Efforts to address a budget crisis at the UNO today have the school telling many employees they are being furloughed ahead of expected layoffs.
“This is a difficult time for the University of New Orleans community,” said UNO President Kathy Johnson said in a statement. “We deeply regret the impact these actions will have on our employees and their families. However, these steps are necessary to overcome our current financial challenges and secure the university's future. We remain committed to transparency and to supporting those affected during this transition, and we believe that UNO will emerge from this.”
The university today received approval from the University of Louisiana System Board of Supervisors to implement furloughs for the remainder of fiscal year 2024-25.
A news release outlines some details of the move:
• Furloughs: Temporary unpaid leave for eligible full-time employees for at least the remainder of the 2024-25 fiscal year. Furloughs do not affect: those with tenure and not in administrative roles, those on an H1B visa, those in positions fully funded by grants, those with athletic contracts, part-time employees and contract employees. Plan approved by University of Louisiana System Board of Supervisors on Thursday, January 16, 2025.
• Anticipated Layoffs: A reduction of selected occupied positions during the spring semester.
Officials say this is part of a broader effort to address the mounting budget deficit, but did not say how many people will be furloughed or laid off.
Enrollment has significantly dropped at UNO. There were some 17,000 students before Hurricane Katrina. That fell to about 6,000 after the storm. Since then the school has struggled to rebuild the ranks. It was just shy of 6,500 in 2024.
"These measures, while challenging, are critical to ensuring the university’s long-term financial stability and its ability to deliver high-quality education and research," according to the release.
The release goes on to say:
The University’s budget shortfall is driven by several factors, including declining enrollment and rising operational costs. During the past year, UNO leadership has taken a series of decisive steps to address these financial challenges and minimize the impact on students and employees. These proactive measures include:
• Cost-Cutting Measures: UNO implemented a hiring freeze and spending freeze, eliminated vacant and nonessential positions, reduced the number of administrators and the amount of administrative expenses, and shrunk the campus’ physical footprint to reduce utility and maintenance expenses.
• New Revenue Streams: UNO is actively pursuing partnerships with local businesses and applying for additional federal, state and foundation grants to support research and workforce development initiatives.
“While these actions are necessary, we are deeply sensitive to the hardship they undoubtedly will cause. We remain fully committed to supporting those who are affected through this transition,” added President Johnson. “Our focus remains on protecting UNO’s academic mission and its vital role in the New Orleans region. We are pursuing long-term strategies to increase enrollment, secure new funding, and enhance operational efficiency to avoid similar measures in the future.”