The University of New Orleans today received approval from the University of Louisiana System Board of Supervisors to implement furloughs for the remainder of fiscal year 2024-25 as part of a broader effort to address a significant structural budget deficit. 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. 

“This is a difficult time for the University of New Orleans community,” said UNO President Kathy Johnson. “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.” 

UNO’s recently launched UNO 2030 strategic plan remains the University’s north star, guiding its decisions during these turbulent times. This plan, which outlines a vision for long-term success, is anchored in a commitment to student success, research and community engagement. "UNO’s mission and vision remain at the heart of every decision made,” President Johnson emphasized. “As an urban public research university, we are committed to providing educational excellence and empowering our students to succeed in the dynamic global economy. Our strategic plan ensures we continue to align our resources and efforts with these goals, even as we navigate immediate financial challenges.” 

“UNO is also deeply committed to strengthening the city of New Orleans by producing graduates who go on to become leaders in fields that directly contribute to the local economy and enrich our community,” President Johnson added. “Our university is not just an academic institution; it is an integral part of New Orleans’ social, cultural and economic fabric. We take seriously the responsibility to preserve that legacy and to ensure the success of our students, faculty and staff.” 

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. 

Despite these efforts, the budget gap necessitates further action, leading to the decision to implement furloughs. The university is now implementing:
 
•    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.

UNO is committed to providing support for affected employees, including access to counseling services, job placement assistance and guidance on unemployment benefits. 

“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.” 

Looking forward, the UNO 2030 strategic plan will continue to shape its efforts to strengthen recruitment and retention, improve operational efficiencies and secure new funding sources through grants and private-sector partnerships. The University is also investing in academic programs that align with workforce needs, particularly in fields critical to New Orleans' continued growth and innovation. UNO will advocate for increased state support for higher education and explore creative partnerships to sustain and enhance its educational offerings. 

“We are confident that these difficult decisions will position the university for sustainable growth and success,” President Johnson said. “UNO remains deeply committed to its mission and its role as a driver of economic development and cultural vibrancy in New Orleans. Together, with the ongoing support of our community and partners, we will secure UNO’s future as a vital asset to New Orleans and beyond.” 

For more information on the budget alignment process, please visit www.uno.edu/budget-alignment.