University of New Orleans Confronts Serious Financial Crisis

News Summary

The University of New Orleans is facing a financial crisis marked by a $10 million budget deficit, leading to significant staff cuts and a drop in student enrollment. Despite past rebounds, enrollment has dropped to 6,488 from over 17,000 in 2004. To mitigate the crisis, the university is implementing furloughs and assessing low-enrollment degree programs while seeking community and alumni support to ensure sustainability.

New Orleans Faces University of New Orleans Financial Crisis

The University of New Orleans (UNO) is grappling with a severe financial crisis, highlighted by a staggering $10 million budget deficit. As part of its efforts to mitigate this financial strain, the university has permanently eliminated 101 positions since the summer of 2024, which includes nine layoffs during the summer, 62 vacant positions, and an additional 30 layoffs in January 2025.

UNO’s situation is exacerbated by a drastic decline in student enrollment, which plummeted to 6,488 students in the fall of 2024, a significant drop from 17,350 students enrolled in 2004. Although enrollment rebounded to nearly 12,000 students after Hurricane Katrina, it has since seen a steep decline.

Cost-Cutting Measures and Future Outlook

In response to financial difficulties, UNO has received approval for furloughs affecting employees earning $30,000 or more. This initiative is intended to further trim operational costs as the administration navigates the fiscal crisis. Alongside staff cuts, the university is also strategizing to phase out low-enrollment degree programs, currently evaluating approximately 10 programs that are under scrutiny.

University president Kathy Johnson, who assumed her role in the fall of 2023, acknowledged she was unaware of the full extent of the financial issues when she took office. Johnson is actively looking to understand the specific needs of current and prospective students in order to reverse the trends of declining enrollment.

Operational Challenges and National Context

The university faces additional challenges driven by rising operational costs linked to inflation, compounded by a nationwide decline in the college-age population. A poorly timed transition to a new student information system has further hampered the university’s efforts, creating issues such as difficulties in posting financial aid to student accounts. These operational issues have aggravated the university’s financial woes.

In discussions about recovery, university officials have indicated that further layoffs might be necessary unless they can stabilize their financial situation. Ongoing improvements could involve consolidating financial operations across the University of Louisiana System Board, which encompasses nine universities, to help streamline processes and reduce costs.

Community Support and Alumni Engagement

The UNO Alumni Association has emphasized the pressing need for community support to ensure the university’s sustainability and to maintain its educational offerings. In light of the current situation, alumni are reminded of their collective responsibility to contribute to UNO, whether through financial donations, mentorship initiatives, or advocacy efforts.

As the University of New Orleans navigates through this difficult period, collaboration and active involvement from alumni and community members may be crucial in overcoming these financial challenges and securing the future of the institution.

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Additional Resources

• NOLA: Distinguished Alumni Reflect on UNO’s Contributions
• WDSU: UNO President Talks Furloughs and Layoffs
• Biz New Orleans: Investment in University of New Orleans
• LA Illuminator: UNO and LSU Discussion
• NOLA: UNO Distinguished Alumni Call for Support
• Wikipedia: University of New Orleans
• Google Search: University of New Orleans
• Google Scholar: University of New Orleans
• Encyclopedia Britannica: University of New Orleans
• Google News: University of New Orleans