LSU officially prepares for bankruptcy
The following is an editorial released by Louisiana Progress Action on the announcement of Louisiana State University preparing to file for bankruptcy.
In a completely foreseeable move yesterday, Moody’s Investors Service downgraded Louisiana State University’s credit outlook from “positive” to “stable”. Moody’s took action for two reasons in particular: the severe budget cuts currently proposed for higher education and the continued control over tuition held by the Louisiana Legislature. A lowered credit rating for LSU means increased difficulty in borrowing money for the institution, which could seriously impact needed construction on campus.
Simultaneous to this news, LSU President F. King Alexander announced that paperwork has been started for “financial exigency” which is the equivalent of bankruptcy for higher education institutions. This news should underscore the severity of the situation facing not only LSU but also all public higher education institutions in our state.
News of the decrease in LSU’s credit outlook was announced by Senator Appel during the Senate Education Committee hearing yesterday, coming in the middle of tense conversations between one of Governor Jindal’s representatives and several committee members regarding the Governor's lack of proposed new revenue generators for higher education but simultaneous insistence that TOPS funding not be capped.
We cannot convey to you how serious this situation is. It feels like folks are waiting for a solution that doesn’t seem to be coming willingly. We need you to speak up. Call Governor Jindal today and demand new revenue streams for higher education. Governor Jindal gives hundreds of millions of dollars away to the film industry every year. It’s time to shift priority. Our students are counting on us.
Call Governor Jindal now: 225-342-7015