Provides relative to the operations of public colleges and universities (RE INCREASE SG RV See Note)
The legislation directly impacts funding models for public higher education institutions, as it enables these institutions to draw on additional revenue to support their operations, within certain limitations. Specifically, the bill ensures that the total revenue from tuition and fees per full-time equivalent student does not exceed the national average, as reported by the National Center for Education Statistics. The requirement for a minimum allocation of 5% of these revenues towards need-based financial assistance for students eligible for Pell Grants aims to address financial equity among students attending these institutions.
House Bill 689 provides a framework for public postsecondary education management boards in Louisiana to establish and adjust mandatory fees for colleges and universities over a specific period, from the 2020-2021 to the 2022-2023 academic years. This authority includes implementing per credit fees and differential fees for specific programs, thereby allowing institutions greater flexibility in managing their financial resources. The bill mandates that any increase in fees affecting undergraduate students must be reported to the Joint Legislative Committee on the Budget within 90 days of such action, establishing a level of oversight in fee structuring.
The sentiment surrounding House Bill 689 appears supportive from the legislative perspective, evidenced by a unanimous passing vote in the House. Proponents argue that the bill is essential for enabling institutions to remain financially viable and competitive. Critics may express concerns about the implications of increased fees on student accessibility and affordability, particularly in times of economic strain, but these concerns are not prominently highlighted in the available discussions regarding the bill.
While the bill has received broad support, notable points of contention include the accountability measures tied to the fee increases and the provisions that allow institutions to exercise operational autonomies. If a college or university fails to meet financial auditing standards, they risk losing the granted autonomies, which could affect how effectively they manage their resources. This creates a potential conflict between financial independence and accountability, raising questions about how institutions balance these responsibilities moving forward.