Eight public universities in Louisiana have been placed on a watch list for credit-ratings downgrades by Moody’s Investors Service. In a news release on Monday, Moody’s said the review was a direct result of looming cuts in state funding for Louisiana’s public universities.
According to the release, the Moody’s review will look at each of the institutions’ “ability to adjust to the timing and magnitude of state funding reductions and potential enrollment volatility.”
In response to the Moody’s announcement, Gov. John Bel Edwards of Louisiana, a Democrat, issued a statement saying the notice “should serve as a wake-up call for anyone who thinks we can simply cut our way out of this crisis, and I am hopeful this will bring folks to the table to work with me to avoid making these cuts that will have a negative long-term impact on higher education in this state.”
Mr. Edwards, who recently took office, has said that if the Louisiana Legislature doesn’t vote to raise taxes, several parts of the state’s higher-education system are at risk of shutting down, including Louisiana State University’s elite football program.
The institutions on the watch list are: Louisiana State University, the LSU Health Sciences Center in New Orleans, Louisiana Tech University, McNeese State University, Southeastern Louisiana University, the Southern University system, the University of Louisiana at Monroe, and the University of New Orleans (research and technology).
