Louisiana Legislators Propose Transfer of UNO to LSU System

Categories: College University AthleticsCollege/University NewsEducation

University of New Orleans stakeholders discuss potential transfer back to LSU for better financial stability.

News Summary

In response to a financial crisis, Louisiana legislators are advancing a proposal to transfer the University of New Orleans (UNO) back to the LSU system. The decision follows a significant budget shortfall of $30 million exacerbated by declining enrollment and state funding. Senate Bill 202 has passed the Louisiana Senate, with a full House vote expected. If approved, LSU aims to revitalize UNO’s financial state, addressing a historical enrollment drop from over 17,000 to around 6,000 since Hurricane Katrina.

New Orleans, Louisiana — In response to a significant financial crisis, Louisiana legislators are moving to transfer the University of New Orleans (UNO) back into the Louisiana State University (LSU) system. The decision follows UNO’s alarming budget shortfall of $30 million for the current fiscal year, a situation exacerbated by dwindling student enrollment and declining state funding.

The Louisiana Senate has passed Senate Bill 202, which aims to facilitate the governance transition, while the House Education Committee approved the bill on May 29, with a full House vote anticipated before the legislative session concludes. Approval from the Southern Association for Colleges and Schools is also necessary before implementation can proceed. UNO President Kathy Johnson must file this request for a governance change by August 1.

The transfer proposal follows a recommendation from the Louisiana Board of Regents, which suggested reverting UNO to the LSU system on March 26 after conducting a thorough review. LSU’s interim president, Matt Lee, affirmed the university’s commitment to revitalizing UNO should the transfer be sanctioned. Lee emphasized the potential to leverage LSU’s resources to improve UNO’s financial standing and student enrollment.

Historically, UNO was part of the LSU system from its inception in 1958 until its shift to the University of Louisiana system in 2011. Since Hurricane Katrina in 2005, UNO has witnessed a drastic decline in enrollment, dropping from over 17,000 students to around 6,000. Efforts to stabilize its financial situation have been hampered by a stark reduction in state funding, which has plummeted by approximately 45% over the last 20 years.

The transition is projected to cost about $81 million over five years, primarily aimed at addressing UNO’s financial difficulties. The state budget proposal includes allocations of $20 million to settle UNO’s debts and $450,000 earmarked for conducting a financial audit. Following the audit’s conclusions, a transition committee will be established within LSU to devise recommendations tailored to stabilize UNO.

Both the UL System Board of Supervisors and LSU will work in concert to ensure a seamless transition, which necessitates careful management of existing budgetary concerns. However, stakeholders have raised apprehensions regarding the rapid pace of the transition process and its potential ramifications on ongoing UNO operations.

Despite past challenges, there is cautious optimism that this transfer could restore enrollment numbers and financial stability to UNO, as officials are hopeful that the benefits of becoming part of the LSU system will outweigh the risks associated with such a change. The urgency of addressing UNO’s budget crisis has catalyzed these discussions, with many in the education sector emphasizing the necessity of swift action to preserve the university’s future.

As the legislature moves forward, the upcoming decisions will significantly influence not only the immediate fiscal landscape of UNO but also its long-term sustainability and growth as an educational institution.