The University of Louisiana at Lafayette has outlined a two-year plan to eliminate its remaining $19.9 million cumulative unrestricted deficit, building on significant financial progress during fiscal year 2026.
President Ramesh Kolluru outlined the plan during a campus town hall on Friday, Oct. 16. The University aims to reduce the deficit by $9 million in FY2027 and eliminate the remaining $10.9 million in FY2028 through a combination of revenue growth, enrollment and retention initiatives, spending controls and operational improvements.
View the presentation slides here.
“Our institutional deficit developed over years, and addressing it responsibly requires a thoughtful, sustained approach,” Kolluru said. “We have made meaningful progress, and we have a clear plan to build on that momentum. Our focus is on strengthening the University's financial position while protecting the academic programs, research, student success initiatives and people who make this institution strong.”
Financial progress and remaining challenges
During FY2026, the University reduced its cumulative unrestricted deficit by $17.8 million, from $37.7 million to $19.9 million. It also closed the fiscal year with approximately $10.1 million in cash on hand, substantially exceeding an earlier projection of $3.4 million.
The University began FY2027 with a balanced operating budget for the first time in approximately a decade. That budget includes approximately $16 million in one-time funding, which helped stabilize the University's finances but does not provide a permanent solution. Long-term stability will depend on sustainable revenues, disciplined spending and continued operational improvements. Fall enrollment below projections also created an approximately $4 million revenue shortfall.
Two-year strategy for long-term sustainability
The FY2027 plan identifies $9 million in potential financial improvements through enhanced student retention, operating budget reductions, tighter controls on certain expenditures, increased sponsorship revenue and improved student account management.
Among the initiatives are investments in academic advising and retention coordinators intended to reduce the number of students who enroll in the fall but do not return for the spring semester.
For FY2028, the University has identified initiatives with a projected financial impact of $12 million, including increased fall and summer enrollment, sponsorship revenue, auxiliary operations and potential property sales or leases. The FY2028 deficit reduction target is $10.9 million.
Kolluru emphasized that the projected financial impacts are goals rather than guaranteed revenues and that progress will require continued monitoring and accountability.
The University is also maintaining its commitment to faculty and staff compensation. Its FY2027 budget includes an initial $500,000 investment toward addressing findings of a faculty salary study, including market competitiveness, salary compression and inversion.
Kolluru also announced plans for a staff salary study and confirmed that funding has been provided to honor previously committed research faculty startup packages.
Aligning operations for greater accountability
Kolluru announced a restructuring of the University's Administration & Finance portfolio to establish more focused executive oversight, clarify responsibilities and strengthen accountability.
Under the reorganization, the chief financial officer will report directly to the president, with a dotted-line reporting relationship to the provost to help align financial decisions with academic priorities.
Human Resources will report to the chief legal affairs officer. The chief facilities officer and chief of University Police will report directly to the president. The chief information officer position will be redefined as chief innovation officer, reporting directly to the president and overseeing enterprise technology, website services and innovation initiatives.
Other changes include moving Housing and Residential Life to the Division of Student Success; KRVS to the Division of Advancement and Strategy; Continuing Education and Distance Learning to the Division of Academic Affairs; and Auxiliary Services and Property and Event Management to the chief of staff and economic development.
Continued progress in Athletics and employee payroll updates
The University also reported substantial financial improvement in Athletics. The department reduced its annual deficit reported to the NCAA from approximately $13.3 million in FY2025 to $5.4 million in FY2026. Kolluru emphasized that financial sustainability and student-athlete success remain central to the University's approach to Athletics.
Kolluru reaffirmed that faculty, graduate assistants and fellows will not transition to biweekly payroll.
Staff members currently receiving biweekly pay will remain on that schedule for now. The University will distribute a survey to gather staff feedback and assess whether employees favor returning to the previous monthly payroll schedule.