Clarity, Accountability and the Work Ahead

Dear campus community,

Following the State of the University last month, I received a letter from a group of faculty members with questions about our finances, research mission and support for employees. I appreciate their concern for the University and recognize that these issues matter across campus. That is why I am sharing my responses with you today.

These questions also speak to the future we are working to build and the choices required to get there. I have committed to keeping our campus informed about the progress we are making to address our challenges. But this is about more than answering questions. It is also about clarifying our priorities and charting a path toward a stronger, more sustainable University.

This academic year brings fresh energy, new ideas and renewed purpose — at a moment of significant opportunity for Louisiana and our University. Realizing that opportunity demands that we strengthen enrollment, retention and student success, increase revenue and invest strategically in our people and mission.

This work requires all of us. Thank you for the commitment, energy and hard work you bring to our University each day.

Sincerely,

Dr. Ramesh Kolluru
President

_______________________________________________________________

Dear members of the UL Lafayette AAUP Chapter, faculty and staff:

Below are my answers to questions that were posed regarding the financial and strategic direction of the University. The questions reflect understandable concerns about the University’s finances, our academic and research mission and support for faculty and staff.

The University has made significant progress toward financial stability, but our long-term work is not complete. With that context, I want to address three areas that were raised: the University’s current financial position, the protection of our R1 mission and support for faculty and staff.

1. What is our current financial situation?

FY27 budget

In the budget update I provided at the end of the last fiscal year, I reported that the University expected to close FY26 with approximately $3.4 million in available cash. I also stated initial FY27 projections of approximately $297 million in revenue and $323 million in expenses. That $26 million difference reflected what we would face if we continued operating under FY26 spending and revenue patterns. It was a “do nothing different” projection, not the budget we ultimately designed and adopted.

We did something different.

I called on leaders across the University to focus on generating revenue, reducing costs where feasible and aligning their work with Louisiana Vision 2035. They responded with the ideas and choices necessary to produce a balanced FY27 budget.

Together, we began the FY27 budgeting process with a conservative revenue estimate based on the prior year’s actual performance. We then incorporated one-time resources secured for FY27 and aligned planned expenses with those available funds. As a result, the University began FY27 with a balanced operating budget for the first time in approximately a decade.

Within that balanced budget, we protected cultural assets such as the Hilliard Art Museum, KRVS and the Center for Louisiana Studies. We included cost-of-living adjustments for classified employees, a modest initial investment to address the findings of the faculty salary study, and funding for previously committed research faculty startup packages, among other priorities. These choices reflect what we value as a University: our people, our culture and our research mission.

Although the FY27 operating budget is balanced, it remains partially dependent on one-time resources. Our next challenge is to grow recurring revenue through enrollment, student retention, philanthropy, research and operational efficiency.

Administrative structure

The University has substantially reduced and consolidated its senior administrative structure. The FY27 model is organized around six divisions: Academic Affairs, Administration & Finance, Student Success, Research & Innovation, Advancement & Strategy and Athletics.

The restructuring has eliminated specialized positions in the President’s Office and reduced or reorganized senior administrative roles across Administration & Finance, Academic Affairs, Student Success, Research & Innovation, Advancement & Strategy and Athletics. Enrollment Management and Student Affairs have been combined under a single vice president for Student Success. Academic leadership has been streamlined under the provost and vice president for Academic Affairs. The Advancement & Strategy division now includes Communications & Marketing, Governmental Affairs, Alumni Affairs, Development, Advancement Operations, and Economic Development. Within Research & Innovation, the director of SPFAC position has been eliminated, and unit managers now report directly to the interim vice president.

These changes represent more than a reassignment of titles. The University now has fewer executive positions and reporting layers, with broader responsibilities assigned to fewer senior leaders — a leaner administrative structure than we have had in the past two decades. These changes have also required many leaders and employees to assume more responsibilities, and I appreciate their willingness to step forward. Administrative costs, vacancies and executive positions will be rigorously reviewed as part of the overall focus on fiscal discipline.

