Though University President Stephen Hulbert froze all discretionary spending in response to the possibility of an additional $1.7 million budget cut this fiscal year, University officials said the potential cuts were based on February’s low state revenue and may not be imposed upon Nicholls as a result.Hulbert met with faculty and staff last week to discuss the possibility of additional budget cuts, but associate provost of academic affairs Larry Howell said the proposed cuts may have been based on an “anomaly.”
Howell said more people received tax returns last month than usual because more people are filing taxes online to receive their returns quicker. They are also receiving bigger returns than usual because the state legislature removed the Stelly Plan’s income tax increases last year, which Howell said reduced state taxes by about $350 million.
“I think they were shocked by how much in refunds was sent out in February,” Howell said. “They’ll have to rethink it through March.”
Hulbert said the University was not given an exact amount, but an estimate can be made from January’s budget reduction. “While no actual dollar amounts have been shared from Baton Rouge, if our mid-year experience holds true, Nicholls will face a 7.75 percent budget cut amounting to upwards of $1,729,342,” Hulbert said.
The University of Louisiana System, which Nicholls is a part of, would have received about $22 million in cuts.
Hulbert said budget cuts would cause “unprecedented challenges” this late in the fiscal year and that it is not clear if the University could even pay its share of the cuts.
Howell said a $1.5 million budget cut at this time would be devastating, but he does not want to speculate on the impact.
“When speculation spreads, fear takes over,” Howell said. “People should be concerned, but they shouldn’t panic.”
Hulbert froze all travel expenses and any unnecessary supply purchases until it is clear the University’s budget will not be cut, but Howell said the freeze will not make a big dent if the cuts come to pass. “Most travel is done, and most supplies are bought, but we can still manage to save some money in case it happens,” Howell said. University officials should know by mid-April if February’s low state revenue was an anomaly or a trend, Howell said.
Nicholls received a mid-year budget cut in January. “We handled that $1.4 million because it was anticipated,” Howell said. “We’re staying on top of it.
