IHL’s Bounds: ‘We’re in a Financial Crisis’

Adam Lynch

IHL Commissioner Hank Bounds (left) and Rep. Adrienne Wooten discuss the issue of merging three of the state's historically black colleges and universities.

by Adam Lynch
November 19, 2009

The Mississippi Board of Trustees of State Institutions of Higher Learning heard some rotten numbers at this morning's IHL meeting. Gov. Haley Barbour recommended a flurry of budget reductions for the state's eight colleges and universities, spurring Higher Education Commissioner Hank Bounds to speak on the possibility of extreme cuts in university staffing, the elimination of some education programs and tuition hikes.

"The decisions we make now will have a long-term impact on our universities. This is not an economic downturn anymore. We're in a financial crisis," Bounds said. "There may be a need to reduce workdays or pay. ... We're going to lose people with these types of cuts."

Bounds added that the board may need to come back in December to discuss the continuing effort for achieving cost efficiency.

Barbour recommended tuition hikes only for the Mississippi State University's School of Veterinary Medicine, though Bounds said all universities should probably consider tuition increases to keep their budgets' balanced for the years 2011 and 2012. But he recommended against matching the amount of cuts facing colleges with tuition increases.

The commissioner said the state is facing a projected a budget shortfall in 2011 of about $715 million and a $1.2 billion projected deficiency for 2012, with state universities and colleges facing a 12.8 percent budget reduction for 2011. In response, universities would likely need to restructure employee retirement benefits. Bounds relayed Barbour's recommendation that universities shift a proposed 1.56 percent increase in retirement benefits and $29.3 million of health-care costs onto current employees, and eliminate a 3 percent cost of living adjustment for employees up to age 55.

Bounds reiterated Barbour's recommendation to merge some universities—particularly the historically black colleges Mississippi Valley State University, Alcorn State University and Jackson State University—and combining the Mississippi University of Women with Mississippi State University. The mergers would save about $35 million, Barbour says.

Rep. Adrienne Wooten, D-Jackson, an Alcorn graduate, was openly furious at the prospect of the merger, which largely involved colleges that serve minorities.

"A lot of these universities have been up and running for well over 100 years. This is not the first time we've faced an economic bind, so why now do you say we should consolidate the HBCUs? When I look down and look at the numbers on the amount we're spending on all universities, HBCUs are getting a fifth of what some universities are receiving," Wooten told reporters. "To me, there's no comparison. You can talk about saving money, but if you're pushing a different agenda, then let's sit down and talk about that."

Bounds said he did not advocate for the governor's recommendation, though he did point out to Wooten that state money going to HBCUs was adjusted to reflect the lower attendance at those schools.

Board member Amy Whitten assured the meeting audience of about 60 that the board would be working in the best interests of every institution: "The board works under the assumption that each and every school is vital," Whitten said. "Each school is important to their region, and whatever decision we make will reflect that."

Meanwhile, board member Bob Owens suggested schools consider raising tuition for out-of-state students, explaining that about half the funding the state approves goes to out-of-state student education.

"It's like they're getting a bonus," Owens said.

Aside from advising against shifting the majority of the burden to tuition increases, Bounds said he would submit to the wisdom of individual university presidents on deciding where to make cuts. "Let the presidents do their job," Bounds advised. "All of our institutions have wonderful leaders, and we should let them take the lead on how to decide cost efficiency."

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