"Academic Bankruptcy"

http://www.nola.com/politics/index.s...incart_m-rpt-2

I haven't been on the board in a while, so my apologies if this has already been discussed, but I didn't see it mentioned anywhere.

This article is from NOLA.com and says that many state universities might have to file financial exigency due to state budget cuts, which is basically a way of making it easier to lay off teachers and cut programs....much like bankruptcy. The article also says that this hurts the institution badly because it makes it harder to recruit good professors in the future. Since this is a New Orleans article, it mainly focuses on LSU, but it also has this quote:

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Woodley said several of her campuses, though she would not be specific, would have to file for financial exigency if no additional state funding is found.

If necessary, Louisiana's public colleges and universities will coordinate their financial exigency filings, rather than have 16 to 20 different campuses putting in financial paperwork separately, according to higher education officials.


"If [state funding] doesn't materialize ... we would try to have all the systems going down that path together", said to Joseph Rallo, Louisiana's higher education, of financial exigency.

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Maybe I'm reading it incorrectly, but that sounds like Tech might be forced to file for exigency, even if we don't need to, just because others are doing it. Does anyone know what Tech currently receives per undergrad? Any ideas how deeply they are looking to cut us? Forcing LSU to go from $3500 to $660 is big. I'm just not sure how much we receive now. Hopefully, I am just reading this wrong, and what Mr. Rallo means is they would help coordinate the filings for any schools that need to file, rather than coordinating a mass-filing.

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Originally Posted by StrayDawg

http://www.nola.com/politics/index.s...incart_m-rpt-2

Maybe I'm reading it incorrectly, but that sounds like Tech might be forced to file for exigency, even if we don't need to, just because others are doing it. Hopefully, I am just reading this wrong, and what Mr. Rallo means is they would help coordinate the filings for any schools that need to file, rather than coordinating a mass-filing.

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I think they mean that the schools which would have to file for financial exigency would do it all at the same time instead of spacing the filings apart.

Quote:

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Louisiana's flagship university began putting together the paperwork for declaring financial exigency this week, when the Legislature appeared to make little progress on finding a state budget solution, according to King Alexander, president and chancellor of LSU.

"We don't say that to scare people" he said. "Basically, it is how we are going to survive.

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Does anyone really believe that LSU would file for financial exigency?

The Legislature will do what it always does with the budget during the Regular Session. The House will pass its version with some sort of reforms built in. The Senate will take it and sit on it until a week or so to go in the session. Then, Senate President John Alario will transform the budget into whatever he wants, pass it, give it back to the House with so little time left that they almost have to pass it or else.

The budget will be put together the way Bobby Jindal and Sen. Alario want it to be. The Senate version will be the one the passes and is enacted, for the most part. Some of the higher ed cuts will be restored and everyone will sing kumbaya just like the past few years.

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Originally Posted by TechAlum05

Does anyone really believe that LSU would file for financial exigency?

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Never happen.

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Originally Posted by TYLERTECHSAS

Never happen.

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Hell.....it happened to UNO post Katrina. southern has already filed their paperwork I believe.

We need a somewhat strong LSU.....a struggling LSU will mean problems for a Tech down the line.