News Summary
A proposed legislation to transfer the University of New Orleans (UNO) back to the LSU System could incur over $81 million in costs for the state. Sponsored by Senator Jimmy Harris, Senate Bill 202 has passed initial Senate committees but faces funding uncertainties. UNO’s budget deficit and declining enrollment numbers highlight the challenges ahead. Lawmakers hope the transfer will revitalize UNO, yet concerns over resource allocation for other LSU campuses persist. As discussions continue, the future of UNO hangs in the balance, hinging on legislative decisions regarding funding and transition plans.
New Orleans – A proposed legislation to transfer the University of New Orleans (UNO) back to the Louisiana State University (LSU) System could cost the state over $81 million over the next five years. The ambitious plan is currently moving through state legislative committees but requires funding to be authorized before it can take effect.
The transfer plan, known as Senate Bill 202 and sponsored by Senator Jimmy Harris, has already passed through two Senate committees. However, as of March 7, 2023, the necessary funding has not yet been secured. If approved, the bill would require the Louisiana Legislature to allocate funds to cover the costs involved with the transfer.
The estimated cost associated with the transfer includes more than $40 million needed in the first fiscal year alone. This funding would go toward paying off existing debts at UNO, covering transition costs, and addressing a significant backlog of deferred maintenance. Currently, UNO faces a considerable budget deficit estimated at up to $30 million, exacerbated by declining enrollment figures.
Lawmakers see the transfer as an opportunity to revitalize UNO, which has experienced a substantial drop in enrollment since Hurricane Katrina. Enrollment peaked at approximately 17,000 students prior to the disaster, but has plummeted to under 6,000 in the present day. LSU’s Vice President of External Affairs noted that previous campuses under the LSU system have seen significant enrollment growth, raising hopes that a similar trend could be replicated at UNO.
The legislation includes provisions allowing the Legislature to impose “reasonable conditions” on the funding, which may necessitate a complete transition plan. It also aims to prevent the University of Louisiana (UL) System from obstructing the transfer and limits changes to funding, staffing, or debt without LSU’s approval.
Despite the optimism surrounding the potential transfer, concerns have emerged among some lawmakers about the implications this move may have on LSU campuses in northwest Louisiana, particularly those in Eunice and Alexandria. These concerns are fueled by the perception that resources may be diverted away from these campuses due to the focus on UNO’s transition.
Various stakeholders, including members of the LSU Board of Supervisors, have expressed apprehension about the timing of the transition and the absence of a comprehensive plan to guide it. The successful transition requires approval from both the House of Representatives and Governor Jeff Landry, who has proposed a “standstill” budget aimed at maintaining previous spending levels amidst ongoing efforts to cut state expenditures.
Recent state revenue forecasts indicate an additional $139 million will be available for the next fiscal year, but it remains uncertain whether this will be sufficient to accommodate the proposed funding for UNO. The Louisiana Board of Regents has already given the green light to the transfer of UNO back to LSU, reflecting a growing belief among legislative leaders that this move could bolster the financial stability of the university and enhance enrollment numbers.
UNO is currently grappling not just with enrollment and budget challenges but also with a significant deferred maintenance backlog exceeding $2 billion, in addition to various contractual debt obligations. A feasibility study conducted by state officials underscores UNO’s vital role in the educational and economic development of the New Orleans area, highlighting successful programs in disciplines such as jazz studies and cybersecurity.
As the situation unfolds, the future of UNO will hinge on the state legislature’s decisions regarding funding and the establishment of a clear, actionable plan to ensure a smooth transition back to the LSU System. The ongoing discussions reflect a critical moment for the university and its stakeholders as they navigate the complexities of this significant institutional shift.
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Additional Resources
- Lai Illuminator: UNO Transfer Cost
- WWLTV: Louisiana Senate Approves UNO Transfer
- Higher Ed Dive: UNO Merger with LSU System
- Google Search: University of New Orleans transfer to LSU system
- Encyclopedia Britannica: University of New Orleans
