: "If we're gonna reward Peter, we gotta rob Paul." Rick Gallo, president of the University of Louisiana system, urged additional appropriations, saying increased funding (he estimated a roughly $56 million boost to higher education) would make the distribution more equitable.
Staff recommended and the board approved the preliminary distribution so the formula results can be transmitted to legislative leadership by the statutory deadlines. The decision sends the formula and the standstill allocations to the Senate and House appropriations and education committees as required by statute; the board and staff reiterated they will continue to advocate for increased funding during the legislative process.
What happens next: the board's approved distribution will be shared with legislative leaders; members indicated they expect to press the Legislature for additional appropriations to avoid net losses at some institutions.
