The University of New Orleans (UNO) will furlough approximately 290 staff and faculty members as part of ongoing efforts to close a $10 million budget deficit driven by low enrollment. This follows previous cost-cutting steps, including layoffs, administrative reductions, consolidating five colleges into two, and closing facilities. President Kathy Johnson says the decision was hard but necessary to secure UNO’s future.
“The recommendation that I’m making to you this morning is not being made lightly. It’s incredibly difficult. In fact, it is gut-wrenching.”
UNO CFO Edwin Litoff says the furloughs aim to save $1.7 million, with a hiring freeze projected to reduce the deficit by an additional $2.5 million. However, Litoff acknowledges that further cuts, layoffs, and retirement incentives will be needed.
“After looking at that and looking at what we asked departments to cut out of the $10 million, there’s no way we’re going to make it to the end of the year.”
Efforts to restructure UNO last year yielded limited savings, contributing to the current crisis, as the university faces additional debt obligations and potential revenue shortfalls. Litoff says UNO also plans stricter tuition collection.
“They have not been required to pay their fees in the past. We implemented a hold. So, if a student owes a thousand dollars they can’t schedule classes for next semester.”
The furlough plan, approved by the University of Louisiana System Board, exempts some faculty and employees while scaling furlough lengths based on salaries. Employees earning over $100,000 face the longest unpaid leave periods.
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