The INDsider -> Nathan Stubbs TUE, JAN 12 12:33PM by Nathan Stubbs

LITE takes budget hit, lays off five

The Louisiana Immersive Technologies Enterprise laid off five employees yesterday, drastic measures taken as a result of stringent budget cuts coming down from the state. LITE CEO Henry Florsheim says the LITE board was informed by UL Lafayette last week that its state revenues were being cut by 10 percent, or just over $300,000 annually. Just under 75 percent of LITE's revenue comes from the state, via UL.

It appears LITE is the latest victim of deep higher ed budget cuts coming down from the state. UL is currently grappling with a mid-year $4.61 million budget reduction, the third round of cuts since January 2009, totaling a decrease of 17.48 percent or $16.45 million.

"It was absolutely harsher than we expected," says Florsheim, who acknowledges that LITE knew a cut was possible. "We hoped that we wouldn't have a cut forced on us," he adds, "because of all the progress we've made and the projects that we've been involved with in the last year and the companies we've recruited to Lafayette. But the university's stance is that they're protecting their core services."

Florsheim says the layoffs included artists and business development and events staff at LITE. In addition, he says the center has cut its expense budget for travel, business development and building maintenance. The budget cuts also mean lights-out for the flashing light show that has been a staple of the glass egg outside the building each night. "If I'm having to lay off employees, we're not going to be doing that," Florsheim says. For now, he says the grim budget realities mean LITE will have to redouble its efforts to restore funding through the private sector.

"At this point, nobody knows what's going to happen with the state budget next year," Florsheim notes. "So our job is to develop as many projects as we can that generate revenue for LITE and to continue to work with companies like Pixel Magic that can add economic impact to the state so we can justify the state putting money back into LITE." 



Comments (23)add
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written by Holeinthedonut3 , January 12, 2010 - 10:10 pm
The concept of the LITE center is to make money, how's that going? Have they closed the gap from start-up to operational? If they layoff the business development and marketing department there's likelihood their sales will go up. What's the plan Hal?
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written by Pork and Beans , January 12, 2010 - 10:34 pm
"75 percent of LITE's revenue comes from the state, via UL."

So it's a taxpayer financed boondoggle.
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written by Wow... , January 13, 2010 - 03:08 pm
$27 million to build, and more than $3 million a year to run... and how much revenue have they generated in over 3 years of operation?

ummm... basically zero? time for UL to sell that place and get what they can.
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written by Nobody , January 13, 2010 - 03:16 pm
If there were $300,000 in cuts and they needed to cut "travel, business development and building maintenance" in addition to 5 employees, it doesn't seem to me that those employees were making a whole lot of money. That is, not a whole lot relative to what I've heard some people out there are making. I guess those people in charge making $100,000 or $200,000 a year think it would be too painful or embarrasing to give themselves a 50% pay cut in order to keep from having to lay people off or keep the lights on the egg at night.
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written by curiousgeorge , January 13, 2010 - 03:32 pm
i wonder if florsheim took a salary cut...
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written by Knowledge is power , January 13, 2010 - 04:58 pm
Wow sure is alot of gum flapping from people who probably know ZERO about what LITE does, the projects they are working on, or the many opportunities they have brought to Lafayette (Secretariat, Pixel Magic...just to name a few)! LITE has brought in companies and have worked on and are continuing to work on projects to make Lafayette a better place to live.

Many of these mean spirited comments are being fed by nothing more than ignorance!
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written by zzzzzzzzzzzzzzzzzzz , January 13, 2010 - 05:43 pm
uh, wait.
LITE is taking a hit from state funding and henry's big idea is to cut business development?
i thought LITE was supposed to be this big draw where businesses from around the world would come and hire LITE staff to do work for them and thus LITE would make a lot of money, or at the very least be self-sufficient.
Henry is way out of his league here. if he thinks that LITE will survive on state funding he is off base. Too bad that all the predictions about his inability to do this job have been borne out.
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written by Money is Power , January 13, 2010 - 06:19 pm
I guess those "few" projects/opportunities didn't generate enough money to keep those 5 people from getting laid off. Bummer. Truly sad.
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written by SoccerDad44 , January 13, 2010 - 06:28 pm
They really don't have a plan and they haven't generated any type of revenue. What does the LITE center do aside from regurgitate some vague mission statement about economic development? Marcus Brown has done way more for Lafayette in terms of the movie industry AND economic development and isn't consuming millions and millions of tax payer dollars to do it. Between LEI and LEDA, it's covered. Later, LITE.
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written by SoccerDad44 , January 13, 2010 - 06:29 pm
Oh, and hey "knowledge is power" - LITE didn't do any of those things. They just took the credit for them. Coming from someone who knows PLENTY about what they "do."
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written by Margaret Leblum , January 13, 2010 - 07:25 pm
In the meeting where Henry told the people that they were being laid off, he told him that there were "pay cuts across the board." I do wonder how much of a pay cut Henry took...

