From Idaho to Louisiana to Kentucky, public colleges and universities are facing a difficult fiscal reality as state lawmakers grapple with budget shortfalls, philosophical debates about higher education’s value, and the compounding effects of inflation.
In Idaho, the state legislature approved millions of dollars in cuts to higher education last week, sending House Bill 876 to Gov. Brad Little’s desk. Coming on top of holdbacks already in place for the current fiscal year, the measure means Idaho’s universities will receive less state funding in fiscal year 2027 than they did this year. The bill affects Boise State University, the University of Idaho, Idaho State University, Lewis-Clark State College, community colleges and career-technical education programs, though some health education programs faced smaller reductions.
The floor debate in the Idaho Senate exposed a sharp divide. Some lawmakers questioned the state’s obligation to fund higher education at all. Sen. Glenneda Zuiderveld, R-Twin Falls, suggested universities could instead be supported through tuition, donations and charitable giving. Others pushed back on that view, with Sen. Janie Ward-Engelking, D-Boise, warning of lasting consequences. According to the Idaho Statesman, Ward-Engelking said on the Senate floor: “It’s going to impact our children and grandchildren for years to come. This ship will not be turned around easily, and will have long-term, constant economic consequences.”
The effects are already being felt on campuses. Idaho State University has laid off 45 staff members and merged two colleges. The University of Idaho, which has seen 10 consecutive semesters of enrollment growth, has delayed hiring, implemented voluntary retirement incentives and expects to cap enrollment in programs like engineering—limiting, a university spokesperson said, the number of graduates prepared to meet workforce demand in the state.
In Louisiana, the problem stems less from direct cuts than from years of flat budgets against the backdrop of rising costs. Commissioner of Higher Education Kim Hunter Reed told state lawmakers this week that if funding had kept pace with inflation over the past decade, higher education would be receiving roughly $850 million more than it currently does—a figure exceeding the entire budget of LSU’s main campus. As reported by the Louisiana Illuminator, Reed told lawmakers: “To fully fund higher education is an $850 million price tag, which I know this legislature does not have, but we do need to continue to invest in the education providers who are developing talent so there are more opportunities for our people.”
The University of Louisiana at Lafayette and the University of New Orleans are among the hardest hit, each carrying multi-million-dollar deficits. At UL Lafayette—the state’s only public R1 university besides LSU—a $25 million deficit was worsened by $10 million in athletics costs alone. Athletics spending across the state is a compounding factor, as nearly every college program in Louisiana runs at a deficit save for LSU. Demographic shifts and enrollment declines at several institutions have added further pressure.
Kentucky’s situation offers a somewhat different trajectory. The state’s Senate Republicans moved this week to reverse higher education cuts passed by the House, proposing instead to fund postsecondary institutions at current levels with an additional 1% increase per fiscal year over the biennium. The proposal also includes a $15 million boost to performance-based funding. The Kentucky Council on Postsecondary Education, which had previously warned that House cuts could force difficult decisions affecting student services and operations, responded positively to the Senate’s approach.
Still, scrutiny over spending—particularly at Kentucky State University, the state’s only public historically Black university—has complicated discussions. Senate budget leaders called for investigations into two contracts entered into by a prior KSU administration, though the university’s current leadership expressed full willingness to cooperate. As reported by the Kentucky Lantern, KSU spokesperson Michael Strysick said: “As stewards of taxpayer dollars, the University welcomes any review that can help strengthen accountability, streamline services, and better serve students and taxpayers.”
Taken together, the fiscal pressures facing public higher education across these states reflect a broader national tension between constrained state budgets and the growing demands placed on universities to develop workforce talent, support enrollment growth and contain costs.
