Louisiana Senate Bill SB720

Louisiana 2012 Regular Session

• Introduced: 4/3/12
• Refer: 4/3/12

Caption

Provides relative to postsecondary education institutions that have declared financial exigency. (gov sig)

Impact

The primary impact of SB 720 is its effect on existing laws regarding the performance agreements of postsecondary education institutions. By introducing provisions for lowering performance objectives, the bill seeks to provide a structured method for institutions to recover from financial crises. Moreover, SB 720 preserves the autonomy of these institutions, allowing them to adjust their operational needs without losing their fundamental educational mission. This change is significant as it recognizes the unique operational challenges faced by educational institutions during periods of financial distress.

Summary

Senate Bill 720 focuses on postsecondary educational institutions in Louisiana that have declared financial exigency. The bill aims to modify how these institutions manage and report their performance objectives and ensure their operational autonomy during financial distress. Specifically, it allows the Board of Regents to lower performance targets in response to extraordinary circumstances preventing institutions from meeting their original objectives. This modification must be approved by the Joint Legislative Committee on the Budget, thus maintaining legislative oversight over academic institutions during financial challenges.

Sentiment

The general sentiment surrounding SB 720 appears to be supportive among educational administrators and advocates for higher education, who see it as a necessary tool to help institutions navigate financial hardship effectively. However, there may be some concerns among legislators and educational policy analysts regarding the adequacy of oversight provided by the Joint Legislative Committee on the Budget. The requirement for legislative approval introduces a check that can prevent institutions from making swift adjustments during critical periods, highlighting a tension between autonomy and accountability.

Contention

One notable point of contention regarding SB 720 lies in the balance it seeks to establish between institutional autonomy and legislative oversight. While supporters argue that the bill is a vital step toward offering necessary flexibility for institutions facing financial exigency, critics could raise concerns about the implications of maintaining high oversight during critical recovery periods. The bill's stipulation for approval of performance target modifications can be seen as either a safeguard or a bureaucratic hindrance, depending on one's perspective on the nature of governance in educational administration.