News Summary

The University of New Orleans faces a $10 million budget deficit, prompting a furlough plan affecting around 290 employees. This plan aims to save $1.7 million while implementing hiring and budget freezes. Exemptions include full-time teaching faculty and certain staff positions. UNO has seen a significant decline in enrollment and is strategizing long-term improvements through its UNO 2030 plan. Support services for affected employees are also in place to assist during this transition.

Major Changes Coming to UNO: Furloughs to Tackle Budget Shortfall

In New Orleans, a significant financial storm is brewing at the University of New Orleans (UNO) as the institution tackles a hefty budget deficit of $10 million. In an effort to address this pressing issue, the university plans to implement widespread furloughs affecting a notable portion of its workforce.

The Furlough Plan Unfolds

Under a plan that received the green light from the University of Louisiana System Board of Supervisors, the furloughs will remain in effect until the end of the fiscal year, specifically June 30. Nearly every employee earning more than $30,000 annually will be impacted. But not all furloughs are created equal; different salary brackets will have staggered furlough requirements. Employees in the lower salary brackets will be expected to take off a day and a half every two weeks, while those in higher brackets will have to take off three days within the same timeframe.

In total, around 290 out of 575 full-time employees will be required to participate in the furloughs. However, not everyone will feel the pinch; full-time teaching faculty, tenured faculty who aren’t in administrative roles, staff on H-1B visas, those in grant-funded positions, athletic department staff, part-time employees, and contract employees are exempt from this plan. It’s important to note that non-tenured faculty and tenured administrators are not off the hook—they will also be required to take furloughs.

Crunching the Numbers

The university is estimating that this furlough plan alone could save approximately $1.7 million as part of its broader strategy to close the budget gap. With an operating budget that needs to shrink from $100 million to $85 million, the urgency is palpable, given that UNO has seen its enrollment dip by 19% from 2018 to 2023 and a staggering 41.5% decline since 2010. To put it plainly, the university is in a tough spot, having recorded an operating loss of $61.7 million in the last fiscal year.

Additional Cost-Cutting Measures

But the belt-tightening doesn’t stop there. UNO is also putting a hiring freeze and budget freeze into effect, aiming to save an additional $2 million. As the situation evolves, the university is keeping the door open for possible layoffs and more furloughs if they deem it necessary to further adjust the budget. As part of these efforts, they plan to fully assess the financial landscape once student financial aid is distributed in the upcoming weeks.

Support for Affected Employees

The university is aware of the challenges faced by those affected, and they intend to provide support for job placement assistance, mental health services, and guidance on unemployment benefits. This humane approach aims to help ease the transition for many employees who may be facing uncertain times ahead.

Planning for the Future

UNO faces significant pressure to manage structural deficits that have been exacerbated by years of declining enrollment and rising costs. The administration recognizes the need to adapt its budget in accordance with current revenues and challenges. To ensure long-term success and stability, UNO has emphasized a focus on strengthening recruitment and retention through its UNO 2030 strategic plan.

As the university navigates these challenging waters, there’s hope that these tough decisions will lead to a healthier, more sustainable future for UNO and its community.

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