(The Center Square) − When universities operate at a deficit, the consequences can trickle down to taxpayers, students or staff.
The University of New Orleans Athletic Department is the latest athletic department facing a million dollar deficit: $4.62 million deficit for fiscal year 2024, as revealed in a recent audit performed by the office of the Louisiana Legislative Auditor.
The office audits the state’s public universities’ athletic departments to ensure they’re in compliance with NCAA financial bylaws.
With total expenses of $8.8 million compared to $4.2 million in revenues, the financial gap is widening for the University of New Orleans’ athletic department, which relies heavily on student fees and institutional support to cover its costs. The university competes in 14 sports as part of the Southland Conference.
Another audit found the university failed to maintain an effective internal audit function and did not fully comply with financial reporting standards.
This deficit is part of a troubling trend across Louisiana’s public universities, with several institutions, including LSU, Louisiana Tech, and Northwestern State, also reporting significant financial shortfalls.
A deficit may lead to increased state funding to cover the gap, placing a heavier financial burden on the public. For taxpayers, it could more of their dollars could be allocated to support these institutions, especially as many public universities rely on state funding to balance their budgets.
It could mean cutting programs, increasing tuition, or reducing staff salaries. Students who rely on athletic scholarships or financial aid could see their opportunities shrink as universities adjust to balance their books.
Additionally, staff members, including coaches, support staff, and administrative personnel, may face salary freezes, layoffs, or reductions in benefits.
LSU’s athletic department reported a nearly $1 million deficit, while Louisiana Tech faced the largest deficit in the state at $10.5 million. Other universities like the University of Louisiana at Monroe, McNeese State, and Nicholls State also posted deficits totaling over $21.7 million.
