Sweeping Furloughs Approved to Save $1.7 Million
The University of New Orleans (UNO) announced a comprehensive furlough plan to address a significant budget deficit, which the University of Louisiana System Board of Supervisors approved on Thursday. This measure will affect the majority of the university’s workforce until the fiscal year ends on June 30, and the plan is expected to save $1.7 million.
Under the plan, employees earning over $30,000 annually, including President Kathy Johnson and senior administrators, will be required to take unpaid time off during every two-week pay period. Lower-paid employees will take one and a half unpaid days per period, while higher earners will take three days off. However, some groups are exempt from this policy, including full-time teaching and tenured faculty, H-1B visa holders, grant-funded staff, athletic department employees, part-time staff, and contract workers.
Non-tenured faculty and administrators with tenure are not exempt, leaving a total of 290 out of 575 full-time employees subject to furlough. President Johnson acknowledged the gravity of this decision, calling it a necessary step to protect UNO’s financial health. “We deeply regret the impact these actions will have on our employees and their families,” Johnson said. “However, these steps are crucial to secure the university’s future amidst these challenging circumstances.”
Financial Shortfalls Force Tough Decisions
The furloughs are part of broader efforts to reduce University of New Orleans’s $100 million operating budget by 15%, bringing it down to $85 million by June 30. Declining student enrollment and rising operational expenses have exacerbated the university’s financial woes.
Despite efforts such as restructuring administrative salaries—resulting in $2.2 million in savings since January 1—and implementing budget and hiring freezes to save another $2 million, University of New Orleans’s still faces a $10 million deficit. Edwin Litolff, the university’s chief financial officer, stated that these measures leave the institution with a shortfall exceeding $4 million.
“We will have a clearer picture of our financial standing in the coming weeks after distributing student financial aid,” Litolff told the board. He also hinted at the possibility of more aggressive furloughs and staff layoffs to bridge the remaining deficit. “If some people are taking off the whole month of June, plan your Disney trip, go on your cruise, because that’s where we may end up being,” he remarked during the board meeting.
Uncertainty Looms for Employees
While staff layoffs remain under consideration, specific details, including the number of positions affected and the timeline, have not been finalized. President Johnson assured the community that affected employees would receive support, including assistance with job placement, mental health resources, and guidance on unemployment benefits.
These difficult financial decisions have sparked concern among staff and faculty about the university’s long-term stability. Still, the administration remains committed to safeguarding UNO’s future. “This is a challenging time for our community,” said Johnson. “We must act decisively to overcome these obstacles and ensure the university’s sustainability.”
As the fiscal year-end approaches, UNO continues to grapple with its financial challenges, leaving employees and stakeholders in a period of uncertainty and adjustment.
