The University of New Orleans campus amidst financial challenges.
The University of New Orleans has laid off around 30 employees due to a $10 million budget shortfall. This decision follows previous furlough measures and aims to save $1.9 million. The institution is also grappling with long-term enrollment declines, with figures dropping significantly since Hurricane Katrina. To address financial challenges, UNO is reassessing its situation and exploring funding opportunities, while showing some optimism with increases in transfer and new student enrollments.
New Orleans – The University of New Orleans (UNO) has laid off approximately 30 employees in response to a significant $10 million budget shortfall. These layoffs are part of a broader effort to stabilize the university’s financial health and will save the institution an estimated $1.9 million, as reported by UNO’s chief financial officer Edwin Litolff.
This decision comes after the university previously implemented furloughs for 290 employees and consolidated various administrative positions to address ongoing budget challenges. Currently, UNO does not anticipate any further layoffs or furloughs, although faculty members are being offered voluntary furlough options, as the university cannot mandate furloughs for faculty.
UNO plans to reassess its financial situation following the processing of spring enrollment numbers and distribution of financial aid. With enrollment figures falling for nearly two decades, the university has struggled to recover from a substantial drop in student numbers following the levee failures related to Hurricane Katrina in 2005. Enrollment plummeted from about 17,000 students before the storm to roughly 6,000, with the fall 2024 semester reporting a total of 6,488 students.
The financial troubles faced by UNO are part of a wider trend affecting higher education in Louisiana, particularly after severe budget cuts during former Governor Bobby Jindal’s administration from 2008 to 2016. These cuts led to increased financial burdens on students, exacerbating enrollment challenges.
In addition to layoffs, UNO is actively working to better manage its operational costs. The university recognizes that adjustments to funding and enrollment levels are essential for long-term sustainability. Challenges also remain in handling student financial aid processes, which have further impacted enrollment and student retention rates.
To bolster its financial standing, UNO has hired lobbyists to seek federal funding support and is exploring potential public-private partnerships. The university’s administration is committed to preventing further budget cuts while focusing on strategies to increase enrollment numbers. In positive news, significant improvements have been observed, including a 60% increase in transfer student enrollment and a 20% increase in incoming freshmen enrollment for the upcoming fall semester.
Despite the ongoing financial challenges, university leadership expresses cautious optimism for the future. They stress the vital role of community support and the necessity of increased state funding in navigating these difficult times. The focus remains on ensuring that UNO can continue to provide quality education and maintain its position as an essential institution within the local community.
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