Returning Southeastern students will notice some changes in the campus they have grown to know this semester. These changes will come as a result of this year’s budget cuts that have lead to the termination of 64 staff positions and severely slashed departmental operating budgets.
Along with these measures the university has also deemed it necessary to impose furloughs on some of the personnel employed by the university as well as raise tuition by about five percent.
Beginning this fall semester, Southeastern will reportedly have about $10 million less to work with than in the previous budget year.
Southeastern PresidentJohn L. Crain said that the administration was trying to limit the impact of the cuts on the academic programming of the university. Also, because of the prudent mid-year decision to freeze all new hires, 45 of the 64 positions being eliminated are unoccupied and now simply will not be filled. “The magnitude of the budget cut and the need to exercise prudent management of our remaining resources have forced us also to eliminate 19 occupied positions,” Crain said. “This was not an easy decision to make, and we regret the negative impact these layoffs will have on people’s lives.”
The university’s budget cutback plan, which has been developed recently, includes about a $7 million cut from operating funds like; supplies, travel, printing, operating services, acquisitions and repairs. Cuts will also be made in the athletic program, Crain said. Another $3 million in savings will be attained with furloughs and salary and benefit cuts connected with the abolished positions.
The university administration will reportedly be keeping a close eye on the results of its efforts in the coming months. The execution of these plans will also be closely monitored.
While this is a large chunk of money that will be saved by the university system, Crain said that much of this money raised and saved will go to meeting the ever-rising costs of utilities and employee benefits. However, there is also good news. “In addition, we have a long-standing practice of routinely evaluating academic programs to ensure their viability,” he said. “Programs have been phased out when they became less attractive to students, less relevant to the area’s workforce needs, or less financially viable. The response required to address the immediate budget cut could have been much more dire had it not been for prior budget prudence.”
Even with the cuts that Southeastern is already implementing the administration is reportedly still looking for more in the future. Reports indicate that the next two fiscal years may prove to be equal in uncertainty with the current budget session.
However, despite these troubling circumstances and the uncertainty that will come in the next few years, there is cause for hope on the horizon. “We remain committed to maintaining our core academic mission in the face of budget challenges,” he said. “Our enrollment continues to be strong, and this fall we expect the largest number of well-prepared new freshmen in the university’s history. As faculty and staff, we remain focused on the success of our students.”
The Students return will bring relief for the local economy
With that said, one can never underestimate the impact that an influx of over 15,000 students can have on an institution. The five percent tuition hike is projected to raise just short of $3 million for the year, according to Public Information Director Rene Abadie.
While a large portion of the money will go to make up for some additional increases in expenditures, this is still a huge increase in the revenue coming from the students. For this reason SLU undergrads and grad students alike are making a big difference in the economy of the university.
In a similar way, the return of residential students to the area will make a huge impact on the local city economy as well.
Some local college hot-spots including PJ’s Coffee, the Crescent Bar and Tommy’s Pizza have all weighed in giving a definite nod to the valuable resource that these students are to their businesses and to Hammond business as a whole. “Any business will pick up when thousands of people fluctuate through the town,” PJ’s General Manager Myrie Burvant said. “Any business where they spend their discretionary money, it helps when they are here.”
Because of the nature of this particular business, students will spend their time studying and hanging out with friends, which also generally entails spending more of their “discretionary money.” This will no doubt boost the revenue that this coffee shop takes in. “College students are very helpful to Hammond’s economy, we’re a college town, so absolutely,” Burvant said. She could not comment about the economic uncertainty that would come with the raised tuition. She indicated that there is no way to speculate how this may affect their business.
However, even with the hits that the economy has taken in recent months, she said that there has still been a steady clientele. Now that the fall semester is almost here though, business is poised to increase again.
Tommy’s Pizza reportedly tends to get a significant college base for its business. However, because of the nature of Southeastern’s campus being a largely commuter school, it normally keeps a steady college clientele throughout the year. “Even when school is out we still maintain a steady business, we try not to rely on the students as being our bread and butter,” General Manager Alex Maklary said. “We do get a significant college base, but they do tend to come year round.”
This also is most likely due to the fact that Southeastern is a largely commuter school. Therefore, the impact of these students on the local economy of Hammond and on Tommy’s Pizza in particular, may be more profound than any estimates could demonstrate. “In general, year round, I would probably say we get about 25 percent of our business from college students,” he said. And even with the coming tuition hikes, he has little fear of a drop-off in business. “Because of the quality of our product and the fact that we are a medium price range, we try to keep our price so that it is available for everybody,” he said. “So we stay fairly busy regardless of the circumstances.”
The Crescent Bar, another of Hammond’s college hangouts, is certainly looking for business to pick up now that the fall semester is right around the corner. “We do get our fair share of the students and faculty from the school,” Co-Owner Ricky Brocato said. When school is in he feels there may be as much as a 20 percent increase in foot traffic and business coming through.
He feels that in a town the size of Hammond, dumping an extra 15,000 people into the mix is going to have an impact, it is inevitable. As far as that impact diminishing because of the ever-rising tuition costs and the looming cutbacks targeted for Southeastern, Brocato feels there is no cause for concern. “I’ve seen increases come and go,” he said. “People are social animals, they are going to come out and have a few drinks.”
With this, and indications from other business managers and owners in the area, there seems to be a consensus that, despite the economic troubles the university is currently treading through, the students will continue to make a significant economic impact on the city as a whole.
The university’s own research into its impact on the area estimates it having a $500 million impact on the city and out to a 25 mile radius from the school. This estimate is based on a 2003 study and has been adjusted for inflation, according to Abadie. “The total economic impact of our universities is difficult to measure,” said University of Louisiana System President Randy Moffett. Southeastern is currently reported to be the second largest university in the UL system and ranks third in size overall in the state with its 15,000 plus students and nearly 2,000 faculty and staff positions.
A system this size is bound to make a significant impact on the area. This is something that is recognized by both local city officials and parish officials alike. And while the exact impact is something that is not measurable, there is no doubt that whatever affects Southeastern affects the local economy.
To that end the students returning to the city this fall to continue with their studies will mark another year of economic help for Hammond and the surrounding area. This is something that should provide a boost for the economic lull left by some absent students over the summer months.
Despite the troubles settling squarely on the shoulders of Southeastern’s administration, faculty, and staff, the university’s students still provide a great source of hope for the revenues of the school, the city, and the general economic status of Tangipahoa Parish itself.