A $13.4 million figure that has fueled public concern about Northwestern State University’s finances was a projected budget shortfall, not a final accounting of the university’s fiscal year 2025-26 results.
The distinction is important as the figure continues to be discussed at civic meetings and in public conversations about NSU’s financial condition.
A July 1 article about a proposed North Louisiana law school reported that Northwestern State projected a $13.4 million shortfall for the fiscal year ending June 30 and said the university had covered the cost by spending down its cash reserves.
The University of Louisiana System report cited for that figure, however, identified the $13.4 million as a projected surplus or deficit based on third-quarter financial information. The report was prepared before the fiscal year had closed and before all final revenues, expenses and year-end adjustments had been recorded.
That means the $13.4 million should not be described as NSU’s final deficit or actual year-end loss.
The final result could be substantially different from the projection because university budgets include salaries, benefits and operating costs that may not ultimately be spent. Vacant positions, delayed hiring, employee turnover and positions filled below their budgeted amounts can reduce actual personnel expenses. Departments also may postpone purchases or spend less than originally budgeted.
NSU’s final fiscal year result cannot be determined until the university and UL System complete their year-end accounting and release actual revenue and expenditure figures.
The same third-quarter report provides additional context that was not reflected in the public discussion surrounding the $13.4 million projection.
As of the quarter ending March 31, Northwestern State averaged 148 days of unrestricted cash on hand — the strongest unrestricted liquidity position among the current universities in the UL System. NSU also averaged 120 days of total cash, ranking second among those institutions.
The report separately projected that NSU would finish the fiscal year with $11.3 million in unrestricted reserves and $51.3 million in total reserves.
Those figures do not prove that Northwestern State avoided a year-end deficit. A university can spend more than it receives during a fiscal year while still maintaining substantial cash and reserves.
They do show, however, that the $13.4 million projection was not the same as an immediate cash shortage, an inability to meet payroll or a final documented loss.
Budget projections and cash measurements address different questions. A projected deficit estimates whether expected annual revenue will cover planned expenditures. Days of cash on hand measure how long an institution could continue meeting expenses using available cash resources.
Public concern over the university’s finances is understandable, particularly when a multimillion-dollar deficit figure is reported without a clear explanation of how it was calculated. But the available UL System documents do not establish that Northwestern State ended the year $13.4 million in the red.
A more precise description is that NSU was projected during the third quarter to end fiscal year 2025-26 with a $13.4 million budget shortfall. The university’s actual year-end result remains subject to final accounting.
Until those actual figures are released, the $13.4 million amount should be treated as a forecast — not as Northwestern State’s confirmed deficit.
The university’s year-end closing, expected within four weeks, should provide the first reliable answer to whether the projected $13.4 million shortfall was close to reality or substantially overstated.