UNO is nearly $20 million in debt and may transition back to the LSU system for financial support (Newell & State Rep. Matthew Willard)

Newell Normand and State Representative Matthew Willard discuss the future of UNO and the potential timeline of placing it back under the LSU umbrella
University of New Orleans
Photo credit UNO

Clancy Dubos credits UNO for building the middle class in this region, and I couldn’t agree more.

I’m a proud UNO grad. WWL morning host Tommy Tucker is a proud UNO grad. So, when it comes to UNO, it’s hard for me not to be biased. I want the institution to thrive.

Right now, though, UNO is fighting for financial survival. They’re running a multi-million dollar annual deficit, and enrollment is struggling.

One solution lawmakers propose is that the school be moved back under the oversight of LSU. Keep in mind that the school was moved from the LSU system to the UL system in 2011.

As the only public research facility in New Orleans, we have to ask, what are the implications of moving UNO back under the LSU board of supervisors? Is it the right decision? Will it even make a difference?

Matthew Willard, LA State Representative for District 97, represents the area where UNO is located. He came on the show to discuss these questions, given that he’s been up close to discussions surrounding UNO’s future.

What’s happening at UNO?

Willard: Currently, UNO has a $5 million deficit for the current school year. They have about another $14 million in long-term debt…We need to rally the troops and get together and do everything that we can to save the University of New Orleans and make sure that its future remains in place so that can keep providing a solid middle class and upper middle class for the greater New Orleans area and state of Louisiana.

What’s causing the debt?

Willard: Long-term debt stems from old costs associated with child care services that the university provided for faculty and staff, food service contracts, construction contracts, athletic department contracts, and projects that were bonded out related to construction…I spoke to President Johnson last night. She thinks she's in a good position to deal with the immediate deficit.

What is UNO doing about it?

Willard: UNO has already done some layoffs and furloughed a lot of faculty and staff and consolidated departments. There's angst on both sides. The students, faculty, staff, alumni, everybody is displeased that those actions were taken, but at the same time, we have to do something. We have to do something to balance their budget. It's never gonna be an easy decision, which is why I fully support this study that the Board of Regents will conduct.

What’s the timeframe for the Board of Regent’s study?

Willard: They have up to a year to complete it, so I don't think we'll see any legislation this session to transfer from the UL system to the LSU system, but it's a step in the right direction and hopefully we can get support in Baton Rouge to secure the funding that UNO needs right now to steady the ship.

How would the LSU transfer happen if put into effect?

Willard: You cannot transfer a university from one system to another system without the Board of Regents conducting a comprehensive study. It was done about a decade or so ago when the system transferred from LSU to the UL system. And so the request from President Henry and Speaker DeVille is for the Board of Regents to start looking at the pros and cons of moving UNO from the UL system to the LSU system. We need that objective information. We want to know if UNO is in the best place right now or would it be in a better position if it were under the LSU umbrella.

Is there a long-term strategy to help secure UNO?

Willard: The crux of the issue for UNO is the immediate need to fix the deficit because of the decrease in student enrollment. So the fix right now and long term is to increase enrollment at UNO. How do you go about doing that? What is the best pathway forward?...We're hoping to get some of that information from the study that the Board of Regents puts together. I will say it's probably more attractive for a student outside of the Greater New Orleans Area, certainly out of state, if they were looking at attending UNO and seeing it tied to the LSU branding.

What about looking at UL at a macro level? Is it just UNO that’s struggling?

Willard: A lot of the universities throughout Louisiana are struggling right now. And so we need to make sure that they're receiving what they need to serve the community. And so that's part of what this study is going to tell us once the Board of Regents wraps up their work. It could be an idea for the Board of Regents to do more studies on universities throughout the state, you know, to see where we really are and if there are any changes that we can make to benefit the universities across Louisiana.

That's part of the reason why the study is very important. I think a lot of members would have apprehension if we were to go into session requesting $10 million for UNO without a plan to show that it will right-size the ship and stop the bleeding. So we need some information there. But right now, UNO needs a lifeline. And I think there are enough members in the legislature who understand how important UNO is to establishing and growing the middle class of Louisiana. So I'm very optimistic that we'll be able to secure whatever we need to put UNO on better footing while we work out the long-term plan.

Featured Image Photo Credit: UNO