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Regular Session, 2010
SENATE BILL NO. 746
BY SENATOR JACKSON
POSTSECONDARY ED. Requires the Board of Regents to submit a report to certain
legislative committees regarding the formula adopted to fund institutions of postsecondary
education. (8/15/10)
AN ACT1
To amend and reenact R.S. 17:3129(C) and (E), and 3130(B)(1), and R.S. 39:28(C) and2
32.1, and to enact R.S. 17:3129(F), relative to postsecondary education; to provide3
relative to funding institutions of postsecondary education; to provide for the powers4
of the Board of Regents; to provide relative to budget request forms; to require that5
the formula adopted by the Board of Regents be reported to certain legislative6
committees; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 17:3129(C) and (E), and 3130(B)(1) are hereby amended and9
reenacted and R.S. 17:3129(F) is hereby enacted to read as follows: 10
§3129. Power to recommend budget11
* * *12
C. The legislature shall appropriate funds for the operating and administrative13
expenses of the state boards created by or pursuant to Article VIII of the Constitution14
of Louisiana. Appropriations for the institutions of higher postsecondary education15
shall be made to their managing boards. The funds appropriated shall be16
administered by the managing boards and used solely as provided by law.17 SB NO. 746
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* * *1
E. The Board of Regents shall formulate and adopt a formula for distribution2
of funds appropriated by the legislature for deferred maintenance. This formula shall3
be effective for all institutions of higher postsecondary education and shall give4
priority to those institutions with preventive maintenance programs.5
F. Any formula formulated and adopted by the Board of Regents for6
funding institutions of postsecondary education in the ensuing year as provided7
in this Section shall be annually reported to the Senate Committee on8
Education, the Senate Committee on Finance, the House Committee on9
Education, and the House Committee on Appropriations, not later than March10
fifteenth of each year.11
* * *12
§3130. Other powers13
* * *14
B.(1)(a) All constitutional responsibilities of the Board of Regents, including15
the development of a formula for equitable distribution of funds, shall apply to all16
public postsecondary education institutions, including vocational-technical schools.17
(b) Not later than the convening of the 1999 Regular Session, the Board of18
Regents shall submit to the legislature a proposal for full funding of the funding19
formula for higher and postsecondary education to be completed over a five-year20
period beginning not later than the fall of 1999, including provisions for equitable21
distribution of funds included in the formula.22
(c) Beginning with Fiscal Year 2011-2012, such formula for the ensuing23
year shall be annually reported to the Senate Committee on Education, the24
Senate Committee on Finance, the House Committee on Education, and the25
House Committee on Appropriations, not later than March fifteenth of each26
year.27
* * *28
Section 2. R.S. 39:28(C) and 32.1 are hereby amended and reenacted to read as29 SB NO. 746
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follows:1
§28. Forms for the budget request2
* * *3
C. Notwithstanding the provisions of Subsections A and B of this Section, for4
each higher postsecondary education system, institution, or budget unit which is5
funded or which is proposed by the Board of Regents to be funded through the higher6
education funding formula for the ensuing fiscal year, the forms to be used for7
budget requests shall be as provided in R.S. 39:32.1.8
* * *9
§32.1. Budget request forms, content, and submission; higher postsecondary10
education formula funded agencies11
A. The provisions of this Section shall apply to each higher postsecondary12
education agency, which may include systems, institutions, or budget units, which13
is funded or proposed by the Board of Regents to be funded through the higher14
education funding formula in the ensuing fiscal year.15
B. The format and content of the annual operating budget, the operational16
plan, and the budget request to be used by higher postsecondary education agencies17
shall be prescribed by the Board of Regents, subject to the provisions of this Section18
and the approval of the division of administration, and shall be developed in19
consultation with the chairmen of and the House Committee on Appropriations and20
Senate Committee on Finance. The Board of Regents shall transmit to each such21
agency a complete set of forms to be used and provide instructions and consultation22
on the proper method of completing the forms.23
C. Each higher postsecondary education agency shall prepare an annual24
operating budget, which shall be subject to approval by both the appropriate25
management board and the Board of Regents. The operating budget shall contain,26
at a minimum, budgetary information on prior year actual revenues and expenditures27
and current year budgeted revenues and expenditures, and the budgetary information28
as provided in R.S. 39:32(C) through (H) for the prior and current fiscal years.29 SB NO. 746
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D. Each higher postsecondary education agency shall prepare an annual1
operational plan for the purposes of the budget request. The operational plan for any2
such agency, to the maximum extent practicable, shall be consistent with the3
agency's strategic plan required by R.S. 39:31 and the master plan for higher4
postsecondary education required by Article VIII, Section 5(D)(4) of the5
Constitution of Louisiana. The plan shall include information relative to the specific6
performance evaluation and functional accountability provisions of the funding7
formula. The plan shall include a current statement of the agency's mission and its8
goals, objectives, performance indicators, and activities, as well as a detailed plan9
of its operations. The plan shall be used by the division of administration in the10
development of the executive budget and supporting document in order to ensure that11
performance standards are consistent with the financial plan for the fiscal year.12
E. The Board of Regents shall submit to the governor the budget request for13
each higher postsecondary education agency which is proposed to be funded14
through the higher education funding formula for the ensuing year.15
F. The budget request submitted by the Board of Regents shall consist of the16
current approved annual operating budget and the operational plan for each higher17
postsecondary education agency, and a funding request for the agency under the18
higher education funding formula most recently adopted by the Board of Regents19
and reported to the legislature.20
The original instrument was prepared by Sherri H. Breaux. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Jeanne Johnston.
