Southern system seeks to streamline, reduce costs

A proposal supported by Southern University System President Ronald Mason would create “a new business model” by consolidating many back-office operations at the system office. The report’s authors reject the idea of merging the flagship campus and system office—the model being discussed by LSU—and what they describe as the University of Louisiana System model, where the system office “is basically a pass through between the units and the Board of Regents.” Instead, they propose a middle path where information technology, accounting and reporting, and enrollment management are handled at the system office level. Chancellors would retain control over the budgeting and staffing at each unit. The changes, along with new revenue from online degree programs, could be worth more than $22 million in annual revenue by fiscal year 2016, says Kevin Appleton, the system’s vice president for finance and business affairs. “Of course, it’s not an exact science,” he says, noting that the estimates provided in the report assume higher tuition and further cuts in state appropriations. The report does not contain an estimate of how many jobs would be eliminated if the new business model were implemented. James Llorens, chancellor of the main campus, had no comment this morning. The system’s Board of Supervisors is scheduled to consider and possibly approve the recommendations Friday. You can read the board’s agenda here; the restructuring report begins on page 28. —David Jacobs