Workforce changes

The restructuring of senior administration was part of a wider initiative to align expenses with available revenues. During the past year, that effort also required the University to eliminate positions across the institution. Other workforce changes resulted from retirements, resignations and decisions not to fill vacant positions. In many cases, responsibilities were consolidated or reassigned among existing employees. We recognize that these decisions affect our colleagues, their families and the work of units across campus. All staffing decisions will be guided by the University’s financial position, academic and operational needs and our shared vision for future growth. We remain committed to communicating clearly and treating every colleague with dignity, respect and care.

Student fees and Foundation funds

Student fees will be used for the purposes they were established to support. Foundation funds will also remain available for approved uses, subject to applicable donor restrictions, governing agreements and the University’s established review and authorization processes.

2. How will we protect our R1 status?

I have said on multiple occasions that maintaining our Carnegie R1 status is not optional. It requires continued investment in faculty recruitment and retention, startup packages, graduate education, research infrastructure, libraries, software such as SPSS, sponsored programs and the broader research ecosystem. I will not allow our financial recovery to come at the expense of that mission.

Library resources

Our faculty and graduate students rely on research resources to advance scholarship, compete for grants and contribute new knowledge. When considering changes to those resources, we must weigh institutional usage, cost, available alternatives and the potential impact on research and graduate education. Our goal is to preserve and modernize the scholarly infrastructure our researchers need to succeed.

Faculty research travel

Faculty travel for research supports scholarly productivity, increases collaboration and strengthens the University’s research reputation. Travel supported by external grants remains available and has not been affected, and faculty may continue to use Foundation funds consistent with donor restrictions. Academic Affairs has allocated $50,000 for University-funded Faculty Research Travel Grants in FY27. Our goal is to increase available funding as financial capacity improves.

Athletics

Our goal is a financially sustainable Division I athletics program that enhances the University’s academic and research mission while contributing to the institution’s broader success. Athletics has reduced staffing and operating costs and must operate within its approved FY27 budget. Actual expenses decreased from $40.9 million in FY25 to $36 million in FY26. For this year, we allocated $34.4 million for Athletics. In addition, Athletics received $2.1 million in legislative funding, for a total FY27 budget of $36.5 million.

3. How long will faculty have to do more with less?

Faculty and staff need appropriate resources and support to sustain excellence. Over the past year, they have continued advancing teaching, research, academic programs, operations and student success while helping the University retain its R1 designation. Many staff members have also assumed broader responsibilities through substantial workforce changes. I recognize and appreciate what faculty and staff have continued to accomplish. As our financial position improves, rebuilding institutional capacity and investing in our people will remain priorities.

Faculty salary investment

I recognize that the $500,000 included in the FY27 budget will not resolve the salary gaps identified in the faculty salary study. It is a starting point. Addressing market competitiveness, compression, inversion and faculty recruitment and retention will require a multiyear strategy supported by recurring revenue.

Cost-of-living adjustments

As previously mentioned, $500,000 was allocated to cost-of-living adjustments for classified employees. Our objective is to grow recurring revenue through enrollment, retention, philanthropy, research, partnerships and operational efficiencies so compensation improvements can be made responsibly and permanently. I know compensation remains a significant concern for faculty and staff. Until we have sufficient recurring revenue to sustain it, however, I cannot commit to a University-wide cost-of-living adjustment. Faculty and staff compensation will remain a priority as our financial position improves.

Senior administration

I believe accountability starts with me and the University’s senior leadership. We have eliminated or consolidated senior administrative positions and asked existing leaders to take on broader responsibilities, as discussed above. At the same time, a blanket hiring freeze could prevent us from filling positions essential to the University’s mission and future growth. Every position will be carefully reviewed and must demonstrate alignment with our institutional needs and priorities.

Moving forward

Transparency and shared governance require clear financial information, clear explanations of institutional priorities and meaningful engagement across campus. We began FY27 with a balanced operating budget and greater financial stability, but stabilization is not the destination.

Our goal is a financially strong University that can invest in its people, students and mission. I know we have more work ahead, and I am committed to keeping our campus informed, listening to faculty, staff and students and working alongside them as we move forward. This is our moment to align and accelerate!