Louisiana Legislators Push for UNO to Rejoin LSU System

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A vibrant campus of the University of New Orleans amidst transitions in governance.

News Summary

Louisiana legislators are advancing Senate Bill 202, which aims to transition the University of New Orleans (UNO) back to the LSU System. This decision comes amid significant financial difficulties, with UNO facing a $30 million budget shortfall. While the transition has received support from the Senate Education Committee, concerns remain regarding the lack of a comprehensive transition plan and its potential impact on the state’s higher education landscape. The proposed plan includes a mandatory transition timeline set for April 2026, which coincides with the deadline to inform accreditation bodies of the governance change.

New Orleans, Louisiana – Louisiana legislators are progressing with Senate Bill 202 to transition the University of New Orleans (UNO) back to the LSU System. This decision comes amid a significant financial crisis at UNO, which has reported a budget shortfall of approximately $30 million. The bill, filed by State Senator Jimmy Harris, a Democrat from New Orleans, has gained unanimous approval from the Senate Education Committee.

The proposed transition reverses a decision made 14 years ago when UNO was moved from the LSU System to the University of Louisiana System. The current budgetary challenges at UNO have resulted in a spending freeze, layoffs, and furloughs for staff. These financial issues primarily stem from a dramatic decline in enrollment, which has plummeted from about 17,000 students before Hurricane Katrina to roughly 6,488 in the fall of 2024. This stark decline contrasts with the enrollment growth seen at other institutions within the LSU System.

Amidst the financial challenges, Julie Stokes, a member of the University of Louisiana Board of Supervisors, has voiced opposition to the transition, expressing concerns over the absence of a comprehensive transition plan. Senator Harris’s bill mandates the creation of a transition plan by April 1, 2026. This timeline aligns with the deadline for UNO President Kathy Johnson to inform the Southern Association of Colleges and Schools Commission on Colleges about the proposed change in governance.

While the Louisiana Board of Regents has already approved the transfer back to the LSU System, further legislative approval and confirmation from the Southern Association of Colleges and Schools Commission on Colleges would still be necessary for the transition to proceed. Additionally, there are apprehensions regarding the composition of the transition team that would oversee this process. Stokes advocates for the inclusion of individuals from both LSU and University of Louisiana system boards to ensure comprehensive representation in the transition.

Alongside the budget cuts, UNO has undergone significant structural changes, including the consolidation of its five colleges into two and the closure of several campus buildings. The Board of Regents has indicated that the decline in enrollment has adversely affected tuition revenues, which now constitute approximately 60-65% of UNO’s operating budget. State financial support, which previously made up a more substantial portion of UNO’s budget, has dwindled to only 18%, significantly impacting the university’s financial stability.

Concerns have been raised regarding how the transition may affect not only UNO’s financial obligations but also the operational dynamics of other universities within the state. However, proponents of the transition argue that returning UNO to the LSU System could provide a strategic vision intended to revitalize the university and position it to better meet the workforce needs of the Greater New Orleans region.

This proposed transition, rooted in historical shifts in governance, paves the way for a potential reinvigoration of UNO’s programs and services, responding to both current financial pressures and future educational demands. LSU previously oversaw UNO for over 50 years before the shift to the UL System in 2011, a move supported by many of the university’s alumni and supporters who felt marginalized during the earlier governance structure.

As the legislative process unfolds, UNO’s future remains uncertain, hinging on the negotiations and strategic planning required to navigate this significant transition effectively.