DIGEST
Jackson (SB 746)
Present constitution (Art. VIII, Sec. 5(D)(4) and (5)) provides for the powers of the Board
of Regents (BOR), including the power to formulate and make timely revision of a master
plan for postsecondary education. Requires the plan, at a minimum, to include a formula for
equitable distribution of funds to the institutions of postsecondary education. Further
provides for the power to require that every postsecondary education board submit to the
BOR, at a time it specifies, an annual budget proposal for the operational needs and for
capital needs of each institution under the control of each board. Requires the BOR to submit
its budget recommendations for all institutions of postsecondary education and recommend
priorities for capital construction and improvements. SB NO. 746
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Proposed law retains the powers of the BOR in present constitution.
Present law (R.S. 17:3129) provides that the BOR may require that every higher education
management board submit to it, at a time it specifies, an annual budget proposal for
operational and capital needs of each institution under the control of each management
board. Requires the BOR to submit to the governor and to the legislature its budget
recommendations for all institutions of postsecondary education, including priorities for
capital construction and improvements for such institutions. Requires that the legislature
consider the recommendations of the BOR regarding the budget for capital construction and
improvements prior to adoption of the capital construction budget by the legislature for
projects from such priority list. Provides for the appropriation of funds by the legislature for
the operating and administrative expenses of the constitutionally created board. Provides that
appropriations for the institutions of higher education be made to and administered by their
managing boards.
Proposed law retains present law.
Present law requires the BOR to formulate and adopt a formula for distribution of funds
appropriated by the legislature for deferred maintenance for all institutions of higher
education and give priority to those institutions with preventive maintenance programs.
Proposed law retains present law but further requires that any funding formula for the
ensuing year be reported to the Senate Committee on Education, the Senate Committee on
Finance, the House Committee on Education, and the House Committee on Appropriations,
not later than March 15
th
of each year.
Present law (R.S. 17:3130(B)(1)) provides that the constitutional responsibilities of the BOR,
including the development of a formula for equitable distribution of funds, apply to all
public postsecondary institutions, including vocational-technical schools.
Proposed law retains present law, but removes obsolete reference to "vocational-technical
schools", in that such technical colleges are considered as public postsecondary education
institutions.
Proposed law provides that, beginning with Fiscal Year 2011-2012, such formula for the
ensuing year to be annually reported to the Senate Committee on Education, the Senate
Committee on Finance, the House Committee on Education, and the House Committee on
Appropriations, not later than March 15
th
of each year.
Present law requires that the format and content of the annual operating budget, the
operational plan, and the budget request to be used by higher education agencies to be
prescribed by the BOR, subject the approval of the division of administration, and developed
in consultation with the chairmen of the House Committee on Appropriations and Senate
Committee on Finance.
Proposed law requires that the format and content of the operating budget and plan also be
subject to the approval of both the House Committee on Appropriations and Senate
Committee on Finance, instead of in consultation with the chairmen, but otherwise retains
present law.
Present law requires each higher education agency to prepare an annual operating budget,
which is subject to approval by both the appropriate management board and the BOR.
Provides for the operating budget to contain, at a minimum, budgetary information on prior
year actual revenues and expenditures and current year budgeted revenues and expenditures,
and the other budgetary information for the prior and current fiscal years.
Proposed law retains present law. SB NO. 746
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words in boldface type and underscored are additions.
Present law requires the budget request submitted by the BOR to consist of the current
approved annual operating budget and the operational plan for each higher education agency,
and a funding request for the agency under the higher education funding formula most
recently adopted by the BOR.
Proposed law requires the budget request submitted to include the funding request under the
funding formula most recently adopted by the BOR and reported to the legislature.
Proposed law makes certain technical corrections in terminology from "higher" education
to "postsecondary" education.
Effective August 15, 2010.
(Amends R.S. 17:3129(C) and (E), and 3130(B)(1), and R.S. 39:28(C) and 32.1; adds R.S.
17:3129(F))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Education to the
original bill.
1. Removes requirement for legislative approval of higher education funding
formula. Instead requires the Board of Regents to submit report on formula
adopted to specified legislative committees.