NEW ORLEANS – When the Louisiana Board of Regents unanimously recommended transferring the University of New Orleans (UNO) from the University of Louisiana System back to the Louisiana State University (LSU) System on March 26, it caused a ripple throughout the region.
The move aims to address UNO's ongoing financial and enrollment challenges which include a $10 million budget deficit leading to spending freezes, layoffs, and staff furloughs. Declining enrollment has exacerbated the problem, with enrollment decreasing from approximately 17,000 students before Hurricane Katrina to 6,488 in the fall 2024 semester.
But back in 2011 when the decision to transfer UNO to the University of Louisiana System took place, the reasoning was similar. That decision received backing from state lawmakers who viewed it as a strategic step to revitalize UNO. Things have changed in the last 14 years but UNO’s financial problems have not significantly improved.
In Feb. Louisiana Senate President Cameron Henry and House Speaker Phillip DeVillier formally requested the Louisiana Board of Regents to conduct a feasibility study examining the potential transfer of the University of New Orleans (UNO) from the University of Louisiana System back to the Louisiana State University (LSU) System. The study aimed to analyze the financial, academic, and operational implications of such a move.
The unanimous vote, which came quickly after the feasibility study was requested, again reflects the view that this would be a strategic move intended to revitalize UNO.
The Difference
The difference with this transfer compared with the decision in 2011 is that LSU has experienced significant financial growth since 2011. In the fiscal year ending June 30, 2024, the LSU System reported a positive net position change of $279 million. The LSU Foundation's consolidated financial statements for the financial year ending June 30, 2024, also received an unmodified opinion from independent auditors suggesting sound financial management.
In 2011, Louisiana State University (LSU) faced financial challenges due to state budget reductions and the expiration of federal stimulus funds. The LSU System's financial report for the year ending June 30, 2011, indicated a decrease in net assets of approximately $16 million compared to the previous year. This decline was primarily attributed to reductions in state appropriations and the conclusion of federal stimulus funding that had previously supported the university's budget. Since then, LSU has implemented tuition increases authorized under the LA GRAD Act to mitigate some of those financial shortfalls.
This means the transfer of UNO back to the LSU system will allow it to leverage the substantial resources and support available to UNO within the LSU System.
"I look forward to reviewing the findings and having further discussions with my colleagues on the Board on how the LSU enterprise can welcome UNO back into the family," said Scott Ballard, Chair of the LSU Board of Supervisors.
New Orleans City Council Support UNO in Resolution
On March 27, the New Orleans City Council members Thomas and Green formally adopted a resolution to demonstrate their unwavering support for the University of New Orleans, highlighting the vital role the institution plays in enriching the community both inside and outside the classroom.
The resolution states that "The University of New Orleans (UNO) is celebrated as a cornerstone of accessible, high-quality education, welcoming students from diverse socioeconomic backgrounds. Its faculty members are known for their innovative research and scholarly pursuits, which significantly enhance the vitality of the region, state, and nation."
As the only urban public research university in the metropolitan area, UNO is more than just an academic institution, the resolution states. Its dedicated faculty and staff are deeply involved in the community, making meaningful contributions beyond the classroom. UNO's commitment to workforce development, economic growth, and social mobility is seen as essential to the long-term prosperity of Louisiana. Council members are urging state leaders to protect and support UNO’s academic mission and its role as a distinguished urban research institution.
Board Recommendations for the Transfer
Among the key recommendations from the Board of Regents is the establishment of a transition team to oversee and facilitate the transfer process. They’ve also recommended conducting a rigorous third-party analysis, including forensic audits, academic program assessments, and comprehensive facilities evaluations to understand and address UNO's current challenges.
In addition, the Board has emphasized the importance of ensuring compliance with accreditation standards set by the Southern Association of Colleges and Schools (SACS) while the transition is underway. To monitor progress and outcomes effectively, the Board calls for data-informed benchmark reporting.
"I think LSU is better equipped to handle the challenges UNO is facing,” said Senate President Cameron Henry. “I think this is a first step. We'll give it a couple years. Hopefully it'll be successful."
The timeline for the transition could occur as soon as the upcoming fall semester.
