News Summary
The University of New Orleans is grappling with a budget deficit of at least $10 million, prompting extensive restructuring measures including layoffs and course cancellations. State support and adjustments in tuition are being implemented to manage the financial shortfall. With projected enrollment decreases, the university aims to refine its recruitment strategies and academic offerings. The transition under the LSU system represents a pivotal change for UNO, raising concerns about future stability and program viability.
New Orleans – The University of New Orleans (UNO) is facing a significant financial crisis, revealing a budget deficit of at least $10 million. President Kathy Johnson, who took office in 2023, is currently tasked with tackling these financial challenges stemming from years of overspending that had previously exceeded revenues by approximately $10-15 million annually.
Previously, UNO had accumulated about $15 million in debt before implementing recent corrective measures. For several years, federal pandemic aid allowed the university to mask its structural deficit, creating an illusion of fiscal stability. In response to this ongoing crisis, the state of Louisiana has provided crucial support, transferring UNO from the University of Louisiana system to the LSU system and supplying more than $20 million in state aid to help stabilize the institution.
In an effort to cut costs and balance its budget, UNO has undergone significant restructuring, resulting in the elimination of over 100 positions, affecting both filled and vacant posts. Layoffs and furloughs have become part of the adjustments aimed at addressing the budget shortfall. To manage class sizes and operational expenses, the university has opted to reduce the number of adjunct professors and cancel classes that are under-filled.
Critics of these changes express concerns that the reductions in faculty and course offerings will result in overcrowded classes and increased workloads for the remaining faculty members. To address these criticisms, Johnson has defended the necessity for tenured faculty to take on additional teaching responsibilities as part of the strategy to minimize student impact while stabilizing finances.
Despite the challenges faced by the university, the athletics department has not been a primary contributor to the financial distress, contributing only $250,000 to an overall budget of $85.5 million. Most funding for athletics comes from ticket sales and donations, with a recent new sports-gambling law potentially generating an additional $1-2 million annually.
Financial policies have also impacted the student body, as students with outstanding debts of over $750 will be unable to register for classes. In response to the financial challenges, UNO has increased tuition by 3%, which is beneath the maximum allowable increase of 10% set by a new state law. In an effort to support the student body, the UNO Foundation has contributed $200,000 to assist students struggling with unpaid bills.
Projected enrollment figures for fall 2024 indicate a decline of roughly 2,000 students compared with previous years, leading to a current projection of around 6,488 students. To tackle this expected dip in enrollment, UNO is planning to focus its recruitment efforts on nearby parishes such as Orleans, Jefferson, St. Bernard, and St. Tammany. The university is also considering updates to its academic offerings to better prepare students for evolving workforce demands.
As UNO transitions under the LSU umbrella, the university awaits guidance from the LSU transition team, with concrete plans for implementation expected by April. The Southern Association of Colleges and Schools Commission on Colleges is set to vote on this transition by June 2026, a decision that could have lasting implications for the university’s future.
Johnson has acknowledged student concerns about the changing identity of the institution, emphasizing that the essence of UNO lies within its community rather than its administrative structure. However, the university foresees the possibility of further budget cuts and program eliminations if enrollment does not improve, indicating that the outcome of these financial strategies remains uncertain.
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Additional Resources
- NOLA: UNO President Defends Budget Cuts
- Diverse Education: Dr. Kathy E. Johnson, University of New Orleans
- Fox 8 Live: Study Launched into Future of UNO Leadership
- Google Search: University of New Orleans budget cuts
- Forbes: $10 Million Deficit Leads UNO to Furlough Most Employees
- Encyclopedia Britannica: Financial Crisis
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NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
