Title: Financial Struggles Force UNO to Furlough Staff, Saving $10 Million
In an attempt to address a substantial $10 million budget deficit, the University of New Orleans has obtained approval from the University of Louisiana System Board of Supervisors to implement periodic furloughs for most of its staff members throughout the current academic year. UNO President Kathy Johnson, in a campus-wide message, revealed that the furlough plan involves tiered days off, with higher-salaried employees bearing the brunt of unpaid time off. She also hinted at possible layoffs in the near future and promised support to affected employees.
The Louisiana Illuminator reports that employees earning over $30,000 annually will be required to take unpaid furloughs during each two-week pay period, while those making $100,000 or more will have three days off every fortnight. Lower-paid staff will be required to take up to a day and a half of unpaid furlough per pay period. Out of 575 full-time employees, around 290 will be subjected to these furloughs.
Tenured faculty not in administrative roles, employees on H1-B visas, employees fully funded by grants, staff with athletic contracts, part-time employees, and contract employees are exempted from these furloughs. This move is expected to save the university approximately $1.7 million, which falls short of addressing the current $10 million budget deficit.
At the start of this school year, Johnson had requested academic administrators to brainstorm budget cuts up to 15%, with the athletics department facing a 25% reduction. This led to the elimination of over 70 positions, most of which were yet to be filled, as well as nine non-tenured faculty and staff layoffs. Other budget reduction measures include a spending freeze, administrative restructuring, and decreasing the size of the physical plant.
Despite these actions, the university is still battling a deficit of $4-5 million. Prolonged furloughs and a significant number of layoffs remain potential solutions, as per Edwin Litolff, UNO's chief financial officer. Blaming the deficit on factors including decreasing enrollment and escalating operational costs, Johnson emphasized the need to adjust the budget to match current revenues.
Moving forward, UNO will continue to adhere to its UNO 2030 strategic plan, focusing on enhanced recruitment and retention, community partnerships, and revenue generation through grants and private-sector collaborations. This strategic vision aims to safeguard the university's future, maintain its academic mission, and serve the New Orleans community with unwavering dedication.
The University of Louisiana System Board of Supervisors also considered layoffs as a potential solution to address the budget deficit at the University of New Orleans, according to UNO President Kathy Johnson's campus-wide message. If the budget situation worsens, more layoffs might be necessary to balance the budget deficit of $4-5 million.
