Below is a Kennedy statement and a Moody's Investors Service report:
In a new report, Moody's Investors Service warns that Louisiana's public universities are ill-equipped to withstand further state budget cuts after already suffering the deepest reductions in the nation, State Treasurer John Kennedy announced Monday.
"Moody's is putting us on notice that it will reduce the credit ratings of our universities and community colleges if the Legislature continues to cut higher ed funding," said Treasurer Kennedy. "We've cut our college campuses by $700 million since 2008. We've made deeper cuts than any other state. Enough is enough."
According to Moody's, the credit quality of public colleges in Louisiana is lower than the median A1 nationally. Moody's attributes the low credit quality to historically weak state funding, anemic operating performance and limited liquidity.
"After five years of the deepest funding cuts to public higher education in the nation and significant expense reductions, these universities are ill-equipped to face additional credit stress," Moody's said.
The report can be viewed here.