The Board of Regents voted unanimously to move the University of New Orleans back to the LSU System at its meeting Wednesday, despite uncertainties about the transition.
A detailed report on the transition that was presented at the meeting will now be sent to the state legislature for consideration during the regular legislative session. If the proposal passes, the Southern Association of Colleges and Schools, the regional accrediting agency for both UNO and LSU, must also approve the transfer.
The study found a potential $30 million shortfall in UNO’s budget last year. Elizabeth Bentley-Smith, the Board of Regents’ deputy commissioner for finance and administration, attributed this to decreases in enrollment, tuition and state support.
UNO had around 17,000 students enrolled before Hurricane Katrina and tallied a student body of less than 6,000 last year, noting a 63% enrollment decrease in the last decade. This has led to a decline in tuition and fees, which the report stated now accounts for an average of 60-65% of the school’s total operating budget. State financial support has also decreased since 2011, now only accounting for 18% – or $34 million – of UNO’s budget.
Furthermore, UNO’s contractual obligations, deferred maintenance and athletics have inhibited the university’s ability to support itself. Due to the university’s enrollment and financial hardships, UNO President Kathy Johnson has laid off 30 employees and furloughed hundreds.

“UNO’s fiscal position is one that no institution wants to face, and the issues that have led to its financial woes are ones all of our institutions grapple with,” Bentley-Smith said.
LSU oversaw UNO for over 50 years until the university moved to the University of Louisiana System in 2011, a change that was appreciated by many who felt it had long been overlooked by the LSU System. Last month, State Senate President Cameron Henry and House Speaker Phillip DeVillier requested the board conduct a study to determine the efficacy of the university’s potential transfer back to the LSU System.

Bentley-Smith said SACS would receive the proposal by Sept. 1 and have to approve or reject it by the end of the calendar year. She also points out that SACS will need material from LSU to ensure the system is fully prepared for the transition. However, both Johnson and LSU President William F. Tate IV were absent from Wednesday’s meeting, and neither have publicly given their opinions on the proposed transfer.

“We just recently received this information,” said Remy Starnes, a member of the LSU Board of Supervisors who represented the university at the meeting. “Our administration is diligently reviewing it, looking for ways to make it work… We’re very interested in making it work going forward.”
The board presented a list of recommendations for the transition, like establishing a transition team and promoting collaboration between the universities. The board also suggested a rigorous third-party analysis of the campuses’ finances, academics and facilities and that quarterly benchmark reports and updates be provided to the legislature.

“The Board of Regents supports this transition and are at the ready to provide any additional resources as needed,” Bentley-Smith said.

Many of the regents expressed concerns about how LSU will fix UNO’s current issues and the nearly 150-page-long report’s absence of a plan. Regent David Aubrey noted there was no discussion about LSU’s capability of taking UNO into its system in the report.

“What is the plan, and where is the accountability for the plan?” asked Terrie P. Sterling, the board’s vice chair.

Regents also expressed concerns over the impact this would have on other universities in the state, including the U.L. system. Others pointed out that LSU System’s enrollment has continued to increase despite nationwide enrollment decreases and, as Regent Gallo pointed out, that higher education in the state is currently underfunded by almost a billion dollars.

“We don’t think about just as an institution, but a driver of an economy and prosperity,” Bentley-Smith said. “That’s the higher calling of the conversation today. How do we ensure the strongest, most robust economy, prosperity and opportunity for the people of the New Orleans region?”