Fiscal balance achieved after a year of financial conservation

A fiscal balance has been achieved at the University of Louisiana at Lafayette, which should call for a celebration for those who were around to witness the struggle of crawling out of the $50 million deficit hole. However, the arrival of the good news should not be a reason for complacency. 

Light was first shed on the University’s growing deficit at the beginning of the 2025-26 fiscal year, along with major changes to university leadership and administration. Dr. Edwin Litolff, vice president for administration and finance and chief financial officer, stepped into the role during that time.

For Litolff, the University’s deficit appeared to have been growing deeper and steeper years before it was finally brought to attention. 

“As I look back where we’ve, as a university, have been, I don’t think there’s a point in time where you can pick and say, ‘This is the date that the university started going down financially.’”

Litolff explained that it had been a gradual buildup over years of overspending from declining enrollment and rising payroll.

“We had visions and aspirations, but then financially couldn’t support that, and so it’s hard for a university to realize and grasp that we thought we were very good financially, and we’re not.”

In an effort to pull itself out of the deficit, the University implemented several cost-cutting strategies over the fall 2025 and spring 2026 semesters. These included job reductions, restructuring of offices and departments, restructuring of commencement, ending of housing leases with local hotels and overall budget constraints across departments.

After rolling out measures that had an immediate cost-saving impact, the University focused on more detailed analyses to support long-term sustainability. Litolff shared that there were 96 budget presentations conducted over the span of five months, beginning in March 2026. 

Departments and offices across campus were given the opportunity to present their mission, strategic priority initiatives and cost-saving and revenue-generating opportunities. This was so they could voice their needs and have a say in their budget for the new year. 

After the presentations, Litolff said that they began assessing the revenue from the past year and working on setting the budget for the 2026-27 fiscal year. Once departments spend their allotted amount, they are not allowed to overspend. Any extra funds will roll into a reserve, which Litolff said will be accessible once financial stability has been reached. 

Litolff expressed the challenge of likely having to revise the budget for the fiscal year once enrollment numbers are certain following Census Day on Sept. 11. 

Regarding enrollment, Litolff shared details about the implementation of an earlier deadline for students to pay tuition and fees. On Aug. 20, students could not move into university housing and had their class schedule dropped unless they had paid off tuition and fees, had financial aid or had joined the payment plan. This information was rolled out since registration for the fall 2026 semester.

Justifying this strategy, Litolff said previously, there were students in housing and enrolled in classes who had not paid yet, who were then dropped later on.

“So I think, without a doubt, we will have a better base financially and a more solid enrollment because we did purge students for non-payment,” Litolff said.

To aid students in the payment process and in navigating the new deadline, the University organized “Super Saturday” for the first time, which was a one-stop enrollment services event that helped students get registered, advised and paid. There were relevant resources available, including financial aid assistance. 

When asked about the chances of slipping back into a deficit, Litolff said, “It all comes back to discipline and budgetary control.” 

Acknowledging the difficulty in adapting to a restricted budget, Litolff emphasized the importance of departments living within their set budget. 

“People want to continue to do what they’ve been doing; spending, providing all of the resources and everything that we’ve been able to do, and we’re not financially able to do it right now.”

Spending reservedly will be key to improving sustainability in the University’s finances. While the deficit has just been recovered, it will take continued efforts to reach stability. 

Litolff said, “The numbers are much better than the past year. The problem is, it’s going to take time to build back to where we need to be.”

At the 2026 State of the University address on Aug. 21, along with the announcement of reaching fiscal balance, President Ramesh Kolluru also made announcements regarding investments.

These announcements included a $1 million investment in academic advising and more than $200 million in financial aid and scholarships while keeping tuition and housing rates steady. $500,000 was invested in cost-of-living adjustment for classified staff and another $500,000 to faculty salaries that are furthest from market averages. 

The University also expects more than 3,000 first-time freshmen for the fourth consecutive fall. The actual enrollment number will be determined following Census Day.