Although the year has just begun, multiple reports in 2025 show the steps colleges and universities are taking in efforts to regain financial stability.
The University of New Orleans, a public institution also known as “UNO,” announced last week it will furlough full-time employees and may also lay off some positions to close its “significant structural budget deficit.”
“This deficit is primarily driven by a combination of declining enrollment and rising operational costs,” President Kathy Johnson said in a lengthy statement. “As we have worked diligently to address these challenges, it has become clear that we must continue to take difficult steps to ensure that UNO remains a thriving institution for generations to come.”
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Exempt from the furloughs are full-time teaching faculty, H1B visa holders, those in positions fully funded by grants, those with athletic contracts, part-time employees and contract employees. “The higher the salary, the more furlough days will be required,” Johnson said.
Late last year, the university froze hiring and spending, eliminated vacant and nonessential positions and shrunk “the campus’ physical footprint.” It also reduced the size of its administration, dropping two vice presidents along with some academic deans, directors and department chairs.
Albright College in Pennsylvania has taken a loan from its endowment to cope with a $20 million budget deficit, according to multiple reports. The college has also eliminated 53 positions and some academic programs and may sell property and artwork as it faces “a risk of closure,” Spotlight PA reported.
Leaders of California’s two largest public university systems have aired their concerns about Gov. Gavin Newsom’s state budget proposal, which is expected to reduce up to 8% of their funding in the 2025-26 fiscal year.
California State University and the University of California face a $375 million and $271 million cut, respectively. The drop in funding is especially notable given that the state budget is estimated to be the second-largest spending plan ever thanks to a $363 million surplus, Cal Matters reports.
Chancellor Mildred García called this a “pivotal moment” for California State University. “Communities that thrive on the CSU’s investments in student learning, service and local partnerships will struggle if the university system’s resources are diminished.”
In potentially better economic news, Massachusetts Gov. Maura Healey has proposed spending $2.5 billion to modernize the campuses of the state’s public colleges and universities. Proposed capital improvements under the bond bill include new labs, classrooms and health care facilities.
