Too many of the voices we have heard recently—especially from the news media—sound like Chicken Little. Let me predict here and now, the world will not end for Louisiana or higher education during the upcoming session of the Legislature. Solutions will be found. The fact is, as you see below in the list of recent good economic news, much of the world here does not revolve around or depend on the Legislature. Business is strong in Louisiana and getting even better (the energy industry being an exception due to the current low price of oil). I hear from many company CEOs who had a record year and look to grow and expand in 2015
Many of these companies weathered the recession and did more with less, so they are not sympathetic to government or higher education having to do the same thing. And they are not interested in paying more taxes to bail out anyone.
They also know, like you and I do, that many of the problems Louisiana faces have been talked about for decades, including:
Too many constitutionally dedicated items in the state’s budget with only health care and higher education at risk for cuts. The same public and Legislature opposing funding cuts for higher ed supported a constitutional amendment approved last fall that now protects funding for hospitals and nursing homes—leaving higher ed as the only area not protected from cuts. That is absurd and hypocritical. How did you vote? We now have more than 180 amendments to our constitution. Folks say one thing, and then do another.
2) We say we have too many four-year colleges but the Legislature blocked an attempt to merge Southern University at New Orleans with the nearby campus of the University of New Orleans, despite SUNO’s single-digit graduation rate. We have 14 four-year colleges, while Ohio, with 2.5 times our population, has 13. In recent years, Georgia has merged 10 schools into five, and has more consolidation planned.
Universities and community colleges must spend time and resources on student remediation because our K-12 schools graduate kids who can’t do math and English (despite state spending of $10,000 a year per student). How did those kids get a diploma? Why isn’t the “Chicken Little media” pointing the finger at K-12 to save higher-ed money? Our school boards and superintendents complain about letter grades for schools, evaluations for teachers, competition from charter schools and the state’s voucher program. Are you kidding me? Colleges should be able to bill local school districts for remediation costs. They are the ones who got the money and then failed.
4) The very generous pension and health care benefits for state workers in defined plans. Our past legislators approved these but didn’t fund them—and now we are playing catch-up. They are way out of line and unsustainable—and need reform. Did you know that retirement contributions represent over one-half of LSU’s annual benefit costs, and the vast majority (80%) of this contribution goes toward the unfunded accrued liability of the retirement systems. That’s over $100 million a year. Several CEOs told me that would bankrupt them. We also know that state government employment was inflated (due to old politics) and has been reduced by 30,000 under Gov. Jindal. But we are still paying for all those from the past. State workers can retire after just 20 years and get huge benefits for life, along with health care—and can start a new career. Do you have that at your company?
5) The Legislature, with a Republican majority in both houses, would seem to support free markets. But then they want to deny colleges autonomy to handle their own tuition, fees, purchasing and risk management. I realize TOPS plays into that tuition decision since it comes from general funds. The truth is, the marketplace, Internet-based instruction and consumer choices are going to eventually force mergers or closure of some schools that cannot compete. This is the case across America and states will not be able to save them all.
These are just a few of the tired discussions we have had for decades. Everyone agrees something should be done—but just don’t mess with me and mine.
Our history of populism (“a chicken in every pot”) haunts us because 80% of Louisiana residents are native and have grown up with “the way we’ve always done it before.” We expect the status quo to continue and the state to pay for everything. Those days are over—in Louisiana and elsewhere—because there is not enough money, and taxpayers have had enough. The middle class is not giving up TOPS scholarships, and the Stelly Plan is not coming back.
Louisiana’s current budget shortfall is rooted in issues that have affected our state over a long period of time. They include populism, parochialism, poor public education and an electorate that elected the likes of Edwin Edwards for governor … four times. I remember the nightmarish 1990s run-off between Edwards and David Duke. Both ended up in prison. I remember the opposition to Buddy Roemer’s fiscal reform after the policies of Edwards and then-State Sen. William Jefferson, who also is now in prison. Is there a pattern here? Are we reaping what we sowed years ago?
Public education has failed to help our children break Louisiana’s historic cycle of poverty that reproduces a culture of lack of work and poor health. And the cycle repeats itself, which adds more dependents to the state, raises the cost of health care and produces more high school dropouts, too many of whom end up incarcerated. This also means fewer college-ready students for Louisiana’s colleges and workforce.
Let’s agree Chicken Little is no leader. Our budget issue is complex and even cultural—and involves a lot more than having enough money. We have complained about the same things for years, but refuse to change, instead looking for an easy way out. Why? Maybe Pogo was right: “We have met the enemy and he is us.”
Good news keeps coming
This kind of good news seldom gets the headlines, like budget cuts.
- South African firm Sasol Ltd. announced last month that five Baton Rouge-based construction firms have been awarded a total of more than $1 billion in contracts to build its $8.1 billion ethane cracker in Lake Charles.
- The Greater Baton Rouge Industry Alliance released results of its biannual, 18-month contract labor survey of industrial plants. Demand for contract labor in the Baton Rouge area should total between 21,000 and 25,000 jobs for most of the year before surging to a record of between 27,000 and 28,000 in the first half of 2016.
- Visit Baton Rouge President and CEO Paul Arrigo announced last month, “Last year will go down as one of the best for Baton Rouge tourism.” He also said Mississippi riverboat dockings would rise 47% here. Just hours later in New Orleans, Gov. Bobby Jindal announced that European river cruise giant Viking will make its first North American home port in New Orleans, with Mississippi River cruises expected to start in 2017. This will impact New Orleans, Baton Rouge and West Feliciana tourism.
