Wednesday, May 29, 2024

Report: University of Louisiana system’s revenues were down, expenses were up in 2022

by BIZ Magazine
back of graduate's head

By Victor Skinner | The Center Square contributor

The University of Louisiana System’s total expenses were up while revenues were down in fiscal year 2022, due in part to student enrollment declines and student loan forgiveness, according to the Louisiana Legislative Auditor.

Auditor Mike Waguespack issued an audit report for the University of Louisiana System last week that shows the system’s overall net position went from negative $73 million on June 30, 2021 to a positive $21 million on June 30, 2022, a roughly 129% increase.

Total system revenues exceeded expenses by $94 million, down from about $155 million the year prior, as student enrollment decline reduced revenues from tuition and fees by $34 million, according to the report.

The system collected more than $555 million in student tuition and fees, net of scholarship allowances of $209 million, the LLA reports.

“In the prior year, State appropriations were reduced and partially replaced by Higher Education Emergency Relief Funds, and in the current year, the State appropriations were restored,” the report read. “Also, in 2022, additional State appropriations were provided for formula adjustments, faculty pay increases, mandated cost increases, and additional one-time appropriations were provided.”

Operating revenues increased by about 5.5% to $954 million in FY 2022 as a result of increases in state and federal grants, auxiliary enterprise revenues, and offset by the decrease in tuition. Operating expenses dropped by 1.6% to $1.46 billion over the year prior.

The system’s nonoperating revenue declined by $188 million in FY 2022, or 36.2%, due to a Historically Black Colleges and Universities Loan Forgiveness Program that eliminated significant debt at Grambling State University, and hurricane insurance recovery funds for McNeese State University.

“Nonoperating revenues (expenses) fluctuate depending upon levels of State appropriations, interest earnings/expense, and other nonoperating revenue. The change in nonoperating revenues minus nonoperating expenses amounted to $560 million in 2022 from $694 million in 2021 and is attributable to decreases in Higher Education Emergency Relief Funds, investment loss in 2022 compared to investment income in 2021, and debt relief provided by the HBCU Loan Forgiveness Program during 2021 and insurance recoveries received during 2021.”

The nonoperating expenses were offset by a 49.5% increase in state appropriations.

The system’s total assets decreased by 1.6% to $2.74 billion, while total liabilities decreased by 16.9% to $2.6 billion, according to the report.

The system’s total net bond debt was $664 million at the end of FY 2022, down about $19 million from FY 2021.

The total net pension liability for the system was more than $1.2 billion, while obligations for other post employment benefits totaled $926 million at the end of FY 2022. Total system liabilities was $3.1 billion, according to the report.

You may also like

Update Required Flash plugin