He also told those people that he was canning that the "lights on the egg would go dark for in memory of those" who were getting canned. What a cheese ball.
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written by Margaret Leblum , January 13, 2010 - 07:27 pm
Oh, and if Florsheim drops the name 'Pixel Magic' one more time, we'll be just as tired of hearing it as we are tired of seeing the same old projects they've been showing at their monthly open houses for a year and a half now. CREATE SOMETHING NEW. Impress us. Do SOMETHING. No wonder the state took some of your money away. You guys at LITE don't ever DO anything.
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written by Wow... , January 13, 2010 - 07:29 pm
LITE had nothing to do with Secretariat, except trying to take credit. Disney called Marcus Brown. That was all LEI.

As far as Pixel Magic -- 12 jobs, made possible by a generous incentive deal put together from LED in Baton Rouge. So what?

$40 million down a hole. Zero revenue in.

Time's up.
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written by FlyOnTheWall , January 13, 2010 - 07:47 pm
Henry should spend less time on Facebook and more time developing the company that he isn't qualified to be running. *ding* (that's the sound of his status update announcing that the egg will be dark tonight.)
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written by Geez , January 13, 2010 - 08:13 pm
"lights on the egg would go dark for in memory of those" who were getting canned.

That place is starting to become an embarrassment.
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written by northsidian , January 14, 2010 - 01:08 am
This is what happens in the real world. It's just this time the unqalified is laying of the qualified!! What say you boy!!
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written by Raspootin , January 14, 2010 - 03:13 pm
Wow, too bad so many are getting laid.
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written by Knowledge is power , January 15, 2010 - 02:07 am
How sad it is that some of you seem to revel in kicking someone when they are down! The state is cutting funding and UL, LITE and MANY other agencies are feeling the effects of these cuts. If you have less funding then you have to find ways to make cuts and sometimes, unfortunately, that means layoffs. Have you ever had to layoff people? Would you have the perfect words to handle such an awkward situation? You have alot of harsh things to say about Henry but I have to wonder Margaret, do you even KNOW Henry Florsheim? I'd have to say you do not, because most of the comments I see on this page do not describe the Henry Florsheim that I know. Stop disparaging a good and decent man who is working HARD to do something good for Lafayette. How easy it is to sit on on the sidelines and criticize those who are out there doing the heavy lifting!

And just because you don't see all of the projects LITE is working on don't just assume they don't exist! Oh and Disney used the LITE facilities technology while they were shooting Secretariat...shows how much some of YOU know!! So many doubting Thomases out there!
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written by FlyOnTheWall , January 15, 2010 - 06:36 pm
Yeah I bet that blackberry is really heavy lifting. There were A LOT of Lafayette locations used to shoot the Disney movie. The LITE Center didn't BRING them here. And my heart really does go out to all of those programs - particularly academic programs that are being affected by the budget cuts. But don't equate that with LITE's consistently flagrant floundering of funds and outlandish salaries. "And just because you don't see all of the projects LITE is working on don't just assume they don't exist!" - WTF - are you five?
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written by Price is Right , January 15, 2010 - 11:06 pm
Here's the problem with knowing Henry. You don't ever REALLY know what he thinks of you. And yes, that goes for you too, "Knowledge is Power". You think you know Henry- what he REALLY thinks of you?
Ask someone who has lost their job because they were foolish enough to trust this man.
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written by WordOnTheEgg , January 16, 2010 - 01:20 am
Knowledge of Power may be next to get cut in July. I don't think the layoffs are over and done with for LITE...unfortunately.

I'm very sorry to hear all of this is going on. I truly hope business picks up for LITE.
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written by NORTHSIDIAN SHOTGUN , January 16, 2010 - 05:16 am
IF KNOWLEDGE IS POWER, "KNOWLEDGE IS POWER", YOU ARE "ONE BRAIN -DEAD BABOSO". "DAS EUROPEAN FOR COULON" - A WORD, THAT IS RELATIVE TO MANY PEEPS IN THE AREA, MUST BE THE INBREEDING............
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written by northsidian , January 20, 2010 - 01:48 am
Price is Right: why would anyone give a rats a** what Henry Shoes thinks of them. He is just another carpet-bagger who got in the good-ole-boys club at the local chamber. They promote each other. That's what its all about my-brother!! You know the saying "it's not who you know it's who you ****!"
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