My guess that it's paid by student fees and not by the university directly.
I've never felt unsafe on campus. I definitely wouldn't go walking too far outside of campus in some parts. But in general, right around campus is safe.
The two murders were an anomaly. They also occurred in the graduate student housing, which is on the outskirts of some shady neighborhoods. Since that time, they have upgraded the security systems in that housing. In addition, since that time, I think there have been numerous undercover cops placed on campus.
The LSUPD website,
LSU Police , has good information if you are concerned. Here's crime statistics for the last 3 years: http://appl003.lsu.edu/PubSafety/lsupolice.nsf/$Content/Crime+Statistics?OpenDocument